Unit 7 Test

Last updated almost 4 years ago

24 questions

2

5

Library

Unit 7 Test

Last updated almost 4 years ago

24 questions

2

5

Charles has $10,000 worth of property damage insurance and a $1,000 deductible collision
insurance policy. He had a tire blowout while driving and crashed into a $1,400 fire hydrant. The
crash caused $1,600 in damages to his car.

Explain how much will the insurance company pay? Explain how much will Charles pay?

5

A new car sells for $27,300. It exponentially depreciates at a rate of 6.1%. How much is the car worth after 3 years? Round your answer to the nearest hundreth.

Use the depreciation formula:

A rental agreement is often referred to as:

An amenity

A lease

Renters insurance

A mortgage

Ashley plans to do some of her Christmas shopping online. What is a safety tip to follow when she is
shopping online?

Use a debit card

Shred all sales receipts as soon as the item purchased has been received

Black out the bank account numbers on the credit card bill before returning it with
payment.

Use a credit card

Tiffany was recently involved in a vehicle accident. In order to get her car fixed, her insurance
company is requiring her to pay the first $500 of the repair bill because:

Her policy's deductible is $500

The cost of the repairs is higher than her policy covers

She will be reimbursed by the insurance company later

She did not call her agent and report the accident quickly enough

James received his first medical bill of the year. It was a total of $1000. His health insurance policy
has a $500 deductible and a 20% co-insurance. How much of the medical bill will Jade be
responsible to pay?

$0, insurance will cover the entire medical bill

$500

$700

$600

Melissa needs to get a vehicle and is considering leasing one. This means:

She would be purchasing the vehicle by making payments over time.

Her depreciation costs will likely be higher.

She would be renting the vehicle by making payments over time and the vehicle
title would remain with the lease grantor.

She will need to pay a larger down payment to offset the lease agreement fees.

Alyssa is considering purchasing a car and wants to be sure she can afford to drive it during the
school year when she doesn't have a job. Which expense WOULD NOT be considered part of the
total transportation expenses:

Depreciation

Parking

Automobile payment

Fuel

If a person drives an automobile, they are required by law to have Automobile Liability insurance.
In which situation would this type of policy protect the policyholder?

James backed into a vehicle in the grocery store parking lot and caused $3000 in damage
to another vehicle.

An uninsured driver ran a stoplight, hit James' car, and caused $2000 in damages to
James' car and $3000 in damage to his own vehicle.

James hit a deer while driving to work on a foggy morning, killing the deer and causing
$2000 in damage to his car.

James car was in the parking lot at work during a severe hailstorm where $2000 damage
was done to his vehicle.

Eric has chosen Amanda to be the beneficiary of his life insurance policy. What does this mean for
Amanda?

Amanda will receive a commission from selling Eric his life insurance policy.

Amanda will receive any proceeds if Eric dies.

Amanda is required to serve as the executor of Eric's estate.

Amanda must pay the insurance premiums to keep the policy in effect.

Chad has decided to rent an apartment and is gathering information to be sure he has enough money
saved for all the expenses when he moves in. His landlord explained to him that he would need to
pay a fee to cover any potential damages that might occur while Chad is living in the apartment.
This fee is called the:

Security deposit

Rental agreement

Amenities

Down payment

When Bryce attempted to borrow money at the bank, he learned that his credit score is low. Which
statement best describes what this is likely to mean for Bryce?

The interest rates on his loan will be higher, since his credit score is low.

The monthly loan payments will be lower due to his lower credit score.

The interest rates on his loan will be lower, since his credit score is low

The purchase price of the item he needs the loan for will be higher due to his low credit
score.

Rent is defined as:

The fee charged for performing property management tasks

An advance payment for the costs beyond normal wear and tear

The cost of using someone else's property

The purchase price of a housing unit

Insurance can be purchased to protect one from which of the following losses?

Stock market losses

Health care expenses

Maintaining the price of your home

Car maintenance

When making food decisions, which of the following is most likely to be least expensive?

Fast food restaurants

Convenience foods

Making food from scratch

Full-service restaurants

Becky no longer wants to use her Clothes‐R‐Us store credit card. What is the best thing she could do
with the credit card?

File the credit card away for use at a later time.

Keep the credit card in her wallet in case she needs proof of identification.

Let a family member take over the credit account so her credit score will not be affected.

