1. Final Quiz Study Guide 1
FP/120 Version 3
University of Phoenix Material
Final Quiz Study Guide
Purpose: The purpose of this study guide is to assist in preparation for thefinal quiz.
How to use this study guide: Use this study guide to review the content covered in each week of the
course. The guide highlights the relevant weekly readings and focuses on the important content areas
within the readings. Consult the sample quiz for examples of the types of questions found in the final quiz.
Week Four: Insurance
Objective What to Study
Summarize the functions of Ch. 8 of Personal Finance
insurance.
How Insurance Works
o Risk Pooling and Insurance
o Insurance Premiums
o Insurance Policies and Terminology
List characteristics of auto, Ch. 8 of Personal Finance
home, health, disability, and life
insurance. Managing Homeowners’ and Renters’ Risk
Homeowner’s Insurance Policies
o Homeowner’s Insurance Forms and Coverages
o Pricing of Homeowner’s Insurance
Automobile Insurance
o Managing Automobile Risks
o The Personal Automobile Policy (PAP)
o No-Fault Auto Insurance
o Auto Insurance Premiums
Ch. 9 of Personal Finance
Types of Health Insurance
o Fee-for-Service Plans
o Managed-Care Plans
o Consumer Choice Plans
o Government-Sponsored Plans
o Dealing with Special Circumstances
o Additional Types of Insurance
Planning for Disability Income Needs
o What Is Disability?
o Sources of Disability Income
Copyright ©2012by University of Phoenix. All rights reserved.

2. Final Quiz Study Guide 2
FP/120 Version 3
Ch. 10 of Personal Finance
What Is Life Insurance?
o How Life Insurance Works
o How Life Insurance Differs from Other Insurance
Determining Your Life Insurance Needs
o What Are the Odds?
Describe the importance of wills. Ch. 15 of Personal Finance
Key Components of an Estate Plan
o The Will
o The Living Will or Durable Power of Attorney
o The Letter of Last Instruction
Types and Formats of Wills
o Preparing a Valid Will
o Passing Property Outside a Wil
Week Four: Tax Management
Objective What to Study
Explain taxable income and Ch. 3 of Personal Finance
taxes owed.
Calculating Taxable Income and Taxes Owed
o Figure 3.3
o Reporting Income
o Table 3.1
o Adjusted Gross Income
o Standard vs. Itemized Deductions
o Exemptions
o Final Calculation of Taxes Owed
o Paying Taxes
Summarize ways to save money Ch. 3 of Personal Finance
on federal taxes.
Tax Planning Strategies
o Tax Evasion vs. Tax Avoidance
o Reducing Taxable Income
o Deferring Taxable Income
o Receiving Income That Is Subject to Lower Tax Rates
o Increasing Deductions and Exemptions from Income
o Maximizing Tax Credits
Copyright ©2012by University of Phoenix. All rights reserved.

3. Final Quiz Study Guide 3
FP/120 Version 3
List steps to file a federal tax Ch. 3 of Personal Finance
return.
Filing Your Federal Tax Return
o Filing Status
o Income
o Age
o When and Where to File Taxes
o IRS Forms
o The Most Common Filing Errors
Week Five: Investment and Long-Term Planning
Objective What to Study
Summarize the investment Ch. 11 of Personal Finance
planning process.
Developing Realistic Investment Goals
o Establishing a Firm Foundation
o Investing to Meet Your Prioritized Goals
o Getting the Money to Invest
Understanding Your Investment Alternatives
o The Advantages and Disadvantages of Lending
o The Advantages and Disadvantages of Owning
o The Major Asset Classes
Factors That Reduce Investment Risk
o The Risk/Return Trade-off
o Measuring Risk and Return for Individual Securities
o Risk Premiums
o Reducing Risk in a Portfolio
Establishing Your Investment Strategy
o Active vs. Passive Investing
o Passive Investing Strategies
Explain retirement income Ch. 14 of Personal Finance
needs.
Estimating Retirement Income Needs
o Determining Your Retirement Goals
o Figure 14.1
o Determining Your Expenses in Retirement
o Adjusting for Inflation
Sources of Retirement Income
o Estimating Your Social Security Benefits
Copyright ©2012by University of Phoenix. All rights reserved.

4. Final Quiz Study Guide 4
FP/120 Version 3
o How Much Nest Egg Will Be Enough?
Preparing for Retirement Payouts
o Distributions from Retirement Accounts
o What Happens if You Don’t Have Enough Money to Retire?
List sources of retirement Ch. 14 of Personal Finance
income.
Sources of Retirement Income
o Estimating Your Benefits from Employer-Sponsored Plans
o Estimating Your Social Security Benefits
o How Much Nest Egg Will Be Enough?
Personal Retirement Savings Options
o Individual Retirement Accounts
o Investing in Taxable Accounts
o Asset Allocation in Retirement Accounts
Preparing for Retirement Payouts
o Distributions from Retirement Accounts
o Tapping Your Home Equity
o What Happens if You Don’t Have Enough Money to Retire?
Copyright ©2012by University of Phoenix. All rights reserved.