True/False
Indicate whether the statement is true or
false.
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1.
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The market value of a stock is set by the company that issues the stock.
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2.
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Real estate refers to various types of insurance consumers buy.
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3.
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As a person pays off a mortgage, equity in the home increases.
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4.
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Collecting sport trading cards, stamps, and antiques may be a form of
investment.
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5.
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A consumer is a person who buys and uses goods or services.
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6.
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The Good Housekeeping Seal promises the product will be replaced or your money
will be refunded if the product is found to be defective within one year of purchase.
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7.
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One of the least effective sources of consumer information is information from a
consumer who has already purchased the product or service you are interested in buying.
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8.
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Better Business Bureaus are supported by the federal govenment and dues paid by
member consumers.
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9.
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As a wise consumer, you should always try to examine a product before you buy it
and make sure it will satisfy your needs.
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10.
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A business’s reputation is not important to consider when selecting a
place to make a purchase.
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11.
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The smart consumer takes time to plan purchases and buys at the right
time.
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12.
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One of the best ways to avoid impluse buying is to make a shopping list and
stick to it.
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13.
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The Food and Drug Administration makes certain that food, drug, and cosmetic
products are not harmful to consumers.
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14.
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A guarantee will cover damages caused by product misuse.
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15.
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In being a reasonable consumer, you should be sure you have cause for a
complaint before you make it known.
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16.
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Forgery is a crime.
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17.
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A bank statement provides a summary of activities for a checking account,
usually covering a one-month period.
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18.
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Loan credit is available from several kinds of financial institutions.
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19.
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Businesses avoid long-term credit because it is bad for business.
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20.
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The use of credit does not generally result in overbuying.
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21.
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Finance charges are often added to the amount that is owed on credit
purchases.
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22.
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Credit cards avoid the necessity of carrying large amounts of money when
traveling.
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23.
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Your credit rating is not important when applying for a credit card.
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24.
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You should consider the total cost of credit before borrowing money or opening a
charge account.
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25.
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A three-month loan made on January 5 would be due on April 5.
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26.
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When you borrow money, you may want to repay the loan in several partial
payments instead of one large single payment.
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27.
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Being creditworthy means that you have good grades, drive safely, and have a
part-time job.
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28.
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It is not necessary nor important to fill in every blank on a credit application
form.
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29.
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Present and former employers are often contacted to verify information written
on credit application forms.
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30.
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If you cannot make your payments as agreed upon, the first thing you should do
is contact your creditors and explain your situation.
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31.
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Governments may borrow money to build parks and highways.
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32.
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When a person saves money in a bank or other financial institution, those funds
are commonly borrowed by others.
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33.
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The more frequently compounding occurs, the faster a person’s savings will
grow.
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34.
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Simple interest usually results in higher earnings than compound
interest.
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35.
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Most financial institutions have insurance that protects the savings of
depositors.
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36.
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A minimum deposit is commony required for a certificate of deposit.
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37.
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If you are very careful, you will be able to avoid all losses.
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38.
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Large economic losses can be avoided by sharing the loss with other
people.
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39.
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Policyholders should know exactly what protection is provided by the kinds of
insurance they have.
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40.
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An important part of an insurance agent’s job is to help you select the
proper kind of protection from economic loss.
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41.
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Premiums collected by insurance companies are invested.
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42.
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Insurance rates are basically the same from all automobile insurance
companies.
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43.
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The cost of insurance is usually lower when one of the drivers in the
insured’s family is under age 30.
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44.
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Most car owners buy package policies that include most or all of the necessary
automobile insurance coverage.
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45.
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Distance to the nearest fire department and water supply can influence the
amount of premiums for homeowners insurance.
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46.
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Because property values increase over the years, property owners should review
the value of their property and insurance coverage every few years.
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47.
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Renters have many of the same property and liability insurance needs as
homeowners.
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48.
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The FDIC determines the interest rates banks charge for loans.
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49.
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Mortgage companies are most helpful when a person borrows to buy a home.
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50.
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Safe-deposit boxes allow savers to earn interest on their money.
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51.
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Checks are usually not considered to be a safe method for making
payments.
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52.
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A regular checking account commonly earns interest.
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53.
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A signature card must be completed for each deposit.
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54.
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A joint account requires that both account owners sign checks.
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55.
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An endorsement refers to the time between the receipt of a deposit and the
availability of the funds.
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56.
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A policyholder is the person who must rely on another for financial
support.
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57.
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With term insurance, if the insured does not die during the period for which the
life insurance policy was purchased, the insurance company is not required to pay anything.
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58.
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With level term insurance, the amount of protection and the premiums remain the
same while the insurance is in effect.
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59.
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Whole life is permanent insurance that extends over the lifetime of the
insured.
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60.
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To have an insurable interest in the life of another person, you must receive
some kind of financial benefits from that person’s continued life.
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61.
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When an illness or injury requires you to be hospitalized, hospital insurance
usually pays most or all of the charges for your room, food, and hospital expenses.
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62.
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HMOs emphasize preventative health care.
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63.
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Social Security is paid only by employees.
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64.
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To buy wisely you must gather information carefully before making a
purchase.
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65.
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A budget allows you to meet your personal goals with a system of saving and wise
spending.
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66.
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Financial goals are short-term or long-term objectives stated in dollar
terms.
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67.
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Variable expenses are living costs that occur regularly and are for the same
amount each time.
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68.
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A financial inventory includes a careful appraisal of your finances.
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69.
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A successful budget should be evaluated regularly.
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70.
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The best spending plan should be written so everyone affected by it can review
the plan.
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