TCU Personal Financial Literacy Final Exam Questions and Correct Answers

TCU Personal Financial Literacy Final Exam Questions and Correct Answers Is a high deductible medical insurance plan appropriate for you as a young person? - Correct Answer YES - a high deductible medical insurance plan will have lower premiums Deductible = the amount of money you have to pay for medical costs before your health insurance starts picking up a greater portion of the tab Premiums = the amount taken out of your paycheck to pay for your coverage What is impact of having good credit score when getting a loan? - Correct Answer The higher your credit score, the lower the interest rate on the loan will be FICA - Correct Answer Mandatory, statutory taxes that fund Social Security and Medicare - taken directly out of your paycheck Average rate of return for stocks over past 70 years - Correct Answer Stocks return 10%, bonds return 5.5%, cash returns 3% How many months worth of expenses should you have in your emergency fund? - Correct Answer 9 months how should u go about saving for ur financial goals - Correct Answer 50% needs 30% wants 20% savings OR 80% spending 20% saving know the relationship betw