Close the account by phone and in writing, then destroy the card.

How much of your net income (after tax income) should you put away for savings?

At least 7%

At least 8%

At least 9%

At least 10%

Which of the following is an act of identity theft?

Receiving permission to use a parent’s credit card for school clothes

Taking the identity of another individual as inspiration for a costume

Wrongfully acquiring and using someone’s personal identification

Having the same name as another person

When may a person view his/her credit report for free?

At any time and an unlimited number of times

If a person has sufficient financial resources

A person may not review his/her credit report

Once a year, from each of the three main credit reporting agencies

Evan is writing a scholarship essay about the importance of responsible money management. He
wants to explain the meaning of borrowing. Which statement below would explain the importance of
understanding the process of borrowing money?

Borrowing is not part of a financial plan.

When you are borrowing, you are spending future income.

Borrowing strongly affects the present self but has less impact on the future self.

Borrowing builds a strong credit history because it requires individuals to file a credit
report.

Maggie will need to pay $120 per month in order to purchase a health insurance policy. This
monthly payment is known as the:

Deductible

Premium

Co-insurance

Moral hazard

The equity that you build by making mortgage payments is:

Purchasing a housing unit as rental property

The value of the home after the mortgage debt is subtracted

A home loan where the real estate is collateral

The amount of money paid on the home at the time of purchase

Charles has $10,000 worth of property damage insurance and a $1,000 deductible collision
insurance policy. He had a tire blowout while driving and crashed into a $1,400 fire hydrant. The
crash caused $1,600 in damages to his car.

Which insurance covers the fire hydrant?

Property Damage

Comprehensive

Collision

Not covered since the hydrant is owned by the city.

Charles has $10,000 worth of property damage insurance and a $1,000 deductible collision
insurance policy. He had a tire blowout while driving and crashed into a $1,400 fire hydrant. The
crash caused $1,600 in damages to his car.

Which insurance covers the damage to Charles car?

Property Damage

Collision

Liability

Not covered since the accident was caused by a tire blowout. 

Charles has $10,000 worth of property damage insurance and a $1,000 deductible collision
insurance policy. He had a tire blowout while driving and crashed into a $1,400 fire hydrant. The
crash caused $1,600 in damages to his car.

Explain how much will the insurance company pay? Explain how much will Charles pay?

A new car sells for $27,300. It exponentially depreciates at a rate of 6.1%. How much is the car worth after 3 years? Round your answer to the nearest hundreth.

Use the depreciation formula:

A rental agreement is often referred to as:

An amenity

A lease

Renters insurance

A mortgage

Ashley plans to do some of her Christmas shopping online. What is a safety tip to follow when she is
shopping online?

Use a debit card

Shred all sales receipts as soon as the item purchased has been received

Black out the bank account numbers on the credit card bill before returning it with
payment.

Use a credit card

Tiffany was recently involved in a vehicle accident. In order to get her car fixed, her insurance
company is requiring her to pay the first $500 of the repair bill because:

Her policy's deductible is $500

The cost of the repairs is higher than her policy covers

She will be reimbursed by the insurance company later

She did not call her agent and report the accident quickly enough

James received his first medical bill of the year. It was a total of $1000. His health insurance policy
has a $500 deductible and a 20% co-insurance. How much of the medical bill will Jade be
responsible to pay?

$0, insurance will cover the entire medical bill

$500

$700

$600

Melissa needs to get a vehicle and is considering leasing one. This means:

She would be purchasing the vehicle by making payments over time.

Her depreciation costs will likely be higher.

She would be renting the vehicle by making payments over time and the vehicle
title would remain with the lease grantor.

She will need to pay a larger down payment to offset the lease agreement fees.

Alyssa is considering purchasing a car and wants to be sure she can afford to drive it during the
school year when she doesn't have a job. Which expense WOULD NOT be considered part of the
total transportation expenses:

Depreciation

Parking

Automobile payment

Fuel

If a person drives an automobile, they are required by law to have Automobile Liability insurance.
In which situation would this type of policy protect the policyholder?

James backed into a vehicle in the grocery store parking lot and caused $3000 in damage
to another vehicle.

An uninsured driver ran a stoplight, hit James' car, and caused $2000 in damages to
James' car and $3000 in damage to his own vehicle.

James hit a deer while driving to work on a foggy morning, killing the deer and causing
$2000 in damage to his car.

