Personal family finance final

If someone dies without a will, who handles the distribution of the person’s estate? The state
You should always read the fine print before signing a contract. True
Everyone has the same amount of risk. False
If someone dies without a will, a situation known as intestate, the state will step in to handle the distribution of the estate, even if it is not what you may have wanted. True
When you want to add coverage for something not included in an insurance policy, what would you add to your policy? A rider
Who agrees to pay for certain types of losses in exchange for payments on a policy? Insurer
Contracts are really only used for business; most people do not have contracts for their personal finances. False
What document details the type of medical care that you wish to receive if you become incapacitated due to a physical or mental illness? Living will
What is the amount of money that the policy holder will pay before the insurance company will pay on an insured loss? Deductable
Negligence is typically thought of as a failure to take reasonable actions to prevent injury or damage. True
What is a failure to take reasonable actions to prevent injury or damage? Negligence
The specific protection that the insurer provides to the policy holder is known as which of the following? Coverage
With a contract, consideration is something of value offered by one party in exchange for something of value from the second party. True
Consensus ad idem means which of the following? Meeting of the minds
Experts recommend that you only use insurance if the item is worth more than $100,000. False
What is an advantage of a savings account? The money is available for an emergencyThe money can double or triple in a short period of timeThe account is riskier that investing in stocks
T-bills are offered in what monetary increment? $1000
Although stocks can generate greater revenue, they are also more risky than many forms of investments. True
All investments carry the same amount of risk. False
Municipal bonds are issued by whom? Federal government
Preferred stocks share characteristics with which of the following? Common stocks and corporal bonds
Individuals have to choose whether to save or invest, since it is not recommended to do both. False
One of the advantages of having a savings account is that it is money that can be used for emergency purposes, whereas money in bonds, CDs, or investments may not be readily available. True
Real estate is a great investment for everyone, particularly since the money is more liquid than common stocks. False
Common stocks are considered to be lower risk than municipal bonds. False
What is a disadvantage of government bonds? They are difficult to find
What is true about preferred stocks? They give owners a share of ownership in the company
A stock is a share of what? Ownership
The broad types of investments are known as which of the following? Asset classes
If you have a financial professional advising you on investments, it is not necessary to do your own research. False
What is a typical grace period for a credit card? 20 to 25 days
What type of card includes a computer chip with additional information on it? Smart card
One advantage of credit is that it can give you a “float” time between buying the product and when you need to pay for the product. True
Consumer credit has very few advantages and is best avoided at all times. False
Smart cards are also known as gift cards. False
Individuals who do not pay off their credit card balances each month are known as which of the following? Borrowers
A bank line of credit is a prearranged loan amount that you can access by writing specific checks. True
Something of value that is used to back up a loan is known as what? Collateral
What is true about the payments with closed-end credit? They remain the same until the credit is paid off
What is one of the best ways to avoid credit problems? Pay your credit bills on time each month
What is a reason why someone would use a secured credit card? To help overcome a bad credit history
Those who pay off their credit balances in full each month and avoid the finance and interest charges are known as convenience users. True
Credit cards all use the same interest and finance charges. False
In regards to credit, what does capacity mean? Your perceived ability to repay your loans and debt.
The assets that you currently own are known as which of the following? Capital
Financial goals should not be considered when creating a budget. False
What is an assessment of what you own and what you owe? Personal balance statement
What types of records are best kept in safe deposit boxes? Valuable records like marriage records or stock certificates
What is a reason for keeping organized financial records? Paying bills Filing taxes Measuring financial status
What budgeting option is best used only with limited resources and expenses? Mental budgeting
Only individuals that make over $50,000 per year should worry about creating a cash flow statement. False
What is a characteristic of a successful budget? Realistic
The first step in creating a budget is to identify your expenses. False
A home file is the place where you should keep financial records that you may need to access regularly. True
What is a record of income and expenditures for a particular period? Cast flow statement
It is not important to keep financial records since they can all be found online. False
Net worth is the difference between your assets and your liabilities. True
What type of budget involves placing money into envelops? Physical budget
A budget variance is any difference between what was actually spent during the time period and the budget. True
Liabilities are the amounts of money due to others that need to be paid now. True
Smaller bags of items are generally lower priced per unit than larger bags. False
In the United States, over 9 million are victims of identity theft each year. True
Weasel Words involve advertising all of the good things about a product while ignoring the negative aspects of the product. False
One of the first steps that you can take is to place a fraud alert on your credit reports from Equifax, Experian, and TransUnion. True
What might be a consideration in deciding where to buy something? The location of the storeThe price of the item you wish to buyCustomer service
Experts recommend that you don’t wait for sales before buying an item, since the item is likely to rise in price in the time you wait. False
Which of the following issues credit reports? Equifax
Advertisements are paid for by whom? Sponsors
If you receive a phone call and the caller asks for personal information, what should you do? Refuse to give the information and hang up
It is hard for identity thieves to steal any identity in today’s society. False
The Glittering Generalities technique involves using appealing words to sell the product. True
If you believe that your identity has been stolen, you should close the accounts that have been compromised. True
What advertising technique focuses on the positive and ignores any negative aspects in the product? Card stacking
Fraud alerts and credit freezers are the same thing. False
Credit freezes prevent anyone from viewing your credit report, essentially blocking the creation of new credit accounts in your name. True

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