Question 1

Carrie is trying to find a way to reduce her car insurance premium.She would be well advised to decrease her insurance policy's deductible.

Accepted Answer

A) True 
 B)False

Question 2

Everything else constant,the higher the deductible on your car insurance policy,the higher the premium for your car insurance.

Accepted Answer

A) True 
 B)False

Question 3

It is likely that young adults today will benefit from the recent trend in the Social Security system to increase benefits and expand the cost-of-living adjustments.

Accepted Answer

A) True 
 B)False

Question 4

Young married couples that find themselves running out of money at the end of the month,might be well advised to:

Accepted Answer

A)  keep track of all of their expenses.
B)  keep track of cash spent on major purchases.
C)  prepare a balance sheet.
D)  apply for additional credit cards.E) A) and D)
F) A) and C)

Question 5

House payments tend to rise at a faster rate than do rent payments on a similar sized house.

Accepted Answer

A) True 
 B)False

Question 6

Many employers offer health insurance coverage for their full-time employees.

Accepted Answer

A) True 
 B)False

Question 7

Real estate taxes and mortgage interest payments are both:

Accepted Answer

A)  expenses of home ownership on which the government levies a tax.
B)  tax deductible for renters.
C)  tax deductible for homeowners.
D)  taxable income for renters and homeowners.E) C) and D)
F) A) and D)

Question 8

The Social Security program was established in:

Accepted Answer

A)  1889.
B)  1935.
C)  1953.
D)  1976.E) All of the above
F) C) and D)

Question 9

Unlike whole life policies,a universal life insurance policy typically invests part of the premium in very aggressive,high-risk assets.

Accepted Answer

A) True 
 B)False

Question 10

The path to success in a capitalist system is to:

Accepted Answer

A)  spend more on capital goods than you do on consumer goods.
B)  have access to debt markets.
C)  have money to invest.
D)  work hard with the goal of moving up in the management of your employer.E) None of the above
F) A) and B)

Question 11

Over 35% of U.S.households do not have a retirement account.

Accepted Answer

A) True 
 B)False

Question 12

Which of the following is least likely to result from the problems facing the Social Security system?

Accepted Answer

A)  an increase in the age at which full Social Security benefits are received
B)  cuts in benefits
C)  reductions in Social Security taxes
D)  reductions in cost of living adjustmentsE) A) and D)
F) All of the above

Question 13

Joseph and Mack are good friends who have similar jobs that pay them well.Both have established budgets that allow them to invest several hundred dollars each month.Mack has a strategy of putting most of his money in bank CDs and a savings account.Joseph has opted for a strategy of investing in the stock market.According to the evidence of the past 50 years,it is likely that over the long-run:

Accepted Answer

A)  Mack and Joseph will experience very similar rates of return.
B)  Mack will experience a significantly higher return than Joseph.
C)  Joseph will experience a significantly higher return on his investments than Mack,but will also experience more ups and downs over the years.
D)  Mack will experience a slightly higher return,but Joseph's return will be more stable and predictable.E) B) and D)
F) All of the above

Question 14

Financial planning begins with:

Accepted Answer

A)  spending money wisely.
B)  earning money.
C)  insuring your assets against an unexpected loss.
D)  saving money.E) A) and D)
F) B) and C)

Question 15

If possible,it is almost always better to buy a single home rather than a duplex.

Accepted Answer

A) True 
 B)False

Question 16

A common purpose of a rider added to a homeowner's policy is to:

Accepted Answer

A)  provide coverage for items that the standard policy does not cover.
B)  limit the insurance company's liability for certain types of losses.
C)  waive the provision that requires the owners to get a health exam.
D)  allow the policy holder to obtain health,disability,and auto insurance under their homeowner's plan.E) B) and D)
F) C) and D)

Question 17

One way to motivate yourself to start saving is to visualize your goals and think about how much money it will take to achieve them.

Accepted Answer

A) True 
 B)False

Question 18

As a recent college graduate just starting out on his own,Greg needs health,disability,car,and auto insurance.He may be able to save money by obtaining an umbrella policy.

Accepted Answer

A) True 
 B)False

Question 19

Whole life insurance premiums provide the insured with both pure insurance and a savings plan.

Accepted Answer

A) True 
 B)False

Question 20

Personal financial planners recommend renting a home,rather than incurring the cost of buying a home.

