1. Which is a true statement? A real interest rate that is equal to current inflation is desirable.
A real interest rate that is higher than current inflation is desirable.
A nominal interest rate that is equal to current inflation is desirable.
A nominal interest rate that is lower than current inflation is desirable.

2. Dorothy is 25 years old, works from home, and does her best to stay healthy by eating well and exercising daily. She chooses a 40/60 hospital health policy. What is true?

She anticipates hospital visits and wants the lowest payment share on her part.
She trusts that her age and current lifestyle will keep her out of hospitals.
She prefers complete insurance coverage so she does not have to worry.
She chooses a high co-payment that she can save if she does not use it.

3. Which of the following might affect financial aid eligibility if money is withdrawn from it?

Opt-in plan
Roth IRA
A 529 plan
Matching program

4. What institution will Martha's lender check before granting or denying a loan or mortgage to Martha?

The Bureau of Consumer Protection
A credit bureau
The Federal Insurance Corporation
A credit union

5. What is the function of the Federal Reserve (Fed)?

Controls the money supply
Requires financial information from publicly traded companies
Regulates stockbrokers
Protects investors

6. You may be a victim of phishing if you

give out your credit details to a stranger via phone or email
keep your credit card next to you at a public coffee shop
leave personal documents on your work desk overnight
forget your personal computer in school

7. A store advertises new cell phones for $95 a month for 12 months instead of $1,140 in order to

encourage customers to enter the store
be creative with their marketing campaign
reduce the price burden on the customer
make a large price look more manageable

8. Which non-income factor for a potential job would influence a person who values easy access to entertainment and culture?

Job security
Working hours
Location
Availability of benefits

9. Which non-income factor for a potential job would influence a person who values easy access to entertainment and culture?

Job security
Working hours
Location
Availability of benefits

10. Al heard rumors that the company where he has been employed for 10 years may reduce personnel. He just bought a new home. What insurance may be best for him right now?

Life insurance and unemployment insurance
Unemployment insurance and property insurance
Personal injury insurance and retirement insurance
Accident insurance and property insurance

11. Donald does not like any risk and does not trust banks or the markets. What option will he most likely choose to save his money?

Put it in a safe at home.
Put it in a traditional savings account.
Put it in a checking account.
Put it in stocks.

12. Laura made a down payment on a piece of land she bought. Which of the following is true because of the down payment?

It will take her longer to repay the loan.
Her loan insurance will be higher.
This loan is riskier for the lender.
The loan may carry a lower interest rate.

13. What is likely to happen to the interest of a credit card with an introductory APR?

There is a slight interest decrease after the first year.
There is a significant interest increase after the first year.
The interest will be revised after the first year, based on the economy.
The interest will be revised after the first year, based on the borrower's repayment history.