Case Study: Personal Financial Planning — Unit test Answers

Why is it risky to invest in a commodity?

If a home is valued at $250,000 and the property tax rate is 2 percent, how much will the owners pay in property taxes?

Planning to finance higher education helps people prepare for their financial future because it teaches them about

This graph compares the total cost of attending educational institutions in Texas.

This chart shows the actual pricing history for three items.

In determining whether to issue a loan, banks are not allowed to ask about an applicant’s

Someone who diversifies investments is more likely to

Sara is 16 years old and would like to open a bank account. What will she need in addition to her parent or guardian? Select four answers.government-issued ID or birth certificatehigh school diplomamoney to start the accountsocial security number or immigration formproof of address

Maria's family has a health insurance plan. Her mother has $350 deducted from her paychecks each month.When Maria visited the doctor, her mother paid a $25 fee. The insurance company covered the rest of the cost of the visit.When Maria's mother went to the hospital, her family was responsible for paying the first $1,000 of the bill. After this payment, the insurance company covered the rest of the costs.

In what circumstance would a property insurance claim be rejected?

What do financial planning skills ultimately enable an individual to do?

To change gross income, someone would need to

Marlene has decided to save $3,500 so that she can attend the nearby community college. Which step in the decision process should Marlene take?

What is an advantage of renting a place to live?

Why might variable expenses change a great deal at different times of year?

After he bought a new car, Nelson purchased car insurance. He must pay $75 each month for the plan.Later that month, Nelson caused a car accident when he lost control of his vehicle. He was required to pay the first $500 of his repair costs, and then the insurance company covered the rest.

How can an insurance company make a profit by taking in premiums and making payouts?

Kerry knows that a new car is in her future.Which would be the best strategy to help her accomplish this goal?

Many checking accounts offer multiple ways of accessing money in addition to checks. Which of these can be used to access money in a checking account?

Buying a new car can create a financial challenge because