Finance Exam 4

Basic health insurance coverage includes hospital expense insurance, surgical expense insurance, and physician expense insurance. true
A coinsurance provision requires the policyholder to share the expenses beyond the deductible amount. true
Co-payment and coinsurance are synonymous. false
The cost of health insurance can be affected by the terms of the coinsurance provision. true
Which one of the following provisions requires that the policyholder pay a basic amount before the policy benefits begin? deductible
Comprehensive major medical insurance is a type of major medical insurance that has a very high deductible amount. false
The cost of a health insurance is rarely affected by the size of the deductible. false
PPO plan members often pay no deductibles and may make minimal co-payments. true
Part A of Medicare pays for all covered services for inpatient hospital care after you pay a single annual deductible. true
A deductible provision requires the policyholder to pay a basic amount before the policy benefits begin. true
A personal balance sheet reports your income and expenses. false
A personal balance sheet presents items owned and amounts owed.
With an open-end credit, you pay back one-time loans in a specified period of time in equal amounts. false
In a closed-end credit, loans are made on a continuous basis and you make at least partial payment. false
Closed-end in credit is used for a specific purpose and involves a specified amount true
In a closed-end credit, generally the seller holds title to the merchandise until the payments have been completed. true
The three most common types of closed-end credit are installment sales credit, installment cash credit, and single lump-sum credit. true
Many retailers use open-end credit. true
The Federal Trade Commission Act requires that open-end creditors let you know how the finance charge and the APR will affect your costs. false
Kathy purchased a $2,000 digital TV from Young’s Appliances. She will make 12 equal payments over the next year to pay for it. She is using. closed-end credit
A good example of a closed-end credit is a mortgage loan.
Mortgage loans, automobile loans, and installment loans for purchasing furniture or appliances are examples of closed-end credit.
Another name for open-end credit is revolving credit.
A good example of an open-end credit is the use of a bank credit card to make a purchase.
Ease of mobility is a common advantage associated with home ownership. false
Renting is more advantageous than buying a home for lower short-term living costs.
A cost associated with home buying would be property tax
The main financial benefit of renting is lower initial cost
ersonal risks, property risks, and liability risks are types of speculative risks. false
Liability is legal responsibility for the financial cost of another person’s losses or injuries. true
Financial responsibility laws require that drivers have automobile liability insurance. false
The 100/300 amounts for bodily injury liability insurance refer to the costs of insurance coverage. false
Possible losses due to negligence resulting in bodily harm or property damage to others are called ____________ risks. liability
While cleaning your home, a worker damages some furniture. You take action against the worker’s employer to cover the cost of the damage. This is an example of a (n) ____________. liability
An umbrella policy is designed to cover major personal liability suits.
The 25 in 50/100/25 refers to ____________ coverage. property damage liability
Negligence refers to failure to take ordinary and reasonable care.
Possible losses due to negligence resulting in bodily harm or property damage to others are called ____________ risks. liability
Which of the following would result in a reduction of taxable income? exclusions
An amount not included in gross income is an exclusion
An exclusion affects a person’s taxes by reducing the amount of taxable income.
A tax ____________ is an amount subtracted directly from the amount of taxes owed. credit
Which of the following is an example of a tax credit? child and dependent care expenses
Money received by an individual for personal effort is ____________ income. earned
Earnings from a limited partnership would be an example of ____________ income. passive
Taxable income is a result of subtracting adjustments to income, deductions, and exemptions from gross income. true
____________ are expenses that a taxpayer is allowed to deduct from adjusted gross income. itemized deductions
An expense that would be included in the itemized deductions of a taxpayer is real estate property taxes.
Itemized deductions are recorded on schedule A
An example of an itemized deduction is certain job-related travel expenses.
Long-term care insurance provides day-in, day-out care for long-term illness or disability. true
The cost of health insurance can be affected by the terms of the coinsurance provision. true
Good disability plans pay when you are unable to work at your regular job.
With disability income insurance, benefits usually begin Between 30 and 90 days after the disability occurs.
the waiting period in disability income insurance is called ____________ period. elimination
Generally, disability income policies with longer waiting periods have lower premiums
The premium for non-cancelable and guaranteed renewable disability income insurance is higher, But the coverage is well worth the extra cost.
In most employer-sponsored disability income insurance plans, your employer pays part or all of the cost.
types of insurance term, whole, universal life, disability, car, home
Renting is more advantageous than buying a home for lower short-term living costs.
how long you have to bitch about billing error 60 days and then 30 days for them to respond
A Chapter 7 bankruptcy is also known as straight bankruptcy. true
Both Chapter 7 and Chapter 13 bankruptcy are considered an easy way out of debt. false
In a straight bankruptcy many, but not all, debts are forgiven. true
In a Chapter 13 bankruptcy, the debtor normally keeps all or most of his or her property true
Obtaining credit may be easier for people who file a Chapter 7 bankruptcy than a Chapter 13 bankruptcy. false
Obtaining credit may be easier for people who file a Chapter 13 bankruptcy than a Chapter 7 bankruptcy. true
If you declare a Chapter 7 bankruptcy, you do not have to pay alimony, child support, or educational loans. false
The majority of personal bankruptcies are filed under Chapter 13 of the U. S. bankruptcy code. false
Personal bankruptcies have been declining in recent years. false
In a Chapter 7 bankruptcy, a person filing for relief is called a debtor
Which bankruptcy allows a debtor with a regular income to extinguish his or her debts from future earnings or other property over a period of time? ch 13
The Bankruptcy Act of 1978 made personal bankruptcy easier
In a Chapter 7 bankruptcy, a debtor is required to draw up a petition listing all assets and liabilities.
Medigap insurance, intended to supplement Medicare, is sold and serviced by the federal government. false
Medicare does not cover the expenses of private-duty nursing care. true
Two sources of government health insurance are Medicare and Medicaid. true
President Franklin D. Roosevelt established Medicare for people who are at least 60 years old. false
Local IRS offices take applications for Medicare and provide information about the program. false
Medicare has two parts: hospital insurance (Part A) and medical insurance (Part B). true
Medicare hospital insurance (Part A) helps pay for doctors’ services and a variety of other medical services and supplies not covered by hospital insurance. false
Medicare medical insurance (Part B) helps pay for doctors’ services and a variety of other medical services and supplies not covered by hospital insurance. true
Medicare covers all medical costs but only if you are at least 65 years of age. false
Medicare covers routine checkups, dental care, most immunizations, cosmetic surgery, routine foot care, eyeglasses, and hearing aids. false
Which health care program is perhaps the best-known government health program? medicare
Hospital insurance Part A and medical insurance Part B is characteristics of medicare
What is covered by Medicare? none of the above

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