Financial Literacy

Question 1

The Process of identifying potential situations involving risk and figuring out the best way to avoid or how to quickly recover from losses is called:

Answer 1

risk management

Question 2

Insurance agencies charge higher car insurance rates to young people because:

Answer 2

young people pose a higher risk to insurance companies

Question 3

It is most important to insure yourself against

Answer 3

unaffordable losses

Question 4

The required initial amount you pay before you receive insurance benefits is called the:

Answer 4

deductible

Question 5

Insurance is the number one way you should:

Answer 5

manage risks

Question 6

The #1 leading cause of death among American Teenagers is:

Answer 6

traffic accidents

Question 7

At what age do auto insurance rates typically go down?

Answer 7

25

Question 8

One kind of insurance required in Utah is:

Answer 8

car insurance

Question 9

Most car accidents occur within

Answer 9

3 miles from home

Question 10

A 16-year-old driver is how many more many times likely to have a traffic accident than the general population?

Answer 10

20 times as likely

Question 11

Therefore from the lesson, what is the average monthly premium of an individual health care plan that you can expect to pay when you are older?

Answer 11

75-270

Question 12

What usually happens to the amount of the premium (usually shown on the far right of the website in red) if the deductible is lower? (i.e. would the premium be higher or lower?)

Answer 12

the premium would be higher

Question 13

The difference of a HMO Monthly Policy and a PPO Monthly policy is that HMO’s only provide medical coverage within a specified list of networked hospitals and doctors where as a PPO lets you have more flexibility in choosing which doctors you would like however PPOs cost a lot more per month TorF

Answer 13

True

Question 14

If your health insurance has a high deductible, then the insurance plan probably has:

Answer 14

lower premiums

Question 15

Which of the following about entrepreneurs is ALWAYS TRUE ?

Answer 15

they operate their own business

Question 16

Insurance that continues to provide salary even when you are too ill to work is called:

Answer 16

disability insurance

Question 17

a car is totaled when

Answer 17

The repair costs exceed a certain percentage of the car’s worth.

Question 18

at what age does auto insurance typically decrease

Answer 18

25

Question 19

what auto related insurance is required by the state of Utah

Answer 19

liability

Question 20

Why might you want to buy more insurance than the law requires?

Answer 20

To better protect yourself from a lawsuit or from hefty repair bills.

Question 21

Liability coverage will not cover

Answer 21

your own property damages

Question 22

According to the web site, how do Americans waste billions of dollars a year on auto insurance?

Answer 22

they to not ask for discounts that they are entitled to

Question 23

why would you likely not need comprehensive insurance on a very old car

Answer 23

the premiums would exceed what you would likely be paid for repairs

Question 24

which of the following not make your auto insurance cheaper

Answer 24

being a teenager

Question 25

No fault insurance is

Answer 25

insurance that will help pay for your own medical costs after a car accident regardless of who was at fault for the accident

Question 26

how would raising the deductible on car insurance affect insurance premiums

Answer 26

it would lower the monthly premiums

Question 27

reasons that might cause someone to inspect your credit history (5 answers)

Answer 27

applications for credit, leases, renting an apartment, loans, insurance

Question 28

how many years may bankruptcy information appear on your credit report

Answer 28

7-10 years

Question 29

what is a result of bankruptcy

Answer 29

won't ever be able to get a loan again unless the interest rate is very high or a decade has past

Question 30

skimming is defined as

Answer 30

stealing credit/debit card numbers by using a special storage device when processing your card

Question 31

phishing is defined as

Answer 31

pretending to be a financial institution or company and sending spam or pop-up messages to get you to reveal your personal information

Question 32

what is not an appropriate way to guard against identity theft

Answer 32

refusing to identify yourself on your answering machine

Question 33

what item containing personal information is often used in identify theft

Answer 33

social security card

Question 34

what should you not carry in your wallet

Answer 34

social security card

Question 35

to reduce credit card fraud, experts recommend

Answer 35

reducing your number of credit cards

Question 36

how often should you order your credit report to check on it

Answer 36

at least once per year

Question 37

when should a person open and read all financial statements and bills

Answer 37

as soon as they arrive

Question 38

the purpose of insurance is to

Answer 38

minimize risk

Question 39

it is most important to insure yourself against

Answer 39

unaffordable losses

Question 40

disability insurance provides

Answer 40

income for illness or injury leave

Question 41

two basic types of life insurance policies are

Answer 41

term life & whole life

Question 42

a right not included under the fair credit reporting act is

Answer 42

dismissal of debts that you believe are unfair

Question 43

the equal credit opportunity act does not prohibit discrimination based on

Answer 43

income

Question 44

ponzi schemes usually involve

Answer 44

swindlers paying returns using money from previous investors

Question 45

how much must an item cost for you to possible have rights to cancel a contract

Answer 45

25 dollars

Question 46

renters insurance covers

Answer 46

only the contents of the residence

Question 47

your premiums for auto insurance are not affected by

Answer 47

your religion