James car was in the parking lot at work during a severe hailstorm where $2000 damage
was done to his vehicle.

Eric has chosen Amanda to be the beneficiary of his life insurance policy. What does this mean for
Amanda?

Amanda will receive a commission from selling Eric his life insurance policy.

Amanda will receive any proceeds if Eric dies.

Amanda is required to serve as the executor of Eric's estate.

Amanda must pay the insurance premiums to keep the policy in effect.

Chad has decided to rent an apartment and is gathering information to be sure he has enough money
saved for all the expenses when he moves in. His landlord explained to him that he would need to
pay a fee to cover any potential damages that might occur while Chad is living in the apartment.
This fee is called the:

Security deposit

Rental agreement

Amenities

Down payment

When Bryce attempted to borrow money at the bank, he learned that his credit score is low. Which
statement best describes what this is likely to mean for Bryce?

The interest rates on his loan will be higher, since his credit score is low.

The monthly loan payments will be lower due to his lower credit score.

The interest rates on his loan will be lower, since his credit score is low

The purchase price of the item he needs the loan for will be higher due to his low credit
score.

Rent is defined as:

The fee charged for performing property management tasks

An advance payment for the costs beyond normal wear and tear

The cost of using someone else's property

The purchase price of a housing unit

Insurance can be purchased to protect one from which of the following losses?

Stock market losses

Health care expenses

Maintaining the price of your home

Car maintenance

When making food decisions, which of the following is most likely to be least expensive?

Fast food restaurants

Convenience foods

Making food from scratch

Full-service restaurants

Becky no longer wants to use her Clothes‐R‐Us store credit card. What is the best thing she could do
with the credit card?

File the credit card away for use at a later time.

Keep the credit card in her wallet in case she needs proof of identification.

Let a family member take over the credit account so her credit score will not be affected.

Close the account by phone and in writing, then destroy the card.

How much of your net income (after tax income) should you put away for savings?   

At least 7%

At least 8%

At least 9%

At least 10%

Which of the following is an act of identity theft?

Receiving permission to use a parent’s credit card for school clothes

Taking the identity of another individual as inspiration for a costume

Wrongfully acquiring and using someone’s personal identification

Having the same name as another person

When may a person view his/her credit report for free?

At any time and an unlimited number of times

If a person has sufficient financial resources

A person may not review his/her credit report

Once a year, from each of the three main credit reporting agencies

Evan is writing a scholarship essay about the importance of responsible money management. He
wants to explain the meaning of borrowing. Which statement below would explain the importance of
understanding the process of borrowing money?

Borrowing is not part of a financial plan.

When you are borrowing, you are spending future income.

Borrowing strongly affects the present self but has less impact on the future self.

Borrowing builds a strong credit history because it requires individuals to file a credit
report.

Maggie will need to pay $120 per month in order to purchase a health insurance policy. This
monthly payment is known as the:

Deductible

Premium

Co-insurance

Moral hazard

The equity that you build by making mortgage payments is:

Purchasing a housing unit as rental property

The value of the home after the mortgage debt is subtracted

A home loan where the real estate is collateral

The amount of money paid on the home at the time of purchase

Charles has $10,000 worth of property damage insurance and a $1,000 deductible collision
insurance policy. He had a tire blowout while driving and crashed into a $1,400 fire hydrant. The
crash caused $1,600 in damages to his car.

Which insurance covers the fire hydrant?

Property Damage

Comprehensive

Collision

Not covered since the hydrant is owned by the city.

Charles has $10,000 worth of property damage insurance and a $1,000 deductible collision
insurance policy. He had a tire blowout while driving and crashed into a $1,400 fire hydrant. The
crash caused $1,600 in damages to his car.

Which insurance covers the damage to Charles car?

Property Damage

Collision

Liability

Not covered since the accident was caused by a tire blowout. 

Unit 7 Test

Unit 7 Test

A new car sells for $27,300. It exponentially depreciates at a rate of 6.1%. How much is the car worth after 3 years? Round your answer to the nearest hundreth. Use the depreciation formula:

A rental agreement is often referred to as:

Ashley plans to do some of her Christmas shopping online. What is a safety tip to follow when she isshopping online?

Tiffany was recently involved in a vehicle accident. In order to get her car fixed, her insurancecompany is requiring her to pay the first $500 of the repair bill because:

James received his first medical bill of the year. It was a total of $1000. His health insurance policyhas a $500 deductible and a 20% co-insurance. How much of the medical bill will Jade beresponsible to pay?

