#1
What does APR stand for in the context of credit and insurance?
Average Payment Rate
Annual Percentage Rate
Auto Policy Refund
Asset Protection Ratio
#2
Which of the following is NOT a type of insurance?
Life Insurance
Car Insurance
Mortgage Insurance
Stock Insurance
#3
What is the purpose of a credit score?
To determine the amount of debt a person can take on
To assess a person's creditworthiness
To calculate interest rates on loans
To track a person's spending habits
#4
What does 'premium' mean in the context of insurance?
The fee paid for insurance coverage
The maximum coverage amount
The deductible amount
The term of the insurance policy
#5
What does 'underwriting' mean in insurance?
The process of evaluating and assessing risk for insurance coverage
The premium paid by the insured
The maximum coverage amount
The process of filing an insurance claim
#6
What is the difference between 'term life insurance' and 'whole life insurance'?
Term life insurance provides coverage for a specific period, while whole life insurance provides coverage for the entire life of the insured.
Term life insurance has no cash value, while whole life insurance has a cash value component.
Term life insurance requires a medical exam, while whole life insurance does not.
Term life insurance premiums increase over time, while whole life insurance premiums remain constant.
#7
What is a deductible in insurance?
The amount the insurer pays for a claim
The amount the policyholder pays out of pocket before the insurance coverage kicks in
The percentage of the insured value of the property
The cost of renewing an insurance policy
#8
Which of the following is a characteristic of whole life insurance?
Covers a specific period of time
Does not have a cash value component
Premiums may increase over time
Builds cash value over time
#9
What is 'co-pay' in health insurance?
The total amount paid by the insurance company
The portion of covered expenses that the insured pays out of pocket
The amount paid by the insured before the insurance coverage begins
The cost of medications not covered by insurance
#10
In the context of credit, what does 'default' mean?
The maximum limit on a credit card
Failure to repay a loan or credit card balance on time
The interest rate charged on a loan
The credit limit set by the lender
#11
What does 'exclusion' mean in insurance policies?
The process of including additional coverage in the policy
Specific conditions or situations not covered by the insurance policy
The maximum payout limit on the insurance policy
The process of transferring the policy to another person
#12
What is 'amortization' in the context of credit?
The process of calculating interest on a loan
The process of paying off debt over time through regular payments
The amount of money a borrower owes to the lender
The total amount of interest paid on a loan
#13
What does 'credit utilization ratio' refer to?
The amount of credit available to a person
The percentage of available credit that a person is using
The process of obtaining credit from a lender
The duration for which credit is extended
#14
What is 'collateral' in the context of credit?
The interest rate charged on a loan
The total amount of debt owed
Property or assets that a borrower offers to secure a loan
The process of checking a borrower's credit history
#15
What does 'adverse selection' mean in insurance?
The process of selecting an insurance policy with the lowest premium
The tendency for higher-risk individuals to seek out insurance
The process of choosing the right insurance coverage for one's needs
The act of canceling an insurance policy before its expiration date
#16
What does 'deductible' mean in health insurance?
The amount paid by the insured before the insurance coverage begins
The total amount paid by the insurance company
The cost of medications not covered by insurance
The amount paid by the insurer for a claim
#17
What is 'term' in credit card terms?
The maximum credit limit on the card
The interest rate charged on purchases
The duration for which the credit card is valid
The minimum payment due each month