AnswersGA-GSE Personal Finance and EconomicsInsurance

Insurance — Unit test Answers

29 verified answers7 views
1
Free Preview

Federal and state governments protect victims of identity theft by

A
creating laws that impose fines and jail time for identity thieves.
B
passing laws requiring financial institutions to reimburse victims.
C
forcing credit-reporting agencies to notify victims of suspicious activity.
D
requiring people to do a better job protecting their personal information.
2
Free Preview

One advantage to buying a CD is that it

A
can be purchased for different amounts.
B
is high risk but comes with great rewards.
C
can be used for long-term retirement.
D
is high risk but backed by the government.
3

A credit score tells a lender how

A
quickly someone will repay a loan.
B
much money someone will earn in the future.
C
trustworthy someone is as a lender.
D
trustworthy someone is as a borrower.
4

Read the sample advertisement.Lose body fat and feel healthier with our proven supplement, Edgozene! Losing weight is easy with Edgozene! Just take two pills before each meal. You’ll start to feel full and won’t eat as much. No other diet pill offers what our product does and, if you buy now, you can get two bottles of Edgozene for just $29.95!

A
for a limited time
B
two bottles for $29.95
C
our proven supplement
D
no other diet pill offers
5

What is one cost of avoiding insurance?

A
falling into debt if faced with a serious problem
B
not benefitting from insurance deductibles
C
not being able to purchase a car or home
D
facing increased probability of accidents
6

Companies report people to credit agencies if they

A
fail to pay their bills on time.
B
borrow too much money.
C
fail to use different types of credit.
D
use large amounts of credit at once.
7

Why were savings and loans (S&Ls) originally established?

A
to help people invest in small businesses
B
to help people save money
C
to help people buy homes
D
to help people invest in the stock market
9

In some cases, it is safe to avoid insurance because

i
it is too expensive.
i
it may not be needed.
o
only one person is at risk.
o
one is already in debt.
10

What is the job outlook for a US postal worker?

T
The career is growing and will provide more opportunities over time.
T
The career is growing and will provide fewer opportunities over time.
T
The career is shrinking and will provide more opportunities over time.
T
The career is shrinking and will provide fewer opportunities over time.
11

This table compares the requirements for a career as an athletic trainer or an air traffic controller. A student who is interested in becoming an air traffic controller will make

Question illustration
A
more money than an athletic trainer but will have a harder time finding a job.
B
more money than an athletic trainer and will have an easier time finding a job.
C
less money than an athletic trainer but will have an easier time finding a job.
D
less money than an athletic trainer and will have a harder time finding a job.
12

If having a warranty on a car is important, a person should buy a car that is .

Answer:

new

13

Which are considered types of credit available to borrowers? Check all that apply.personal loansbondscredit cardsmortgagescashauto loansgift cards

A
personal loans
B
bonds
C
credit cards
D
mortgages
E
cash
F
auto loans
G
gift cards
14

What is one difference between a vocational school and on-the-job training?

A
A vocational school degree takes one year to earn. On-the-job training takes two or more years.
A
A vocational school degree takes weeks or months to earn. On-the-job training takes two years or fewer.
A
A vocational school is usually paid for by the worker. On-the-job training is usually paid for by the employer.
A
A vocational school is usually paid for by the employer. On-the-job training is usually paid for by the worker.
15

Which describes the difference between a personal loan and a credit card?

A
Credit cards offer lump sums of money, while personal loans set a maximum amount a person can borrow.
B
Credit cards are secured loans for large amounts, while personal loans are unsecured for small purchases.
C
Personal loans offer lump sums of money, while credit cards set a maximum amount a person can borrow.
D
Personal loans are secured for small purchases, while credit cards are unsecured loans for large amounts.
16

Emily is deciding whether to buy the same designer jacket her friends have. The jacket is much more expensive than a similar one from a lesser-known brand.Which questions should she consider before she buys the jacket? Check all that apply.

A
Is advertising influencing her?
B
What are her motivations?
C
Has she compared prices?
D
Is she buying at the right time?
E
Will her sister like the jacket too?
17

What does purchasing insurance for a business reveal about the business owner’s attitude toward financial risk?

A
It shows that the owner expects financial risk and is eliminating it by making an insurance company liable.
B
It shows that the owner acknowledges the financial risks and is willing to pay every month to transfer the risk to an insurance company.
C
It shows that the owner is willing to share ownership of the business to reduce financial risk.
D
It shows that the owner is willing to budget for short-term financial risks to avoid long-term risks.
18

Bankruptcy is considered a last resort because it stays on someone’s record for

A
one to four years.
B
four to seven years.
C
seven to ten years.
D
eleven to fourteen years.
19

Credit unions differ from retail banks because they are

A
owned by their members.
B
owned by their employees.
C
owned and managed by private corporations.
D
owned by shareholders who purchased stock.
20

Look at the table below showing an example of a checkbook ledger.

Question illustration
A
Adrienne forgot to include the $2.00 ATM transaction fee.
B
Adrienne did not use $320.00 as her starting balance.
C
Adrienne deducted $23.50 from her balance instead of $32.50.
D
Adrienne did not enter her ATM withdrawal correctly.
21

What is one way employers get employees to participate in a 401k?

A
by requiring them to participate unless they opt out
B
by requiring them to opt in if they want to participate
C
by giving them an annual pay raise
D
by giving them a signing bonus when they participate

Did you find these answers helpful?

More from this Course

Quiz
24 verified answers

Unit Test

Quiz
29 verified answers

Unit Test

Quiz
28 verified answers

Unit Test