TEST 12 (Final Examination) Consumer Mathematics Units 1-12

Liability insurance pays for losses not related to traffic accidents.

• True

• False

Write true or false. The beneficiary of a life insurance policy is the recipient of the death benefits.

• True

• False

A loan to buy a house is called a mortgage.

• True

• False

Write true or false. A sales tax is a progressive tax.

• True

• False

Write true or false. Gross income is income after deductions.

• True

• False

A budget is a plan for the use of money.

• True

• False

A license fee is a commission on the sale of stocks or bonds.

• True

• False

Write true or false. The deductible is the amount the policyholder is responsible to pay.

• True

• False

The average collection period measures the average number of days needed to collect a bill.

• True

• False

Write true or false. The simple interest formula is A = P(1 + rt).

• True

• False