Chapter 7-9

Question 0

T or F: Learning to be quiet is actually a powerful tool in negotiation

Answer 0

True

Question 1

T or F: Most of the items at a pawn shop are stolen

Answer 1

False

Question 2

T or F: In certain circumstances, it is okay to stretch the truth to get a bargain

Answer 2

False

Question 3

What is a win-win deal

Answer 3

Where the buyer and seller are satisfied

Question 4

The first key to getting a huge bargain is learning to…

Answer 4

Negotiate

Question 5

Proverbs 20:14

Answer 5

“It’s no good, it’s no good!” says the buyer, then goes off and boasts about the purchase

Question 6

Matthew 5:33

Answer 6

Moses says keep your oaths, Jesus says “Let your “yes” be yes and your “no” be no.”
- Anything other than this comes from the evil one

Question 7

What is the phrase to get a better deal

Answer 7

“It’s not good enough.”

Question 8

What are the two tips for refunding

Answer 8

1. Send in the application in on time

2. Follow the instructions carefully

Question 9

Integrity

Answer 9

Having to do with a person’s honesty and moral attributes

Question 10

Consignment Shop

Answer 10

Retail stores where people sell items and the owner of the shop gets a percentage of the sale

Question 11

Walk-Away Power

Answer 11

The ability to walk away from a purchase when negotiating

Question 12

Foreclosure

Answer 12

Process by which the holder of a mortgage sells the property of a homeowner who has not made interest and/or principal payments on time as stipulated in the mortgage contract

Question 13

Auction

Answer 13

A public sale in which property or items of merchandise are sold to the highest bidder

Question 14

Markup

Answer 14

The difference between the wholesale price and retail price

Question 15

Estate Sale

Answer 15

Type of yard sale with more items, usually the entire contents of a household

Question 16

Negotiate

Answer 16

To bargain for a lower price

Question 17

T or F: Using cash gives you more bargaining power than using credit

Answer 17

True

Question 18

What does being married to a purchase mean

Answer 18

You want it because you can’t live without it

Question 19

T or F: With virtually all investments, as the risk goes up, so does the potential return

Answer 19

True

Question 20

T or F: It’s okay to borrow money if you are going to invest it

Answer 20

False

Question 21

What is the percentage of inflation in taxes

Answer 21

6%

Question 22

What is a CD

Answer 22

Certificate of Deposit

Question 23

What is a Certificate of Deposit

Answer 23

A savings account with a slightly higher interest rate because of a longer savings commitment

Question 24

No more than ___ of your money should go in single stocks

Answer 24

10%

Question 25

Bond

Answer 25

A debt instrument by which the company owes you money

Question 26

What is the benefit of Roth IRA

Answer 26

It is funded after-tax money

Question 27

After tax

Answer 27

You've already paid tax so you don't have to pay tax

Question 28

Annuity

Answer 28

A savings account sold by an insurance company

Question 29

What is the least liquid consumer investment

Answer 29

Real estate

Question 30

What are common employee benefits

Answer 30

Retirement plans, insurance, leave (vacation,sick,etc.)

Question 31

401(k)

Answer 31

A retirement savings plan offered by a corporation to its employees

Question 32

403(b)

Answer 32

Retirement savings that is found in non profit organizations

Question 33

457

Answer 33

Available for government employees

Question 34

Portfolio

Answer 34

A list of your investments

Question 35

Liquidity

Answer 35

Quality of an asset that permits it to be converted quickly into cash without loss of value

Question 36

Share

Answer 36

A piece of ownership in a company, mutual fund or other investment

Question 37

Mutual Fund

Answer 37

Pool of money managed by an investment company and invested in multiple companies

Question 38

IRA

Answer 38

Tax-deferred arrangement for individuals with earned income; individual retirement arrangement

Question 39

Why wouldn't a single stock be a good place to keep your emergency fund

Answer 39

It's too risky

Question 40

T or F: Diversification lowers risk with investing

Answer 40

True

Question 41

When do you need life insurance

Answer 41

When other people depend on your income

Question 42

Insurance

Answer 42

Protects your money

Question 43

Investment

Answer 43

Makes you money

Question 44

What is the purpose of insurance

Answer 44

Transfer risk

Question 45

Gap Insurance

Answer 45

Covers the difference between what you owe on a car and what the insurance company says it is worth

Question 46

How can a teen get a good deal on insurance

Answer 46

1. Get good grades | 2. Take a driver education class

Question 47

What should your minimum auto insurance coverage be

Answer 47

$500,000

Question 48

HSA

Answer 48

Health Savings Account

Question 49

Copayment

Answer 49

An amount of money you pay to help cover a portion of your medical costs

Question 50

You should not buy long-term care insurance until what age

Answer 50

60

Question 51

Your coverage should be for ___ of your current income

Answer 51

65%

Question 52

What is the purpose of life insurance

Answer 52

It replaces your income when you die

Question 53

Premium

Answer 53

Amount you pay monthly, quarterly, semiannually or annually to purchase different types of insurance

Question 54

Deductible

Answer 54

Amount you must pay before you begin receiving any benefit from your insurance company

Question 55

Liability

Answer 55

The state or quality of being obligated according to law or equity

Question 56

T or F: Raising your deductible may be a good option when it comes to lowering your premium, but it is important to do a break-even analysis before making that decision

Answer 56

True

Question 57

What is the phrase for life insurance

Answer 57

Buy term, invest the rest