Personal Finance Semester Test
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
