WISE TEST ACTUAL EXAM PAPER 2026
QUESTIONS WITH ANSWERS GRADED A+
◍ Collateral.
Answer: security given for loan, assets to secure the debt
◍ Mutual Funds.
Answer: an investment that holds a wide range of different investment
instruments, providing diversification
◍ FDIC insures up to.
Answer: $250,000
◍ What is the only type of life insurance without a cash value?.
Answer: Term
◍ Market Value.
Answer: the price at which a share of stock can be bought and sold in the
stock market
◍ Exercise Tax.
Answer: A person complains about how expensive it is to be a cigarette
smoker. One of the reasons cigarettes are so expensive is that
◍ Money Market.
Answer: safe, bank offering
◍ When you reinvest dividends, what does that go towards buying?.
Answer: More of the same stock
◍ Compound Interest.
Answer: interest computed on the amount saved plus the interest previously
earned
◍ Truth in Lending Act.
, Answer: Which of the following is the federal law that requires the cost of
credit be disclosed
◍ growth stock.
Answer: stock from growing companies, more risk
◍ Growth stocks.
Answer: new companies that are trying to grow (you want to invest in them)
◍ Department store charge cards..
Answer: Which of the following is considered to be open-end credit?
◍ Capacity.
Answer: your ability to repay the debt. Do you have sufficient $money to
repay a loan
◍ Truth in Lending Act.
Answer: regulates what companies can advertise and say about the benefits
of their loans or services, and what info must be disclosed
◍ ATM.
Answer: Automated Teller Machine that is electronically connected to an
individual's bank account
◍ What is an exemption?.
Answer: the amounts of money you get taken away from taxes for having
dependents
◍ Credit Union.
Answer: a group of people, self owned, non profit
◍ Liquidity.
Answer: access to funds to cover any short term cash deficiencies
◍ Managed Health Care Plan.
Answer: -you have to go to your primary care physician who determines
whether you should see a specialist-co-pays at the primary care physician
◍ Annual deductible.
, Answer: What you have to pay in the beginning of the year before insurance
kicks in
◍ Tax anticipation loans.
Answer: loans in anticipation of tax refunds
◍ Monetary policy.
Answer: Which of the following does the Federal Reserve use to regulate
the nation's money supply?
◍ liquidity.
Answer: how easily an asset can be converted into cash
◍ Capital Loss.
Answer: if a stock decreases in value and is then sold for less than its
original cost
◍ What will happen if you need to cash your certificate of deposit before
maturity date?.
Answer: You will loose interest and may have a penalty fee
◍ includes the premiums paid as well as the interest.
Answer: The person decides to surrender the policy. At the time of
surrender, the person will receive
◍ FDIC.
Answer: the federal government protects your money up to $250,000 in a
single account
◍ savings account.
Answer: an account in a bank/financial institution for saving, making
deposits/withdrawals
◍ Fixed income.
Answer: inflation doesnt matter so it doesnt help
◍ budget variance.
Answer: the difference between the budgeted amount and the actual amount
that you spend
QUESTIONS WITH ANSWERS GRADED A+
◍ Collateral.
Answer: security given for loan, assets to secure the debt
◍ Mutual Funds.
Answer: an investment that holds a wide range of different investment
instruments, providing diversification
◍ FDIC insures up to.
Answer: $250,000
◍ What is the only type of life insurance without a cash value?.
Answer: Term
◍ Market Value.
Answer: the price at which a share of stock can be bought and sold in the
stock market
◍ Exercise Tax.
Answer: A person complains about how expensive it is to be a cigarette
smoker. One of the reasons cigarettes are so expensive is that
◍ Money Market.
Answer: safe, bank offering
◍ When you reinvest dividends, what does that go towards buying?.
Answer: More of the same stock
◍ Compound Interest.
Answer: interest computed on the amount saved plus the interest previously
earned
◍ Truth in Lending Act.
, Answer: Which of the following is the federal law that requires the cost of
credit be disclosed
◍ growth stock.
Answer: stock from growing companies, more risk
◍ Growth stocks.
Answer: new companies that are trying to grow (you want to invest in them)
◍ Department store charge cards..
Answer: Which of the following is considered to be open-end credit?
◍ Capacity.
Answer: your ability to repay the debt. Do you have sufficient $money to
repay a loan
◍ Truth in Lending Act.
Answer: regulates what companies can advertise and say about the benefits
of their loans or services, and what info must be disclosed
◍ ATM.
Answer: Automated Teller Machine that is electronically connected to an
individual's bank account
◍ What is an exemption?.
Answer: the amounts of money you get taken away from taxes for having
dependents
◍ Credit Union.
Answer: a group of people, self owned, non profit
◍ Liquidity.
Answer: access to funds to cover any short term cash deficiencies
◍ Managed Health Care Plan.
Answer: -you have to go to your primary care physician who determines
whether you should see a specialist-co-pays at the primary care physician
◍ Annual deductible.
, Answer: What you have to pay in the beginning of the year before insurance
kicks in
◍ Tax anticipation loans.
Answer: loans in anticipation of tax refunds
◍ Monetary policy.
Answer: Which of the following does the Federal Reserve use to regulate
the nation's money supply?
◍ liquidity.
Answer: how easily an asset can be converted into cash
◍ Capital Loss.
Answer: if a stock decreases in value and is then sold for less than its
original cost
◍ What will happen if you need to cash your certificate of deposit before
maturity date?.
Answer: You will loose interest and may have a penalty fee
◍ includes the premiums paid as well as the interest.
Answer: The person decides to surrender the policy. At the time of
surrender, the person will receive
◍ FDIC.
Answer: the federal government protects your money up to $250,000 in a
single account
◍ savings account.
Answer: an account in a bank/financial institution for saving, making
deposits/withdrawals
◍ Fixed income.
Answer: inflation doesnt matter so it doesnt help
◍ budget variance.
Answer: the difference between the budgeted amount and the actual amount
that you spend
