#1
Which of the following is an example of a short-term financial goal?
Paying off credit card debt
ExplanationPaying off debt quickly helps improve financial health.
#2
What does APR stand for in the context of loans and credit cards?
Annual Percentage Rate
ExplanationAPR represents the yearly cost of borrowing.
#3
Which of the following is a tax-advantaged retirement account in the United States?
401(k)
ExplanationA retirement account with tax benefits.
#4
What is the purpose of diversifying an investment portfolio?
To reduce risk
ExplanationSpreading investments lowers the impact of individual losses.
#5
What is the purpose of a health savings account (HSA)?
To save for medical expenses
ExplanationProvides tax advantages for medical savings.
#6
Which of the following is a characteristic of a high-deductible health plan (HDHP)?
High deductible
ExplanationRequires higher out-of-pocket expenses before coverage.
#7
What is the concept of 'opportunity cost' in personal finance?
The cost of a missed opportunity
ExplanationThe value of the next best alternative when a decision is made.
#8
What is the purpose of an advance directive in healthcare?
To provide medical instructions
ExplanationSpecifies healthcare wishes if unable to communicate.
#9
What is the purpose of a living will?
To specify medical treatments
ExplanationDetails preferences for medical care in certain situations.
#10
What is the purpose of a health care proxy or medical power of attorney?
To specify medical treatments
ExplanationAppoints someone to make medical decisions if unable.
#11
What is the purpose of a durable power of attorney for finances?
To specify financial instructions
ExplanationAuthorizes someone to handle financial matters if incapacitated.