Econ Wise Practice Test
Which of the following financial careers are based only on commission?
insurance brokers
Which is the best action to find the lowest price for the amount of insurance needed?
using the internet to compare quotes on similar insurance policies
Contributing to a 401K plan is usually a good way to save for retirement because
some employers match the amount of money employees contribute to the plan
by following the advice to "pay yourself first" a person is getting into the habit of
building wealth through savings
When a person deposits 2,500 into a traditional individual retirement account (IRA), that money is
reported on the persons federal income tax return as
an allowable deduction
which of the following correctly describes the role of the professional working in a financial institution
Broker: buy and sell stocks, bonds, mutual funds.
the main advantage for paying with a money order instead of paying with a personal check is that
a person does not have to have a bank account to get a money order
which of the following is a true statement about the cost of a loan?
the longer the loan repayment period, the lower the monthly payment and the higher the total cost
of the loan
the main reason for buying life insurance is to provide money to the
beneficiaries of the insured person in case of his death
the interest rates charged on the majority of credit cards are based upon variable APR's. This means
that the interest rates
can increase as the prime rate increases
when a person decides to add collision insurance to her policy, the premium will
increase
by moving money from a checking account that doesn't give interest to a CD, a person is sacrificing
some
liquidity for earnings
a person who is planning to retire can receive income from all of the following sources except
term life insurance
, the stock of a well known company with a long record of profits, growth and dividend payment and a
reputation for quality management, products and services is considered a
blue chip stock
a married couple plans to send their daughter to a private college when she graduated high school in
twelve years. what type of investment is generally recommended for the couple to save for their
daughters college education
aggressive growth
Sharon and Tim have the exact same car and the bought the same insurance policy from the
insurance broker. Sharon pays a lower premium than Tim. An explanation for this is that the insurance
company
is taking less risk on Sharon
the credit card act of 2009 requires credit card companies to
stay at least 1000 feet away from the college campus
credit card companies are now restricted from
offering gifts to attract student applications
a change in interest rates is a result of influence by the
FED
using a credit card creates
debt
a flat screen TV worth $900 was stolen, the person had rentals insurance with a $100 deductible. how
much is the $900 insured?
$100
a person buys a home for $300,000. The person makes a down payment of $100,000 at the time of
purchase and has a mortgage for $200,000. How much mortgage insurance is advisable?
$200,000
a single uninsured person with no dependents should consider buying insurance that protects her in
case of...
losses resulting in a disability
if a person has a $250 deductible on a homeowners insurance policy, it means that the.....
person will have to pay $250 before the insurance company pays any claims
A homeowner generally buys homeowners insurance because it provides protection by helping to
cover the cost of...
rebuilding the home and replacing contents in the event of damage
Which of the following financial careers are based only on commission?
insurance brokers
Which is the best action to find the lowest price for the amount of insurance needed?
using the internet to compare quotes on similar insurance policies
Contributing to a 401K plan is usually a good way to save for retirement because
some employers match the amount of money employees contribute to the plan
by following the advice to "pay yourself first" a person is getting into the habit of
building wealth through savings
When a person deposits 2,500 into a traditional individual retirement account (IRA), that money is
reported on the persons federal income tax return as
an allowable deduction
which of the following correctly describes the role of the professional working in a financial institution
Broker: buy and sell stocks, bonds, mutual funds.
the main advantage for paying with a money order instead of paying with a personal check is that
a person does not have to have a bank account to get a money order
which of the following is a true statement about the cost of a loan?
the longer the loan repayment period, the lower the monthly payment and the higher the total cost
of the loan
the main reason for buying life insurance is to provide money to the
beneficiaries of the insured person in case of his death
the interest rates charged on the majority of credit cards are based upon variable APR's. This means
that the interest rates
can increase as the prime rate increases
when a person decides to add collision insurance to her policy, the premium will
increase
by moving money from a checking account that doesn't give interest to a CD, a person is sacrificing
some
liquidity for earnings
a person who is planning to retire can receive income from all of the following sources except
term life insurance
, the stock of a well known company with a long record of profits, growth and dividend payment and a
reputation for quality management, products and services is considered a
blue chip stock
a married couple plans to send their daughter to a private college when she graduated high school in
twelve years. what type of investment is generally recommended for the couple to save for their
daughters college education
aggressive growth
Sharon and Tim have the exact same car and the bought the same insurance policy from the
insurance broker. Sharon pays a lower premium than Tim. An explanation for this is that the insurance
company
is taking less risk on Sharon
the credit card act of 2009 requires credit card companies to
stay at least 1000 feet away from the college campus
credit card companies are now restricted from
offering gifts to attract student applications
a change in interest rates is a result of influence by the
FED
using a credit card creates
debt
a flat screen TV worth $900 was stolen, the person had rentals insurance with a $100 deductible. how
much is the $900 insured?
$100
a person buys a home for $300,000. The person makes a down payment of $100,000 at the time of
purchase and has a mortgage for $200,000. How much mortgage insurance is advisable?
$200,000
a single uninsured person with no dependents should consider buying insurance that protects her in
case of...
losses resulting in a disability
if a person has a $250 deductible on a homeowners insurance policy, it means that the.....
person will have to pay $250 before the insurance company pays any claims
A homeowner generally buys homeowners insurance because it provides protection by helping to
cover the cost of...
rebuilding the home and replacing contents in the event of damage
