CSUF Fin 310 - Exam #2 Review
Adjustable-Rate Loans correct answers Interest rate does not
stay fixed but varies based on market interest rate.
Annual Percentage Rate correct answers the cost you pay each
year to borrow money, including fees, expressed as a
percentage. The APR is a broader measure of the cost to you of
borrowing money since it reflects not only the interest rate, but
also the fees that you have to pay to get the loan.
Assumable Loan correct answers a clause in your loan
agreement that states that the balance of that loan can be
transferred to someone else.
Assumption of Risk correct answers a defense against
negligence that can be used when the plaintiff was aware of a
danger and voluntarily assumed the risk of injury from that
danger.
Balloon Payment correct answers a loan that is paid back in a
single lump-sum payment at maturity or on the due date of the
loan, which is usually in the loan contract. At that date, you pay
back the lump sum plus interest charges.
Bankruptcy correct answers Declared by law unable to pay
outstanding debts.
Chapter 10:
Bodily Injury vs Personal Injury
, Explain/Describe correct answers Bodily Injury: Real Physical
Injury, (broken bones, etc) easier to see and determine.
Personal Injury: Physiological, (harassment, racism, slander,
libel, etc.) harder to see and determine.
Chapter 10:
Deductibles & CoPays- What are they and why needed
Explain/Describe correct answers Both are known as an out-of-
pocket expense.
Copay: a fixed amount that is paid at the time you receive
medical services or get a prescription filled.
Deductible: the amount you're required to pay before the health
insurance starts to cover defined benefits. They're in place to
make sure you don't abuse your policy (going to the doctor for
every little thing/hitting people or things all the time, or other
reckless driving).
Chapter 10:
Explain the use of an Umbrella Policy
Explain/Describe correct answers Umbrella insurance is extra
insurance that provides protection beyond existing limits and
coverages of other policies.
Adjustable-Rate Loans correct answers Interest rate does not
stay fixed but varies based on market interest rate.
Annual Percentage Rate correct answers the cost you pay each
year to borrow money, including fees, expressed as a
percentage. The APR is a broader measure of the cost to you of
borrowing money since it reflects not only the interest rate, but
also the fees that you have to pay to get the loan.
Assumable Loan correct answers a clause in your loan
agreement that states that the balance of that loan can be
transferred to someone else.
Assumption of Risk correct answers a defense against
negligence that can be used when the plaintiff was aware of a
danger and voluntarily assumed the risk of injury from that
danger.
Balloon Payment correct answers a loan that is paid back in a
single lump-sum payment at maturity or on the due date of the
loan, which is usually in the loan contract. At that date, you pay
back the lump sum plus interest charges.
Bankruptcy correct answers Declared by law unable to pay
outstanding debts.
Chapter 10:
Bodily Injury vs Personal Injury
, Explain/Describe correct answers Bodily Injury: Real Physical
Injury, (broken bones, etc) easier to see and determine.
Personal Injury: Physiological, (harassment, racism, slander,
libel, etc.) harder to see and determine.
Chapter 10:
Deductibles & CoPays- What are they and why needed
Explain/Describe correct answers Both are known as an out-of-
pocket expense.
Copay: a fixed amount that is paid at the time you receive
medical services or get a prescription filled.
Deductible: the amount you're required to pay before the health
insurance starts to cover defined benefits. They're in place to
make sure you don't abuse your policy (going to the doctor for
every little thing/hitting people or things all the time, or other
reckless driving).
Chapter 10:
Explain the use of an Umbrella Policy
Explain/Describe correct answers Umbrella insurance is extra
insurance that provides protection beyond existing limits and
coverages of other policies.
