1. What is a deductible as it pertains to health insurance. a. The reduced charge for "in network healthcare b. A free serviced not included in a medical bill c) The amount of medical costs that must be paid by the insured before insurance pays anything 2. Studies reviewed in class show that the most important factor in wealth building is: a) Propensity to save b) Lifetime wages c) Level of education 3. Credit scores are often used by landlords to decide if someone will be a "good" tenant. a) True b) False 4. Which one is the most important input to a person's credit score. a) Ratio of outstanding debt to credit limit b) Salary c) Past record of paying bills on time. 5. The New York Times column reviewed in class indicated our shoe salesperson had difficulty getting a job because he had a bad credit record. a) True b) False 6. The leading cause of bankruptcy filings is UNPAID MEDICAL BILLS and the majority of those filing for bankruptcy have health insurance but can't afford to pay the deductibles plus co-insurance. a) True b) False 7. The amount of life insurance to purchase is the amount that will allow surviving dependents to maintain their standard of living for an appropriate number of years. a) True b) False 8. Insurance that pays when you cause injury or damage to another person is called: Endemnity Insurance Subrogation Insurance Liability Insurance. 9. A credit freeze prevents lenders from accessing your credit record. The good thing here is that dishonest people cannot take out loans in your name b/c no lender will lend them money unless the lender can access your credit record to verify that you are a good credit risk. a) True b) False 10. A will determines who receives the money in your 401k account when you die no matter what your beneficiary designation says. a) True b) False 11. Your house has a market value of $380,000 and you owe $80,000 on your mortgage. Your home- owners equity is: a) $300,000 b) $460,000 c) $380,000 12. Our 50%-30%-20% rule tells you to save what percent of your after-tax income? a) 50% b) 30% c) 20% 13. Which 401K or IRA contribution allows a tax deduction for contributions? a) Roth b ) Traditional c) both 14. Which requires paying income tax on withdrawals? a) Roth b) Traditional c) both 15. Which typically charges lower fees? a) Index Fund b) Actively managed fund c) they are same