taxes & insurance test
What is the average monthly renter's insurance premium cost in the U.S.?
$15/month
The FDIC insured deposit limit is
$250,000
Under current law, until what age can child stay on their parents' health insurance?
26
What is an annual fee?
A fee charged by a card issuer for being a card holder
Your Health Insurance copay is
A fixed amount of money you pay each time you use your plan
This professional analyzes statistics and uses them to calculate risks and premiums.
Actuary
Where can you find reviews on products?
All are great resources
What purchasing options should you consider when shopping?
All are options to consider
You have a choice between two credit cards: American Express 8.99% or Chase Sapphire 12.99%. Which card offers the better rate?
American Express
The cost of credit expressed as a yearly interest rate is known as
Annual Percentage Rate (APR)
Which insurance coverage is required by law?
Auto Insurance & FDIC
How can you obtain health insurance?
Buying directly from an insurance agent & Shopping on the health Insurance Marketplace
A stone hits your windshield. Which type of coverage would likely cover this expense?
Comprehensive
What is a product that quickly wears out?
Consumable good
A policy is contract between the
Consumer and the insurance company
Which of the following wouldn't save you money on your auto insurance premium?
Decrease your deductible
The out of pocket cost to the insured when a loss occurs is called
Deductible
What factors impact the cost of your auto insurance premium?
Deductible amount & The vehicle you are insuring & Your credit score
What type of product is bought with the intention of it lasting for a significant length of time?
Durable Good
There's no penalty if I pay my credit card balance after the due date.
False
When you are considering making a purchase, you should always buy new so it lasts longer.
False
Which types of insurance are most appropriate for single, working 24-year-old?
Health Insurance & Disability Insurance & Auto Insurance
How do you know when website is secure?
If the address is "https" rather than just "http"
The federal agency that oversees insurance companies is
Insurance companies are regulated on state-by-state basis
The cost of borrowing money is referred to as
Interest
What role does insurance play in financial planning?
It guarantees that income and assets are protected
Which is TRUE about Social Security?
It replaces part of your incomes when you retire & It replaces part of your income if you become disabled & It replaces part of your income if you die leaving survivors
Paying the minimum payment on a credit card every month will
Make the final amount paid substantially higher than the amount initially charged to the card
Which of the following would be covered under a renter's insurance policy?
Medical bills of another person who is injured on the property.
The least amount that must be paid on credit card each month is
Minimum payment
What information is typically listed on an insurance policy?
Name of person or property being insured & Deductible amounts & The policy period
How can you avoid paying interest fees on your credit card?
Pay off the full balance, on time, each month
How can a cardholder avoid paying interest on a credit card?
Pay the balance in full every month
What are the steps in the planned buying cycle process?
Prioritize wants, research, evaluate budget, buy
Jennifer has an auto policy of $20,000/$40,000/$10,000. The $10,000 covers
Property damage per occurrence
Having a high credit score will allow lenders to give you lower interest rates
True
Insurance is based on the concept of shared risk or risk pooling
True
It is wise to compare credit card offers before choosing one
True
When reading reviews about the product, the more people that have reviewed the product the better.
True
You should go through the planned buying process ( to some degree) with every single purchase you make.
True
Benefits of credit cards include
all of these
Examples of penalty fees include
all of these
The maximum amount you may borrow on a credit card is known as
credit limit
What is a good practice when it comes to credit cards?
paying the amount charged in full each month
How do you calculate the cost per use for a product?
total cost / times used
When considering purchasing a product, you should also consider:
you should consider all of these things.