WISE 1-25 QUIA QUESTIONS AND ANSWERS
The value of buying insurance for a cell phone is to (1 point)
A) Permit an upgrade to a newer model cell phone
B) Be able to replace the cell phone if it is lost or stolen
C) Lower the cost of roaming charges on the cell phone
D) Be able to charge the cell phone service provider. - Answers -B) Be able to replace
the cell phone if it is lost or stolen
If a person has to pay $35 a year on each $100 borrowed, the cost in interest is (1
point)
A) Better than the average debit card fee
B) Worse than our US trade deficit
C) low
D) high - Answers -D) High
When a person wins $5,000 in the lottery, the person will (1 point)
A) Receive the winnings from the Ferseral Reserve Bank (Fed).
B) Receive more than $5,000 because the money earns interest from the day the
winnings are announced
C) have to use the money to pay for an educational expense
D) have to report the $5,000 to the Internal Revenue Service (IRS) as income for that
year. - Answers -D) have to report the $5,000 to the Internal Revenue Service (IRS) as
income for that year
Which budget category is correctly matched with its explanation? (1 point)
A) expense: $50 pair of shoes to go with a new outfit
B) Variable expense: $60 automatically deposited monthly into a savings account
C) Fixed expense: $120 monthly car insurance bill
D) Variable expense: $450 montly rent payment - Answers -C) Fixed expense: $120
monthly car insurance bill
The cost of car insurance is affected by the (1 point)
A) kind of car owned
B) expertise of the car salesperson
C) type of gas the car requires
D) number of times the car has been serviced - Answers -A) kind of car owned
Why would a person put a stop payment on a check? (1 point)
A) The payee does not have a checking account
B) To prevent anyone from cashing a check that was lost or stolen
C) To avoid paying a fee for a lost check
, D) To close the checking account - Answers -B) To prevent anyone from cashing a
check that was lost or stolen
A person has a car loan with a 10% interest rate. The loan would cost the least amount
of money if it is paid back in (1 point)
A) 6 years
B) 5 years
C) 4 years
D) 3 years - Answers -D) 3 years
A person finds an error when reviewing her credit report. What can she do? (1 point)
A) Wait one year to see if the error appears on the next report
B) Report the error to her creditors
C) Contact the credit reporting agency immediately about the error
D) Report the error to the Federal Trade Commission - Answers -C) Contact the credit
reporting agency immediately about the error
Why does a corporation issue bonds to the public?
A) it wants to borrow money
B) it wants to lend money
C) it wants to decrease the price of its stock
D) it want to increase the price of its stock - Answers -A) it wants to borrow money
Bankruptcy allows a person to erase all of the following debts EXCEPT for (1 point)
A) credit card charges and installment loans
B) doctors' fees and hospital charges
C) past due rent and car loans
D) income taxes and child support payments - Answers -D) income taxes and child
support payments
Read this paragraph:
"Teenagers generally have money to spend and their spending represents a large
portion of our state and national economy. Teenagers spend billions of dollars each
year. This is because the majority of teenagers living at home and working part-time
generally do not have to pay for a mortgage, electricity, and water bills."
According to the paragraph above, teenagers need to be financially literate because
they are (1 point)
A) paying mortgages
B) working full time
C) spending money
D) living at home with parents - Answers -C) spending money
The line of credit on a person's credit card has been increased from $5,000 to $7,500.
What does the increase mean? (1 point)
A) The credit card company can sue the owner for up to $7,500
The value of buying insurance for a cell phone is to (1 point)
A) Permit an upgrade to a newer model cell phone
B) Be able to replace the cell phone if it is lost or stolen
C) Lower the cost of roaming charges on the cell phone
D) Be able to charge the cell phone service provider. - Answers -B) Be able to replace
the cell phone if it is lost or stolen
If a person has to pay $35 a year on each $100 borrowed, the cost in interest is (1
point)
A) Better than the average debit card fee
B) Worse than our US trade deficit
C) low
D) high - Answers -D) High
When a person wins $5,000 in the lottery, the person will (1 point)
A) Receive the winnings from the Ferseral Reserve Bank (Fed).
B) Receive more than $5,000 because the money earns interest from the day the
winnings are announced
C) have to use the money to pay for an educational expense
D) have to report the $5,000 to the Internal Revenue Service (IRS) as income for that
year. - Answers -D) have to report the $5,000 to the Internal Revenue Service (IRS) as
income for that year
Which budget category is correctly matched with its explanation? (1 point)
A) expense: $50 pair of shoes to go with a new outfit
B) Variable expense: $60 automatically deposited monthly into a savings account
C) Fixed expense: $120 monthly car insurance bill
D) Variable expense: $450 montly rent payment - Answers -C) Fixed expense: $120
monthly car insurance bill
The cost of car insurance is affected by the (1 point)
A) kind of car owned
B) expertise of the car salesperson
C) type of gas the car requires
D) number of times the car has been serviced - Answers -A) kind of car owned
Why would a person put a stop payment on a check? (1 point)
A) The payee does not have a checking account
B) To prevent anyone from cashing a check that was lost or stolen
C) To avoid paying a fee for a lost check
, D) To close the checking account - Answers -B) To prevent anyone from cashing a
check that was lost or stolen
A person has a car loan with a 10% interest rate. The loan would cost the least amount
of money if it is paid back in (1 point)
A) 6 years
B) 5 years
C) 4 years
D) 3 years - Answers -D) 3 years
A person finds an error when reviewing her credit report. What can she do? (1 point)
A) Wait one year to see if the error appears on the next report
B) Report the error to her creditors
C) Contact the credit reporting agency immediately about the error
D) Report the error to the Federal Trade Commission - Answers -C) Contact the credit
reporting agency immediately about the error
Why does a corporation issue bonds to the public?
A) it wants to borrow money
B) it wants to lend money
C) it wants to decrease the price of its stock
D) it want to increase the price of its stock - Answers -A) it wants to borrow money
Bankruptcy allows a person to erase all of the following debts EXCEPT for (1 point)
A) credit card charges and installment loans
B) doctors' fees and hospital charges
C) past due rent and car loans
D) income taxes and child support payments - Answers -D) income taxes and child
support payments
Read this paragraph:
"Teenagers generally have money to spend and their spending represents a large
portion of our state and national economy. Teenagers spend billions of dollars each
year. This is because the majority of teenagers living at home and working part-time
generally do not have to pay for a mortgage, electricity, and water bills."
According to the paragraph above, teenagers need to be financially literate because
they are (1 point)
A) paying mortgages
B) working full time
C) spending money
D) living at home with parents - Answers -C) spending money
The line of credit on a person's credit card has been increased from $5,000 to $7,500.
What does the increase mean? (1 point)
A) The credit card company can sue the owner for up to $7,500
