Wise Practice Test Exam Questions with 100%
Correct Answers
budget variance.
the difference between the budgeted amount and the actual amount that you spend
debt ratio
shows the relationship between debt and net worth.
debt ratio
The lower the ratio the better off financially the person is.
debt ratio
calculated by dividing liabilities by net worth
excise tax
government imposes a tax on specific goods and services such as alcohol, cigarettes, gasoline, and
airline
capital gains
are profits made from the sale of capital assets such as stocks and bonds
Capital gains
tax deferred until the asset is sold,
Capital Gains Tax
If held over one year are considered long-term capital gains and are taxed at a lower tax rate or in
some cases are not taxed at all.
variable expenses
change from one period to another,examples Electricity and food expenditures
get advice from your friends
will help you the least in managing your money?
Financial planning
the process of developing and implementing a coordinated series of actions to achieve financial
success.
Financial planning
need to be reviewed and adjusted to accommodate changing needs and goals.
emergency fund
Should be an important consideration when saving money
, liquidity
being in cash or easily convertible to cash, How easily an asset can be converted into cash
Social Security
benefits depends on the person?s earnings over a lifetime of work
Department store charge cards.
open-end credit
Department store charge cards.
is a revolving live of credit that is offered by banks There is a limit set on the line of credit and the
funds
mortgage loan
closed-end credit,made at a specified interest rate for a specified time period.
collateralized loan.
A loan that is secured by collateral, properties or assets that are subject to seizure on default.
collateralized loan.
When a person brings an item to a pawnshop to obtain cash, the transaction is considered
Federal Housing Administration (FHA) loan
insures lenders who make mortgage loans that are riskier than regular bank loans because
uncollateralized loan
A personal loan without assets to cover the loan amount.
Collateral
tangible asset that is used to secure a loan. In the case of a mortgage, the actual house or apartment
serves as the collateral for that loan.
bankruptcy
will appear on the person?s credit report for 10 years
Notify the credit card companies in order to negotiate a new payment plan.
Notify the credit card companies in order to negotiate a new payment plan.
Installment loan
a loan repaid with interest in equal periodic payments
dispose of a credit card
Correct Answers
budget variance.
the difference between the budgeted amount and the actual amount that you spend
debt ratio
shows the relationship between debt and net worth.
debt ratio
The lower the ratio the better off financially the person is.
debt ratio
calculated by dividing liabilities by net worth
excise tax
government imposes a tax on specific goods and services such as alcohol, cigarettes, gasoline, and
airline
capital gains
are profits made from the sale of capital assets such as stocks and bonds
Capital gains
tax deferred until the asset is sold,
Capital Gains Tax
If held over one year are considered long-term capital gains and are taxed at a lower tax rate or in
some cases are not taxed at all.
variable expenses
change from one period to another,examples Electricity and food expenditures
get advice from your friends
will help you the least in managing your money?
Financial planning
the process of developing and implementing a coordinated series of actions to achieve financial
success.
Financial planning
need to be reviewed and adjusted to accommodate changing needs and goals.
emergency fund
Should be an important consideration when saving money
, liquidity
being in cash or easily convertible to cash, How easily an asset can be converted into cash
Social Security
benefits depends on the person?s earnings over a lifetime of work
Department store charge cards.
open-end credit
Department store charge cards.
is a revolving live of credit that is offered by banks There is a limit set on the line of credit and the
funds
mortgage loan
closed-end credit,made at a specified interest rate for a specified time period.
collateralized loan.
A loan that is secured by collateral, properties or assets that are subject to seizure on default.
collateralized loan.
When a person brings an item to a pawnshop to obtain cash, the transaction is considered
Federal Housing Administration (FHA) loan
insures lenders who make mortgage loans that are riskier than regular bank loans because
uncollateralized loan
A personal loan without assets to cover the loan amount.
Collateral
tangible asset that is used to secure a loan. In the case of a mortgage, the actual house or apartment
serves as the collateral for that loan.
bankruptcy
will appear on the person?s credit report for 10 years
Notify the credit card companies in order to negotiate a new payment plan.
Notify the credit card companies in order to negotiate a new payment plan.
Installment loan
a loan repaid with interest in equal periodic payments
dispose of a credit card
