UGBA 96 Midterm UPDATED Exam Questions and CORRECT Answers
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Course
UGBA 96
Institution
UGBA 96
UGBA 96 Midterm UPDATED Exam
Questions and CORRECT Answers
Happy Money Book's Suggestions for Spending for Happiness - Correct Answer- 1) Buy
experiences, not things
- enjoyment from experiments live on forever
2) Make it a treat
- indulge in different things and try to buy many smaller thi...
UGBA 96 Midterm UPDATED Exam
Questions and CORRECT Answers
Happy Money Book's Suggestions for Spending for Happiness - Correct Answer- 1) Buy
experiences, not things
- enjoyment from experiments live on forever
2) Make it a treat
- indulge in different things and try to buy many smaller things rather than a few expensive
ones
3) Buy time
- look for ways to get more time to enjoy things
4) Pay now, consume later
- save up and then spend so there is more anticipation and no debt later
5) Invest in others
- leads to more happiness than buying for self
Adapation to Material vs. Experiential Purchases (Carter and Gilovich) - Correct Answer- - in
series of studies, authors document:
1) Choosing material purchase is hard: participants were less satisfied with their material
purchases because they were more likely to ruminate about unchosen options
2) Participants tended to maximize when selecting material goods and satisfice when
selecting experiences
3) Regret: after purchase, participants examined unchosen material purchases more than
unchosen experiential purchases
4) Participants' satisfaction with material possessions was undermined more by comparison to
other available options
First Step To Take When Financial Trouble Strikes - Correct Answer- Use Emergency Fund
- do not use credit card
Insurance - Correct Answer- - protects us from being wiped out completely from big losses
that are unlikely
,- for the big stuff not small things
Health Insurance - Correct Answer- - everyone needs it and with Obama care everyone can
have it
Homeowners Insurance - Correct Answer- - if you own a home, you need it
- provides liability insurance and medical payments to other people if they are injured in your
home or on your property
- Earthquakes, Volcanoes and Hurricanes are not covered by homeowners insurance
Automobile Insurance - Correct Answer- - if you own a car, truck, van or motorcycle, you
need it
- state minimums aren't enough
- to save, increase deductible
- in the US, 1 in 7 drivers is uninsured
Property Liability Coverage - Correct Answer- - damage you do to other car or property
Liability Insurance - Correct Answer- - pays for other people's losses in accidents you cause
- does not pay for your losses
- bodily liability and property liability
Three Limits for Liability Coverage (Automobile Insurance) - Correct Answer- - in california,
minimum is 15/30/5
EX// 100/300/50 Coverage
- $100,000 Bodily Injury Liability Insurance Per Person
-$300,000 Total Bodily Injury Liability Insurance Per Accident
- $50,000 Property Damage Liability Per Accident
Collision Coverage - Correct Answer- - coverage from an accident you caused
- pays for damage to your car
- covers you if you were to collide with another object, such as a tree or another car
, - usually covers up to book value of your vehicle, even if you're at fault
Comprehensive Coverage - Correct Answer- - covers damage to your car from things other
than collisions that aren't already covered
- theft, hail storm, hit by an animal, etc
Do you need collision and comprehensive insurance? - Correct Answer- - if you have an older
car that isn't in the best shape, consider not having them
- with both collision and comprehensive, most companies will pay the book value of your car
- if you can afford to replace car using emergency fund you may want to avoid them to save
money
How much auto insurance do we need? - Correct Answer- - keep liability insurance at least as
high as your assets (savings and equity in home
Fault Insurance - Correct Answer- - person who causes an accident is responsible for paying
all damages
- medical bills, damaged properties, lost wages, pain and suffering, legal expenses, etc
No Fault Insurance - Correct Answer- - person who caused accident has to pay for damage to
property but anyone who is injured is responsible for their own medical bills, lost wages,
etc... regardless of whose fault it was
Personal Injury Protection Insurance - Correct Answer- - required if you live in a no-fault
state
- covers your medical expenses
Umbrella Insurance - Correct Answer- - if you have much more wealth than the liability
insurance limits on your policies, you should consider getting it
Life Insurance - Correct Answer- - if other people depend on your income, you need it
- Term life insurance
- Cash Value life insurance
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