Understanding Needs, Wants, and Costs

Front

What is the difference between a need and a want when evaluating spending decisions?

Back

A need is essential for survival, while a want is something you can live without.

Tags

TX.§113.49.C.1.A.

Front

Which of the following is a strategy to reduce the total cost of borrowing?
Making a lower down payment,
Making a higher down payment,
Extending the loan term,
Increasing the interest rate

Back

Making a higher down payment

Tags

TX.§113.49.C.10.B.

Front

What is a premium in insurance terminology?

Back

The amount paid by the policyholder to maintain coverage.

Tags

TX.§113.49.C.12.A.

Front

Which of the following taxes is deducted from paychecks? Sales tax, Property tax, Federal Insurance Contributions Act (FICA), Value-added tax (VAT)

Back

Federal Insurance Contributions Act (FICA)

Tags

TX.§113.49.C.3.B.

Front

What does a deductible refer to in insurance terms?

Back

The amount the policyholder pays out of pocket before insurance covers the rest

Tags

TX.§113.49.C.12.A.

Front

How can making additional principal payments reduce the total cost of borrowing?

Back

By reducing the loan term and interest paid over time

Tags

TX.§113.49.C.10.B.

Front

What is a co-pay in insurance terminology?

Back

A fixed amount paid by the policyholder for a covered service.

Tags

TX.§113.49.C.12.A.

Front

Which of the following is considered a want rather than a need? Food, Water, Designer clothing, Shelter

Back

Designer clothing

Tags

TX.§113.49.C.1.A.

Front

What is the purpose of federal income taxes deducted from paychecks?

Back

To fund federal government operations

Tags

TX.§113.49.C.3.B.

Front

What does policy limit mean in insurance terminology?

Back

The maximum amount the insurance will pay for a covered loss.

Tags

TX.§113.49.C.12.A.