AnswersGA-GSE Personal Finance and EconomicsUnit Test

Unit Test — Unit test Answers

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41
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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.

A
payout
B
deductible
C
co-payment
D
premium
42
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Which questions about risk should someone ask before making a big purchase? Check all that apply.

A
What problems are most likely to happen?
B
What can be done to avoid liability?
C
What could go wrong?
D
What problems could be most damaging?
E
What option has no risk?
43

An entrepreneur keeps backup funds in a savings account so that if their business experiences a loss, they will be able to recuperate. What type of risk management is this an example of?

A
reducing risk.
B
sharing risk.
C
avoiding risk.
D
maximizing risk.
44

Insurance is a financial service that allows a

A
consumer to transfer all risk to a company.
B
company to control finances for a consumer.
C
consumer to share liability with a company.
D
company to maximize risk for a consumer.
45

Most people prefer to pay health insurance premiums rather than pay out-of-pocket for medical expenses because

A
people are cautious and believe they are less likely to get sick if they have health-insurance coverage.
B
doctors and hospitals always provide better care to people who have health insurance.
C
people still feel more secure with a health insurance policy, even though out-of-pocket costs are often lower.
D
medical costs can be extremely high, and insurance is more affordable than paying out-of-pocket for a hospital stay.
46

Roland has purchased a new tablet. How can he reduce the risk of damage or misuse? Choose three correct answers.

A
by using a screen protector
B
by letting his toddler play with it
C
by using an antivirus app
D
by using a protective case
E
by letting his friends borrow it
47

[BLANK]

A
share
B
move
C
avoid
D
replace
48

What is an insurance premium?

A
the value of something lost or damaged
B
the highest payout available by an insurer
C
the amount paid for an insurance policy
D
the best type of insurance available
49

Which of these are ways that identity theft can happen? Check all that apply.

A
by forgery
B
by phishing
C
by fraud
D
by financial engineering
E
by social engineering
50

Martin receives an e-mail about a money-making opportunity from a sender who asks for his bank account number. The best way to avoid having his identity stolen is to

A
contact the government and report the e-mail.
B
delete the e-mail and mark it as spam.
C
open the e-mail and follow the steps outlined.
D
contact the police and file a phishing report.
51

Aisha’s income statement for the month of June is shown. Which expression will find Aisha’s net income for June?

Question illustration
A
2,700 dollars divided by 1,300 dollars
Option A
B
1,300 dollars minus 2,700 dollars
Option B
C
1,300 dollars + 2,700 dollars
Option C
D
2,700 dollars minus 1,300 dollars
Option D
52

Which statement best describes the role of a credit agency?

A
It tracks the use of credit for lenders.
B
It predicts future earning potential for lenders.
C
It teaches how to make smart financial decisions.
D
It shows how saving money makes financial sense.
53

Which action is the most important for managing credit effectively?

A
Minimize your debt by paying off what you owe as soon as possible.
B
Open several credit cards to increase your borrowing limit.
C
Make only the minimum payment each month to avoid late fees.
D
Avoid checking your credit report to prevent score changes.
54

The safest way for someone to make an online purchase is to

A
ask friends what websites are secure.
B
check with the government first.
C
buy from a reputable website.
D
visit a locally run website.
55

Look at the table below showing an example of a checkbook ledger.

Question illustration
A
$624.50
B
$704.50
C
$755.50
D
$784.50
56

A drawback to an installment plan is that

A
it takes longer to buy a product.
B
a large down payment is required.
C
interest rates are generally very high.
D
interest rates are generally very low.
57

What helps a consumer determine the quantity of something to buy?

A
marginal cost
B
marginal error
C
marginal benefit
D
marginal comparison
58

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.

A
government-issued ID or birth certificate
B
high school diploma
C
money to start the account
D
social security number or immigration form
E
proof of address
59

In which situation would a savings bond be the best investment to earn interest?

A
if you need access to your cash quickly
B
if you are saving each month for a new car
C
if you are putting aside a chunk of money to purchase a house in five years
D
saving to pay a tax bill in four months
60

Kenya used a debit card to buy a pair of jeans. Which statement is true about her method of payment?

A
Kenya used money directly from her bank account to buy the jeans.
B
Kenya borrowed the money to buy the jeans.
C
Kenya did not have enough money in her bank account to buy the jeans.
D
Kenya will pay for the jeans over time.

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