FINANCIAL STEWARDSHIP EXAM 2- WEEKLY QUIZZES

The author of Your Money Map suggests all of the following tips to pay off a mortgage more quickly, except: 

shop for the best interest rate

Homebuyers who are looking for a mortgage but can’t pay atleast 20% as a down payment will

Likely pay PMI or a higher interest rate

Which of the following best describes cognitive bias

A tendency in all people to misperceive relevant information

People tend to value the assets they already own above their market price because

the endowment effect

For a homeowner with a mortgage, which of the following payments will be unchanged throughout the loan

Principle+Interest

If lending money involved no risk whatsoever, interest rates would still be charged on debt due to

The cost of loaning funds

A history of your payment of previous obligations is known as a

credit report

Which of the following accounts typically charges the lowest interest

Home loans

When the author of Your Money Map describes the snowball principle, he is referring to

Paying off debt

Which answer is the best example of credit 

Rashida pays for work expenses on an account that charges 12% interest on unpaid balances 

Which of the following is the best reason to take on a loan

The loan increases a person’s earning potential

How much will an insurer pay if you claim a 2,500 loss with a 1000 deductible 

1,500

Which of the following was not discussed as an important detail when buying life insurance

Selecting a policy that bundles with auto and home insurance

Which of the following people most need life insurance

Emma, a primary income earner with a stay at home husband and kids.

The primary purpose of life insurance is to provide

Financial security for dependents in the event of death

The purpose of any insurance, in general, is to

Protect you from financially devasting events.

Which type of insurance provides for the partial replacement of income by employees as a result of accident, illness, etc.?

Disability

Which of the following would likely raise the costs of health insurance premiums? The insured person 

Adds depends to the plan 

Health Savings Accounts are available to people who hold what type of health insurance

High Deductible Health Plan (HDHP)

A standard Homeowners insurance policy does NOT provide full value protection for which of the following

Rare and valuable art

Some common liability risks include

All of the above

Auto insurance premiums would be affected by

All of the above

What type of auto insurance would compensate Emily in the event that hail damaged the roof of her SUV

Part D: Comprehensive