Personal Finance Quiz: Part 4

Total Questions : 25

Scoring System:
Correct Answer    : +1 points
Incorrect Answer  : -1 point
Not Answered      :  0 point


The final result will appear at the end. All The Best.
  

1. Which of the following is NOT a type of federal student loan?
Direct Parent PLUS Loan
Direct Unsubsidized Loan
Direct Graduate PLUS Loan
2. Which savings account is specifically designed to cover K-12 education expenses?
529 plan
UGMA/UTMA account
ESA
3. What is the main advantage of a custodial account (UGMA/UTMA) for education funding?
Higher returns on investments
No contribution limits
Tax-free withdrawals
4. Which organization guarantees federal student loans?
Federal Reserve
Internal Revenue Service (IRS)
Department of Education
5. Which federal program provides work-study opportunities for eligible college students?
FAFSA
Federal Work-Study Program
Perkins Loan
6. What is the penalty for non-qualified withdrawals from a 529 plan?
15% of principal
5% of earnings
10% of contributions
7. What is the main purpose of a prepaid tuition plan?
Locking in future tuition rates at current prices
Tax-free growth of investments
Access to federal grants
8. Which of the following is NOT considered when calculating Expected Family Contribution (EFC)?
Family assets
Number of family members in college
Student's high school GPA
9. Which federal loan requires a demonstration of financial need?
Direct Subsidized Loan
Direct Unsubsidized Loan
Direct PLUS Loan
10. Which type of federal loan offers a fixed interest rate and is available to undergraduate students?
Direct Unsubsidized Loan
Direct Subsidized Loan
Direct Parent PLUS Loan
11. Which of the following is a tax-advantaged savings account specifically designed for medical expenses?
IRA (Individual Retirement Account)
ESA (Education Savings Account)
HSA (Health Savings Account)
12. What does COBRA stand for in relation to healthcare coverage?
Committee on Budget, Resources, and Accounting
Consolidated Omnibus Budget Reconciliation Act
Coordination of Benefits and Reimbursement Agreement
13. Which type of insurance provides coverage for long-term care services such as nursing home care or home health care?
Life insurance
Medicare
Long-term care insurance
14. What is the purpose of a Health Reimbursement Arrangement (HRA)?
To offer supplemental health coverage to employees
To reimburse employees for qualified medical expenses
To provide retirement benefits to employees
15. Which government program provides healthcare coverage for individuals aged 65 and older?
Medicare
TRICARE
Medicaid
16. Which of the following is a qualified medical expense that can be reimbursed through a Flexible Spending Account (FSA)?
Over-the-counter medications without a prescription
Cosmetic surgery
Vacation expenses for medical treatments
17. Which type of insurance policy pays a predetermined amount for each day an individual is hospitalized?
Term life insurance
Disability insurance
Hospital indemnity insurance
18. Which government program provides healthcare coverage for low-income individuals and families?
Medicare
Affordable Care Act
Medicaid
19. What is the purpose of a Health Maintenance Organization (HMO)?
To provide coverage for catastrophic medical events
To focus on preventive care and manage healthcare costs
To offer tax-advantaged savings for medical expenses
20. Which type of insurance is designed to cover the costs of unexpected medical events and emergencies?
Supplemental insurance
Catastrophic insurance
Comprehensive insurance
21. Which government program provides healthcare coverage for active and retired military personnel and their families?
TRICARE
Medicaid
COBRA
22. What is the purpose of a Health Savings Account (HSA)?
To save for retirement
To fund education expenses for dependent children
To pay for healthcare expenses with pre-tax dollars
23. Which of the following is an example of a preventive care service that is typically covered at no additional cost under health insurance plans?
Emergency room visits
Hospital stays
Annual physical exams
24. What is the purpose of a Medical Power of Attorney?
To make medical decisions on behalf of an individual who is unable to do so
To dispute medical bills and insurance claims
To apply for government healthcare programs
25. Which type of insurance covers a portion of the costs for prescription medications?
Vision insurance
Prescription drug insurance
Dental insurance