Unit 2 Review

What is one primary benefit of purchasing insurance?

• Guaranteed investment returns

• Avoiding all financial risks

• Peace of mind and financial protection

• Elimination of deductibles

What is a potential cost associated with buying insurance?

• Increased asset value

• Lower monthly premiums

• Deductibles and co-pays

• Enhanced personal well-being

Which of the following is a financial benefit of having insurance?

• Reduced monthly premiums

• Unlimited coverage for all expenses

• Tax deductions on premium payments

• Financial protection from unexpected costs

What might be a drawback of over-insuring with excessive coverage?

• Greater financial protection

• Lower premium costs

• Wasting money on unnecessary coverage

• Eliminating deductibles

What is a personal benefit of insurance?

• Increasing your risk tolerance

• Reducing the need for emergency savings

• Providing a safety net during unexpected events

• Guaranteeing wealth accumulation

What is the main goal of philanthropy?

• To make a profit for businesses

• To promote the well-being of others

• To gain fame and recognition

• To replace government programs

Which of the following is NOT a common motivation for philanthropy?

• Altruism

• Personal values

• Social responsibility

• Competing for donations

Who is considered a donor in philanthropy?

• The person or organization receiving help

• The person or organization providing support

• Government officials overseeing charities

• People refusing to participate

Which is an example of philanthropy?

• A company selling products at a discount

• A student volunteering at a food bank

• A family going on vacation

• A person opening a business for profit

What is one way philanthropic organizations help communities?

• By raising funds and distributing resources

• By keeping all donated money for themselves

• By only helping those who pay a fee

• By focusing only on making a profit