Personal Finance Semester Test

Ace your homework & exams now with Quizwiz!

Insurance Policy

A contract written to protect individuals named in the policy against specific future losses

600

A credit score below _____ determines if a customer is a risky borrower

False

A joint checking account can be opened by two or more people

Down Payment

A large sum of cash you pay up front when you make a large purchase is called a ______________

Townhouse

A living space that has two or more levels.

True

A money order can never bounce

Trustee

A person or institution that manages property for the benefit of someone else under a special agreement is a _______

trustee

A person or institution that manages property for the benefit of someone else under a special agreement is called a(n)

Stop-Payment Order

A request that a bank not honor a specific check is called a(n)

stop-payment order

A request that a bank not honor a specific check is called a(n)

Risk

A situation in which some kind of loss is possible

Security deposit

A sum of money usually equal to one month's rent, held by the landlord to cover any damage to the apartment caused by a tenant.

Notary Public

A(n) ___________ verifies a person's identity, witnesses the person's signature on a legal document, then "notarizes" the signature as valid

Percentage

APR is the cost of the loan per year as a ______ of the amount borrowed

Safe Deposit

Financial institutions offer customers a(n) _______ box to store valuable items or documents

True

Floating a check is illegal in most states

True

For college students, the decision of where to live largely depends on finances

True

For your safety, do not carry your PIN in written form; instead, commit it to memory

False

Furnished rentals are usually cheaper than unfurnished rentals

Liability

If there was an accident in your apartment, which part of your renter's insurance policy would cover you? (someone got hurt)

As is

If you buy a car without warranty it is considered ___ ___

False

If you live in a rental property, you are expected to leave it as you found it-even so-called "normal wear and tear" is not acceptable

No

If your landlord has insurance on your apartment complex, are you covered under their policy?

Long-Distance phone calls

In a typical roommate arrangement, this expense would not be shared between roommates

Bodily Injury Liability

In auto insurance, liability coverage that pays for physical injury to people in other vehicles

Compound Interest

Interest paid on the original principal plus accumulated interest is called ________

False

Leases usually require six months notice of rent increases and tenant departures

Deter, Detect, defend

List 3 ways to prevent ID theft

True

Many large campuses have housing for married couples

True

Once you file a claim, your premium may rise

False

One disadvantage of using direct deposit is that your paycheck can only be deposited into a savings account, not a checking account

Insurer

The company or agency that writes an insurance policy

rent

The monthly charge you pay to live in an apartment is called

True

The more often interest is compounded, the greater your interest earnings will be

Payee

The person who cashes the check is called the_______

Eviction

The process of removing a renter from a rental property is called ________

True

The usual reason for a stop-payment order is that the check has been lost or stolen

False

There are 6 parts to an insurance policy

Liabilities

Things you owe money on

What is your birthday?

WHich of the following is probably NOT a question you need to ask of a prospective roommate

Federal insurance contribution act

What does FICA stand for?

Replacement Cost

What has higher value, Actual Cash Value or Replacement Cost

Credit report

What should people check every year to make sure their ID has not been stolen?

Bundling

combining services into one package to save money

Deductible

The amount the insured pays on a claim before the insurer pays the remainder

Special Endorsement

"Pay to the order of" is this kind of endorsement

False

3rd party coverage is not required in most states

Check

A ______ is a written order to a bank to pay the amount stated to the person or business named on it

Blank

A _______ endorsement is the signature of the payee written exactly as his or her name appears on the front of the check

Debit

A _________ card is a plastic card that allows immediate deductions from a checking account to pay for purchases

Rental Agreement

A _________ is a written agreement that allows you to leave anytime as long as you give the required notice; these are often called month-to-month agreements

register

A booklet used to record checking transactions is called a checkbook _________

True

A canceled check is one that has been processed by the bank.

Cashier's Check

A check written by a bank on its own funds is called a

Overdraft

A check written for more money than your account contains is called a(n)

Insured

An individual, usually but not always the buyer, covered by an insurance policy

Dormitory

An on-campus building that contains many small rooms that are rented out to students is called

False

By far, the biggest advantage of renting is that tenants have no responsibilities whatsoever

False

By law, a renter can refuse to allow the landlord into his/her living unit at all times

Comprehensive Coverage

Covers damages not from an accident

15

Credit card companies have to give you a ____ days warning before they increase the interest rate

Payment/deposit column

Darren writes a check to the phone company for $45.60. He should record this amount in his checkbook register in the __________________ ________

False

Debit card transactions do not need to be recorded in your checkbook register

True

Earnings on principle is called interest

False

Efficiency apartments have less living space than other apartments, but they are also more expensive

False

FDIC insurance protects the deposits of customers against loss up to $1,000,000 per account

False

Paying bills online is generally considered slower and riskier than writing checks

Premium

Payment made by the insured to the insurer

True

People often choose their financial institution because of convenience of location and the services offered

Revolvers

People who do not pay off their credit card bills are called ________

Deadbeats

People who pay their bills on time are called _______ by credit card companies

$250,000

Savings accounts protected by the FDIC are protested from loss for up to ____________

Share Accounts

Savings and checking accounts at a credit union are usually called

Share accounts

Savings and checking accounts at a credit union are usually called

False

THe amount per accident that you have to pay out of pocket before insurance starts to pay is comprehensive coverage

Lemon

TO protect consumer's rights, each state has its own regarding the purchasing of used cars

Marquette

The ________ decision allowed banks to export their interest rates to other states

Collision

The act or process of colliding; a crash or conflict

Principle

The amount of money you deposit into a savings account is called the ________

Bounced

When a check is returned to the payee's bank due to insufficient funds, the check is said to have __________

Assets

When determining your net worth, what term means the things you own?

True

When filing a claim, it is important to report it promptly to the insurance agent or company

A habitable dwelling

Which of the following is an obligation of the lessor

tv

Which of the following would be covered in your homeowner's policy?

Minimum responsibilities

Which of the following would generally be considered an advantage of renting?

Horse Trailer

Which of the following would not be included on your homeowner's policy?

The memo line

Which part of a check provides a place for you to write the purpose of the check?

Overdraft

With _________ protection, your checks will be covered even if you have insufficient funds in your account

True

You can save money on moving by doing your own packing

True

You have a legal and ethical responsiility to help anyone who is injured within reason

True

You should reconcile your checking account as soon as you receive your bank statement

False

You usually don't need to worry about having a source of income until after you have rented a place

FICO

Your credit score

Kelley Blue Book

________ _______ _______ is the online guide you can use to shop for vehicles that helps you find accurate prices

Safety

________ of principle means that you are guaranteed to not lose your savings deposit, even if the band or other financial institution goes out of business

Credit Limit

_________ is the maximum amount you can borrow or be loaned

Duplex

a building with two separate living units

Cashier's check

a check written by a bank on its own funds

Rental inventory

a detailed list of current property conditions

compound interest

interest paid on the original principal plus accumulated interest


Related study sets

Human Sexuality - Chapter 10 - Conception, Pregnancy and Childbirth

View Set

Kinematics Multiple Choice (Graded for Accuracy)

View Set

COP3503C - Quiz 2 Study Guide - Classes

View Set

Chapter 10 Bony Thorax- Sternum and Ribs

View Set