Module 2

If you make all of your homeowner's insurance premium payments and a tornado hits your home during a bad thunderstorm, what will you need to do next to repair the damage?

• pay the deductible

• take out a new insurance policy

• file a claim with your insurance company

  
  

Who should be consulted to help with estate planning and writing wills?

• Real Estate Agent

• Banker

• Estate Lawyer

What tool helps protect individuals from financially devastating events?

• Credit Card

• Insurance

• Certificate of Deposit

What is the best reason to avoid using overdraft protection offered by a bank?

• There are high fees associated with the use of overdraft protection.

• Overdraft protection only covers savings accounts.

• Most banks don't offer overdraft protection.

Yashiro has been hired by a local fast food restaurant. His new boss tells him to bring a voided check with him to sign paperwork so that he can be paid. What bank product will he be signing up for?

• Direct Deposit

• Credit Check

• Savings Account

What is an advantage of taking a 30 year fixed mortgage compared to other options? 

• higher amount of principal paid each month

• less interest paid to the bank

• lower monthly payment

Which of the following would you need if you decided to rent a place to live rather than purchase it?

• Renter's Insurance

• Mortgage

• Bank Loan

What category would your electricity bill that varies each month fit in?

• Variable Expenses

• Assets

• Debt

• Fixed Expenses

What is the recommended percentage of your monthly income that should be devoted to housing?

• 30%

• 40%

• 50%

• 10%

Eric recently graduated from college and has a goal of owning his own home by the time he is 30 years old. What tool should he be using him to help him plan how to spend his money?

• Budget

• Credit Card

• Mutual Fund