Melissa needs to get a vehicle and is considering leasing one. This means:

Alyssa is considering purchasing a car and wants to be sure she can afford to drive it during theschool year when she doesn't have a job. Which expense WOULD NOT be considered part of thetotal transportation expenses:

If a person drives an automobile, they are required by law to have Automobile Liability insurance.In which situation would this type of policy protect the policyholder?

Eric has chosen Amanda to be the beneficiary of his life insurance policy. What does this mean forAmanda?

When Bryce attempted to borrow money at the bank, he learned that his credit score is low. Whichstatement best describes what this is likely to mean for Bryce?

Rent is defined as:

Insurance can be purchased to protect one from which of the following losses?

When making food decisions, which of the following is most likely to be least expensive?

Becky no longer wants to use her Clothes‐R‐Us store credit card. What is the best thing she could dowith the credit card?

How much of your net income (after tax income) should you put away for savings?

Which of the following is an act of identity theft?

When may a person view his/her credit report for free?

Evan is writing a scholarship essay about the importance of responsible money management. Hewants to explain the meaning of borrowing. Which statement below would explain the importance ofunderstanding the process of borrowing money?

Maggie will need to pay $120 per month in order to purchase a health insurance policy. Thismonthly payment is known as the:

The equity that you build by making mortgage payments is:

Charles has $10,000 worth of property damage insurance and a $1,000 deductible collisioninsurance policy. He had a tire blowout while driving and crashed into a $1,400 fire hydrant. Thecrash caused $1,600 in damages to his car.Which insurance covers the fire hydrant?

Charles has $10,000 worth of property damage insurance and a $1,000 deductible collisioninsurance policy. He had a tire blowout while driving and crashed into a $1,400 fire hydrant. Thecrash caused $1,600 in damages to his car.Which insurance covers the damage to Charles car?

A new car sells for $27,300. It exponentially depreciates at a rate of 6.1%. How much is the car worth after 3 years? Round your answer to the nearest hundreth. Use the depreciation formula:

A new car sells for $27,300. It exponentially depreciates at a rate of 6.1%. How much is the car worth after 3 years? Round your answer to the nearest hundreth.

Use the depreciation formula:

Ashley plans to do some of her Christmas shopping online. What is a safety tip to follow when she is
shopping online?

Tiffany was recently involved in a vehicle accident. In order to get her car fixed, her insurance
company is requiring her to pay the first $500 of the repair bill because:

James received his first medical bill of the year. It was a total of $1000. His health insurance policy
has a $500 deductible and a 20% co-insurance. How much of the medical bill will Jade be
responsible to pay?

Alyssa is considering purchasing a car and wants to be sure she can afford to drive it during the
school year when she doesn't have a job. Which expense WOULD NOT be considered part of the
total transportation expenses:

If a person drives an automobile, they are required by law to have Automobile Liability insurance.
In which situation would this type of policy protect the policyholder?

Eric has chosen Amanda to be the beneficiary of his life insurance policy. What does this mean for
Amanda?

When Bryce attempted to borrow money at the bank, he learned that his credit score is low. Which
statement best describes what this is likely to mean for Bryce?

Becky no longer wants to use her Clothes‐R‐Us store credit card. What is the best thing she could do
with the credit card?

Evan is writing a scholarship essay about the importance of responsible money management. He
wants to explain the meaning of borrowing. Which statement below would explain the importance of
understanding the process of borrowing money?

Maggie will need to pay $120 per month in order to purchase a health insurance policy. This
monthly payment is known as the:

Charles has $10,000 worth of property damage insurance and a $1,000 deductible collision
insurance policy. He had a tire blowout while driving and crashed into a $1,400 fire hydrant. The
crash caused $1,600 in damages to his car.

Which insurance covers the fire hydrant?

Charles has $10,000 worth of property damage insurance and a $1,000 deductible collision
insurance policy. He had a tire blowout while driving and crashed into a $1,400 fire hydrant. The
crash caused $1,600 in damages to his car.

Which insurance covers the damage to Charles car?

A new car sells for $27,300. It exponentially depreciates at a rate of 6.1%. How much is the car worth after 3 years? Round your answer to the nearest hundreth.

Use the depreciation formula: