Consumer and Personal Finance Test

Question 1

Define Budget.

Answer 1

a plan for how to save and spend your income

Question 2

Define Checking Account

Answer 2

used for immediate purchase; convenient way to keep up with your money

Question 3

Define Claim

Answer 3

request for payment on a loss

Question 4

Define Co-Pay

Answer 4

amount due when a person receives health care

Question 5

Define Credit

Answer 5

a practice of buying goods and services now and paying for them in the future

Question 6

Define Credit Report

Answer 6

a statement that details one’s credit record

Question 7

Define Deductible

Answer 7

an amount paid by the person before the insurance company will pay

Question 8

Credit Score

Answer 8

idk number assigned to designate someone’s creditworthiness

Question 9

Define Identity Theft

Answer 9

how people can steal your social security number or credit card number and use money on things

Question 10

Define income

Answer 10

Money payment for the use of one’s productive services

Question 11

Define Interest

Answer 11

the money the bank charges you for loaning money

Question 12

Define Pension Plan

Answer 12

an employer/sponsor promises a specified monthly benefit on retirement that is predetermined by the employee’s earnings history, length of service and age

Question 13

Define Premium

Answer 13

amount you pay for insurance coverage

Question 14

Define Savings Account

Answer 14

-used for future purchases; convenient way to store money

Question 15

Define Wages/Salary

Answer 15

2 forms of income. Wages (hourly) Salary (yearly)

Question 16

Define Withdraw

Answer 16

taking away/taking out money from a bank account

Question 17

Define Work Ethic

Answer 17

set of values vases upon hard work and diligence; belief in the moral benefit of work and its ability to enhance character

Question 18

What are the characteristics of credit cards?

Answer 18

• bonuses and rewards (good)
• annual fees
• Interest(Minimum Finance Charge)
• Cash Advance Fee
• late fees(bad)

Question 19

What causes interest rates to vary with credit cards?

Answer 19

paying bill late

Question 20

What are examples of bonuses/rewards offered by credit card companies?

Answer 20

• cash back
• airline miles
• discounts on merchandise

Question 21

What are common techniques of identity theft?

Answer 21

Dumpster Diving
Mail Theft
Stealing personal items
Etc…

Question 22

How does debt consolidation help solve credit problems?

Answer 22

it is a loan to consolidate all outstanding debts; lower fixed interest rate

Question 23

What are examples of fixed expenses?

Answer 23

• insurance
• phone bill
• TV bill

Question 24

What are examples of variable expenses?

Answer 24

• grocery shopping
• gas
• dining out

Question 25

What are examples of irregular yearly expenses?

Answer 25

- new fridge - new tires for car - hospital expense

Question 26

What resources are available to help you choose a career?

Answer 26

- occupational Outlook Handbook - Aptitude Tests - Counseling Center/College Advisor

Question 27

How can people gain education and training necessary for the workplace?

Answer 27

- college/University - apprenticeship - vocational training - specialized training

Question 28

What workforce readiness skills do employers look for?

Answer 28

- professionalism - Oral and Written Communication - Teamwork/Collaboration - Critical Thinking/Problem Solving

Question 29

What are the types of insurance?

Answer 29

Car, Health, Homeowner, Renter's, Disability, Life

Question 30

What does Car Insurance Protect and pay?

Answer 30

Protects vehicle and people in vehicle in case of accident or theft

Question 31

What does Health Insurance Protect and Pay?

Answer 31

Protects policy holder and dependents in the event of illness or injury. Pays for doctors, hospital visits and medicines

Question 32

What does Homeowners insurance protect and pay?

Answer 32

Protects Structures and land and personal property. Pays for fire, theft, or natural disaster damage.

Question 33

What does Renters insurance protect and pay?

Answer 33

Protects personal property. Pays for loss of or damage to personal items

Question 34

What does Disability protect and pay?

Answer 34

Protects income when person cant work. Pays percentage of income when a person cant work due to injury or illness.

Question 35

What does life insurance pay for and protect?

Answer 35

It protects family when a wage earner dies and pays for money to meet expenses after death.