Gabe's health insurance premium is $500 per month.

Which of the following statements is true for Gabe?

• a.)
• The $500 is the recurring payment Gabe makes to the insurance company to keep the policy active.
• b.)
• The $500 is the amount that Gabe has to pay before the insurance company pays the remaining costs.
• c.)
• The $500 is the maximum amount that the insurance company will pay toward a claim.
• d.)
• The $500 is the fixed amount that Gabe has to pay every time he files an insurance claim.

In which of the following scenarios is the person paying an insurance copayment?

• a.)
• Cedric pays $30 each time he visits the doctor and his insurance company covers the remaining portion.
• b.)
• Amy mustpay $400 toward her medical bills before her insurance provider contributes any funds to cover her medical costs.
• c.)
• Claudia's employer pays $200 of her insurance costs and she pays the remaining$100.
• d.)
• Eddie pays $400 a month for his insurance coverage.

Which of the following conditions indicates that an individual should buy less disability coverage or could go without buying disability insurance?

• a.)
• When an individual has a single source of income
• b.)
• When an individual has few assets
• c.)
• When an individual has high debt
• d.)
• When an individual has a high net worth

Elena takes out an insurance policy on her own life, with her younger sister receiving the insurance payout if she dies.

Which of the following is true in this scenario?

• a.)
• Elena's sister is the insured.
• b.)
• Elena's sister is the policy owner.
• c.)
• Elena's sister is the beneficiary.
• d.)
• Elena's sister will be responsible for paying the premiums.

Which of the following is a feature of collision insurance coverage?

• a.)
• The policy covers the funeral expenses of the individuals who die in an accident while traveling in the insured vehicle.
• b.)
• The policy pays for the repair of the policyholder's vehicle if the damage is caused by an accident.
• c.)
• The policy pays the repair bills of all the vehicles involved in an accident.
• d.)
• The policy covers the medical expenses of all injured people in the insured vehicle at the time of the accident.

Which of the following factors should be considered while purchasing a homeowner's insurance (HO) policy?

• a.)
• The probability of a family member having a physical injury on the property
• b.)
• The number of other properties owned by the homeowner
• c.)
• The perils faced by the property to be insured
• d.)
• The number of members in the homeowner's family who use the house property

Jayden is 52 years old and has recently been diagnosed with dementia. Jayden knows he will not be able to take care of himself in the coming years.

Which type of insurance coverage should Jayden buy to help him with everyday self-care needs at home?

• a.)
• Long-term care insurance
• b.)
• Life insurance
• c.)
• Medicaid
• d.)
• Health insurance

Which of the following people is likely to have the highest required retirement savings rate, if each plans to retire at age 65?

• a.)
• Brooke, who earns $45,000 a year and began saving for retirement at age 25
• b.)
• Emily, who earns $65,000 a year and began saving for retirement at age 35
• c.)
• Julio, who earns $78,000 a year and began saving for retirement at age 50
• d.)
• Floyd, who earns $40,000 a year and began saving for retirement at age 20

Which of the following people can withdraw earnings from a Roth IRA tax-free?

• a.)
• 63-year-old Ella, who opened the account four years ago
• b.)
• 56-year-old Claudia, whoopened the account 15 years ago
• c.)
• 45-year-old James, who opened the account 20 years ago
• d.)
• 65-year-old Michael, who opened the account 10 years ago

Anthony and his son Nithin are co-owners of a brokerage account. The property title is such that the ownership of the brokerage account transfers automatically to the other in case of death.

Which type of property title do they have?

• a.)
• Tenancy by the entirety
• b.)
• Tenancy in common
• c.)
• Joint tenancy with right of survivorship
• d.)
• Fee simple

Which of the following is a feature of a will?

• a.)
• A will is acceptable only if it is handwritten.
• b.)
• A will is valid only if it has the drafter's signature.
• c.)
• The beneficiaries should witness the signing of the will.
• d.)
• An individual should be of sound mind to make a will.

Which of the following people can be a witness of a valid living will?

• a.)
• The legal heir of the person writing the living will
• b.)
• The neighbor of the person writing the living will
• c.)
• The personal physician of the person writing the living will
• d.)
• An adopted child of the person writing the living will

Noah accumulated a lot of credit card debt during his university education. Currently, he has a low-income job and is struggling to make ends meet.

Which type of financial help provider should Noah hire?

• a.)
• A stockbroker
• b.)
• A legal advisor
• c.)
• A tax advisor
• d.)
• A financial counselor

What makes the Ponzi scheme a fraudulent scheme?

• a.)
• The scheme borrows money from the bank to pay back the investors.
• b.)
• The return on investment can only be claimed after a fixed period.
• c.)
• The investment return is paid back to the investor in the form of cash.
• d.)
• Early investors get their returns through the money contributedby subsequent investors.

Which of the following messages is most likely to be part of a phishing scheme?

• a.)
• Are your investments getting the best returns? We have the perfect solution for you. Contact your financial advisor today.
• b.)
• Saving for college? Learn to make the best use of your hard-earned money at our free webinar.
• c.)
• Thank you for visiting our website! If you liked the content, click the link below to subscribe to our weekly newsletter.
• d.)
• During our account verification process, we couldn't validate your information. Click here to update your account information.

How might individuals enter into fraudulent investment schemes unknowingly?

• a.)
• When they diligently read the conditions of an investment
• b.)
• When they make investment decisions based solely on the suggestions of their friends
• c.)
• When they regularly monitor the performance of an investmentscheme
• d.)
• When they avoid investment schemes that offer high returns at low risks

Cory exhibits optimism bias as he builds his investment portfolio.

Which of the following is a potential outcome of Cory's behavior if he continues exhibiting this type of bias?

• a.)
• Cory could make a poor investment choice based on a lack of self-confidence.
• b.)
• Cory could become loss-averse as a way to shield himself from pain.
• c.)
• Cory could put off some of his investment choices, missing out on valuable returns in the process.
• d.)
• Cory could make a hasty financial decision that causes significant financial loss.