EXTRA Final Exam Review Packet

Personal Finance
Final Exam Review #2
Name: ____________________________________________
(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)