Accepted Answer

A) True 
 B)False

Exam 25: Managing Personal Finances

Over 35% of U.S.households do not have a retirement account.

Correct Answer
verified

House payments tend to rise at a faster rate than do rent payments on a similar sized house.

Correct Answer
verified

Financial planning begins with:

Correct Answer
verified

Unlike whole life policies,a universal life insurance policy typically invests part of the premium in very aggressive,high-risk assets.

Correct Answer
verified

Correct Answer
verified

One way to motivate yourself to start saving is to visualize your goals and think about how much money it will take to achieve them.

Correct Answer
verified

If possible,it is almost always better to buy a single home rather than a duplex.

Correct Answer
verified

Personal financial planners recommend renting a home,rather than incurring the cost of buying a home.

Correct Answer
verified

The Social Security program was established in:

Correct Answer
verified

As a recent college graduate just starting out on his own,Greg needs health,disability,car,and auto insurance.He may be able to save money by obtaining an umbrella policy.

Correct Answer
verified

Whole life insurance premiums provide the insured with both pure insurance and a savings plan.

Correct Answer
verified

Which of the following is least likely to result from the problems facing the Social Security system?

Correct Answer
verified

A common purpose of a rider added to a homeowner's policy is to:

Correct Answer
verified

Young married couples that find themselves running out of money at the end of the month,might be well advised to:

Correct Answer
verified

Real estate taxes and mortgage interest payments are both:

Correct Answer
verified

Everything else constant,the higher the deductible on your car insurance policy,the higher the premium for your car insurance.

Correct Answer
verified

Many employers offer health insurance coverage for their full-time employees.

Correct Answer
verified

The path to success in a capitalist system is to:

Correct Answer
verified

Carrie is trying to find a way to reduce her car insurance premium.She would be well advised to decrease her insurance policy's deductible.

Correct Answer
verified

It is likely that young adults today will benefit from the recent trend in the Social Security system to increase benefits and expand the cost-of-living adjustments.

Correct Answer
verified

Exam 25: Managing Personal Finances

Over 35% of U.S.households do not have a retirement account.

Correct AnswerverifiedShow Answer

House payments tend to rise at a faster rate than do rent payments on a similar sized house.

Correct AnswerverifiedShow Answer

Financial planning begins with:

Correct AnswerverifiedShow Answer

Unlike whole life policies,a universal life insurance policy typically invests part of the premium in very aggressive,high-risk assets.

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

One way to motivate yourself to start saving is to visualize your goals and think about how much money it will take to achieve them.

Correct AnswerverifiedShow Answer

If possible,it is almost always better to buy a single home rather than a duplex.

Correct AnswerverifiedShow Answer

Personal financial planners recommend renting a home,rather than incurring the cost of buying a home.

Correct AnswerverifiedShow Answer

The Social Security program was established in:

Correct AnswerverifiedShow Answer

As a recent college graduate just starting out on his own,Greg needs health,disability,car,and auto insurance.He may be able to save money by obtaining an umbrella policy.

Correct AnswerverifiedShow Answer

Whole life insurance premiums provide the insured with both pure insurance and a savings plan.

Correct AnswerverifiedShow Answer

Which of the following is least likely to result from the problems facing the Social Security system?

Correct AnswerverifiedShow Answer

A common purpose of a rider added to a homeowner's policy is to:

Correct AnswerverifiedShow Answer

Young married couples that find themselves running out of money at the end of the month,might be well advised to:

Correct AnswerverifiedShow Answer

Real estate taxes and mortgage interest payments are both:

Correct AnswerverifiedShow Answer

Everything else constant,the higher the deductible on your car insurance policy,the higher the premium for your car insurance.

Correct AnswerverifiedShow Answer

Many employers offer health insurance coverage for their full-time employees.

Correct AnswerverifiedShow Answer

The path to success in a capitalist system is to:

Correct AnswerverifiedShow Answer

Carrie is trying to find a way to reduce her car insurance premium.She would be well advised to decrease her insurance policy's deductible.

Correct AnswerverifiedShow Answer

It is likely that young adults today will benefit from the recent trend in the Social Security system to increase benefits and expand the cost-of-living adjustments.

Correct AnswerverifiedShow Answer

Correct Answer
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Correct Answer
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