Phase 2 Exam Review 35 M/C, 35 T/F Questions Chapters 6 - 12 Personal Financial Planning FIN 235.
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Transcript of Phase 2 Exam Review 35 M/C, 35 T/F Questions Chapters 6 - 12 Personal Financial Planning FIN 235.
![Page 1: Phase 2 Exam Review 35 M/C, 35 T/F Questions Chapters 6 - 12 Personal Financial Planning FIN 235.](https://reader035.fdocuments.net/reader035/viewer/2022071808/56649eec5503460f94bfe911/html5/thumbnails/1.jpg)
Phase 2 Exam Review35 M/C, 35 T/F Questions
Chapters 6 - 12
Personal Financial PlanningFIN 235
![Page 2: Phase 2 Exam Review 35 M/C, 35 T/F Questions Chapters 6 - 12 Personal Financial Planning FIN 235.](https://reader035.fdocuments.net/reader035/viewer/2022071808/56649eec5503460f94bfe911/html5/thumbnails/2.jpg)
Chapter 6Building and Maintaining Good Credit
• Types of Credit– Closed-end– Open-end– Reasons for using credit– Credit score and interest rates– Role of credit bureaus
• Advantages vs. Disadvantages– #1 advantage – life style– #1 disadvantage – easy to overspend– Protecting your credit
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Chapter 7
• Warranties– Full– Expressed– Limited– Implied
• Buying Wisely– Information – Compare – Select/Buy – Post-Purchase
• Inducements to Buy– Rebates, Discounts, add-ons
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Chapter 7Credit Cards & Consumer Loans
• Importance of APR• Credit Limits• Types of Credit– Revolving / Open-ended– Home equity
• Penalties for Late Payments• Cash Advances from credit cards
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Chapter 8Vehicle Purchases
• Wants vs. Needs in Selection process• MSRP vs. Negotiated Sale Price• Impact of down payment– Relation to being upside-down in loan/lease
• Importance of:– Pre-shopping– Decision Making– Negotiating Price– Vehicle history when buying a used vehicle
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Chapter 9Obtaining Affordable Housing
• Renting (Lease Agreements)– Terms and Conditions (contractual obligations)– Subletting
• Mortgage Financing– Qualifications, Points– Types of Mortgages• Second Mortgages and Home Equity Loans
– Importance of down payments, PMI requirement– Short-sales, Flipping
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Chapter 10: Managing Risk
• Relationship between risk, uncertainty and financial Loss
• Rationales for buying insurance• Risk Reduction vs. Risk Avoidance• Steps in risk management process• Hazards, Perils, & Exposure
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Chapter 11: Health Insurance
• Objectives of Health Care [policies]• Types of Plans:– Comprehensive– Blue Cross / Blue Shield– Medicare– Medicaid– Health savings Accounts
• Disability Benefits eligibility• Parental Coverage of children under PPAHCA.
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Chapter 12: Life Insurance
• Rationales for Life Insurance• Survivor Social Security Benefits• Difference between Term and Whole Life
insurance policies– Motives for selecting term over whole life
• Primary v-v Contingent beneficiaries