Law Career Prep: Financial Literacy

Front

Which of the following types of insurance assists in covering medical expenses associated with short-term illness and accidents?
Disability insurance,
Health insurance,
Life insurance,
Retirement insurance

Back

Health insurance

Front

Which of the following investments is characterized by the following traits:
• Insured by the FDIC or NCUA
• Lowest interest rate of all investments
• Number of withdrawals per month may be limited
Money market, Traditional savings account, Exchange-traded fund (ETF), Certificate of deposit (CD)

Back

Traditional savings account

Front

Which type of insurance provides income to people who depend on a wage earner after the wage earner dies? Options: Automobile insurance, Disability insurance, Health insurance, Life insurance

Back

Life insurance

Front

Which of the following investments is characterized by the following traits:
• Investor loans money to a city, county government, or company
• Money is repaid after a certain date, plus interest is paid
• Generally considered a safe investment, although not insured by the FDIC
Options: Bonds, Exchange-traded fund (ETF), Savings accounts, Mutual funds

Back

Bonds

Front

When one party to a contract does not do what the contract requires, the individual has committed a what of the contract?

Back

Breach

Front

All of the following are advantages of bundling insurance EXCEPT what? Convenience, Less complicated, Potential saving of money

Back

Increases insurance options

Front

The total money one gets to "take home" from a paycheck after taxes and deductions are taken out is known as what?

Back

Net pay

Front

Which of the following investments is characterized by the following traits:
• Risky
• Ownership in a corporation
• Pays dividends
• Potential for reward is high
Options: Stocks, Bonds, Commodities, Real estate

Back

Stocks

Front

When one is inspecting a banking or credit statement and discovers several charges they did not make, the individual is most likely a victim of what?

Back

Identity theft

Front

Using the simple interest formula, calculate the interest earned on $150 after one year at a 6% return rate.

Back

$9.00