#1
Which of the following is NOT a recommended financial preparation step before military deployment?
Canceling all insurance policies
ExplanationMaintaining insurance coverage mitigates risks during deployment.
#2
What is the purpose of an emergency fund in financial preparation for military deployment?
To cover unexpected expenses
ExplanationIt provides a buffer for unforeseen costs during deployment.
#3
What is the purpose of a power of attorney in financial preparation for military deployment?
To delegate financial decision-making authority
ExplanationIt grants someone authority to manage finances on behalf of the service member.
#4
Which of the following is a potential consequence of not updating beneficiary information before military deployment?
Delayed life insurance payouts
ExplanationOutdated beneficiary details can cause delays in benefits distribution.
#5
Which of the following types of insurance should be considered before military deployment?
Life insurance
ExplanationLife insurance offers financial protection for dependents in case of loss.
#6
What is a common recommendation regarding investments before military deployment?
Diversify investments
ExplanationDiversification spreads risk and enhances financial stability.
#7
What is a common method of managing finances during military deployment?
Enrolling in financial education programs
ExplanationEducation programs offer guidance for managing finances effectively during deployment.
#8
What is the purpose of a deployment savings account?
To cover deployment-related expenses
ExplanationIt ensures funds are readily available for deployment necessities.
#9
Why is it important to notify financial institutions about military deployment?
To prevent identity theft and fraud
ExplanationAlerting institutions safeguards against unauthorized access to accounts.
#10
Why is it important to review financial accounts and documents before military deployment?
To ensure accuracy and update information
ExplanationReviewing prevents errors and ensures information is current for deployment.
#11
Why is it important to set up automatic bill payments before military deployment?
To reduce late fees and maintain credit scores
ExplanationAutomated payments ensure bills are paid on time, preserving creditworthiness.
#12
What is the primary purpose of setting up an emergency fund before military deployment?
To cover unexpected expenses
ExplanationAn emergency fund provides a safety net for unforeseen financial challenges.