Personal Finance
Final Exam Review #2
Name: ____________________________________________
FINAL EXAM REVIEW #2
(Find the chapter references in parenthesis at the end of each question)
#1-9: True/False
____
1. Interest rates provide an indicator of how well people are living. (1)
____
2. Fraud is a dishonest business practice meant to gain an unfair advantage. (4)
____
3. A credit union is a financial institution that is owned by its members. (5)
____
4. Overdraft protection is an automatic loan made to an account if the balance will not cover the
checks written. (5)
____
5. A mortgage is an example of a closed-end credit. (6)
____
6. The amount that one share of a mutual fund is worth is called its net asset value. (10)
____
7. Property tax is the primary source of revenue for the federal government. (12)
____
8. If your neighbor slips and falls on your sidewalk, you may be found liable. (13)
#10-15: Multiple Choice
____ 10. The amount of goods and services available for sale is called ____. (1)
a. demand
c. supply
b. reserve
d. economy
____ 11. A person joins an insurance company by purchasing a contract called a ____. (13)
a. premium
c. policy
b. fee
d. claim
____ 12. In insurance, anything that may possibly cause a loss is known as a ____. (13)
a. risk
c. hazard
b. peril
d. liability
____ 13. A household inventory is ____. (13)
a. insurance that covers a specific item
b. coverage that protects your residence
c. documentation of personal belongings
d. additional living expenses
Personal Finance
Final Exam Review #2
____14.A disadvantage of renting is ____. (7)
a. more responsibilities
b. high initial costs
Name: ____________________________________________
c. restricted activities
d. eligibility for tax deductions
____ 15. A driver’s insurance premium rates will probably increase if he or she ____. (13)
a. moves to a rural area
b. buys an auto that requires simple repairs
c. takes a driver training course
d. receives several traffic tickets
#16-22: Short Answer (vocab)
16. The cost of credit on a yearly basis, expressed as a percentage. (6)
17. The income a person receives. (6)
18. An entity (bank, finance company, credit union, business, or individual) to which money
is owed. (6)
19. A last resort legal process in which some or all of the assets. (6)
20. A time period during which no finance charges are added to a credit card account. (6)
21. Sells its shares openly in stock markets where anyone can buy them. (9)
22. Remains stable during periods of decline in the economy. (9)