Question 16 (2 points)

Question

Stopping payment on a check is relatively expensive and should be used rarely by most people.
Question 16 options:

True

False
Question 17 (2 points)
Liquidity refers to your ability to cover any long-term cash deficiencies.
Question 17 options:

True

False
Random Section Chp 8
Question 18 (2 points)
There are set limits on how much a student can borrow each year for student loans, but these limits usually increase each year as the student progresses.
Question 18 options:

True

False
Question 19 (2 points)
In general, you will receive more favorable terms on a secured loan than on an unsecured loan.
Question 19 options:

True

False
Question 20 (2 points)
The size of the monthly payment on a loan is dependent on
Question 20 options:

principal borrowed.

interest rate.

maturity.

All of these.
Question 21 (2 points)
In determining the amount of your loan, you should ask for about 20% more than you need in order to give yourself financial flexibility in the future.
Question 21 options:

True

False
Random Section Chp 12
Question 22 (2 points)
Term insurance will provide most of a young family's life insurance coverage due to its affordable cost.
Question 22 options:

True

False
Question 23 (2 points)
Universal life insurance is the same from one insurance company to another and is therefore the most common and popular form of life insurance.
Question 23 options:

True

False
Question 24 (2 points)
If you buy a term insurance policy with a conversion option, this means that you
Question 24 options:

will get most of your premiums back if you terminate the policy before its expiration.

can convert the policy to a larger term policy after one year.

can convert your term policy to a whole life policy during the conversion period.

will be able to change the term of your policy and automatically extend it.
Question 25 (2 points)
Advantages of whole life insurance policies are that they provide long-term coverage, the rates are fixed, and they have a savings or cash value feature.
Question 25 options:

True

False

Answer 1

Here are the answers to the questions based on typical financial principles:

Question 16: True
Stopping payment on a check can indeed be relatively expensive and is advised to be used sparingly.

Question 17: False
Liquidity refers to your ability to quickly access cash to cover short-term needs, not long-term cash deficiencies.

Question 18: True
Student loan borrowing limits typically increase year by year as a student progresses through their program.

Question 19: True
Secured loans generally have more favorable terms compared to unsecured loans due to the lower risk to lenders.

Question 20: All of these.
The monthly payment on a loan is influenced by the principal borrowed, interest rate, and loan maturity.

Question 21: False
It is generally advisable to ask for only what you need without inflating your request for flexibility, as borrowing more than necessary can lead to unnecessary debt.

Question 22: True
Term insurance is often used by young families because it is typically more affordable compared to other types of life insurance.

Question 23: False
While universal life insurance policies have similar structures, they can vary significantly in terms of features and benefits from one insurer to another.

Question 24: can convert your term policy to a whole life policy during the conversion period.
This is the correct interpretation of having a conversion option in a term insurance policy.

Question 25: True
Whole life insurance policies provide long-term coverage, fixed rates, and include a cash value feature.

Feel free to ask if you have more questions or need further explanations!