Economics and personal finance wise test practice|Complete
Questions with A+ Graded Answers
A person receives a $200 gift card. It is important for the person to?
Read the conditions on the card or packaging about inactivity fees
Which is the most important question to ask when comparing credit car offers?
What is the APR on the credit card
A person had a car loan with a 10% interest rate. The loan would cost the least amount if it is paid
back in?
3 years
Which approach to money management indicates an understanding of the time value of money?
Saving money in an account thy earns interest
A stock is characterized as a "growth" stock because the expectation is for the corporation to?
Provide shareholders with dividends
The value of buying insurance for a cell phone is to?
Be able to replace the cell phone if it is lost or stolen
A person who is interested in earning investing income from stocks is generally advised to buy stocks
that pay?
Dividends
A benefit of using a debit card is that it provides a way to?
Limit the amount of cash a person needs to carry
The purpose of having a diversified investment portfolio is to?
Lower the investment risk
One advantage of having a bank savings account is that it?
Is a reliable way to earn interest while establishing a personal financial history
The rule of 72 is used to determine?
How long it takes for money to double at a given interest rate
When thinking about taking a loan from a non-bank consumer finance company, a person needs to
know that he?
Should first compare rates with banks and credit unions
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 pay for mortgage, electricity, and
water bills.
According to the paragraph above, teenagers need to be financially literate because they are?
Spending money
What happens if a person always pays the minimum balance due instead of the full balance on her
monthly credit car bill?
It will take a longer time for her to pay the amount owed on the credit card
A person investing 3% of a $31,000 salary each year in a 401(k) staring at age 25 will have much more
money at age 70 that someone who waited until 50 to invest 3% each year of a $55,000 salary. Why is
this true?
The invested money has had a longer period i time to benefit from compounding and investment
gains
The cost of car insurance is affected by the?
Kind of car owned
The college student had a joint credit car with her mother. During the first semester, the student
charges a total of $1,500 for gas, food, and books. The credit card bill for $1,500 will have to be paid
by the?
Mother and/or the student since both individuals are responsible for repaying any debt
Which is the most difficult budget item for a person to change?
Fixed expenses
A persons net worth is $10,000. He had $25,000 in assets. How much does he have in liabilities
$15,000
When a person wins $5,000 in the lottery the person will?
Have to report the $5,000 to the IRS as income for that year
When determining the dollar value of a job offer which benefit should NOT be included?
A private office
A person had two credit cards as shown below
Credit. Current. Available. Credit
Card. Balance Credit. Line
A. $0. $15,000. $15,000
B. $5,000. $20,000. $25,000
The amount of money the credit report will show that the person owes is?
$5,000
A person received an email from his bank requesting his social security number. The first action the
person should take is to?
Questions with A+ Graded Answers
A person receives a $200 gift card. It is important for the person to?
Read the conditions on the card or packaging about inactivity fees
Which is the most important question to ask when comparing credit car offers?
What is the APR on the credit card
A person had a car loan with a 10% interest rate. The loan would cost the least amount if it is paid
back in?
3 years
Which approach to money management indicates an understanding of the time value of money?
Saving money in an account thy earns interest
A stock is characterized as a "growth" stock because the expectation is for the corporation to?
Provide shareholders with dividends
The value of buying insurance for a cell phone is to?
Be able to replace the cell phone if it is lost or stolen
A person who is interested in earning investing income from stocks is generally advised to buy stocks
that pay?
Dividends
A benefit of using a debit card is that it provides a way to?
Limit the amount of cash a person needs to carry
The purpose of having a diversified investment portfolio is to?
Lower the investment risk
One advantage of having a bank savings account is that it?
Is a reliable way to earn interest while establishing a personal financial history
The rule of 72 is used to determine?
How long it takes for money to double at a given interest rate
When thinking about taking a loan from a non-bank consumer finance company, a person needs to
know that he?
Should first compare rates with banks and credit unions
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 pay for mortgage, electricity, and
water bills.
According to the paragraph above, teenagers need to be financially literate because they are?
Spending money
What happens if a person always pays the minimum balance due instead of the full balance on her
monthly credit car bill?
It will take a longer time for her to pay the amount owed on the credit card
A person investing 3% of a $31,000 salary each year in a 401(k) staring at age 25 will have much more
money at age 70 that someone who waited until 50 to invest 3% each year of a $55,000 salary. Why is
this true?
The invested money has had a longer period i time to benefit from compounding and investment
gains
The cost of car insurance is affected by the?
Kind of car owned
The college student had a joint credit car with her mother. During the first semester, the student
charges a total of $1,500 for gas, food, and books. The credit card bill for $1,500 will have to be paid
by the?
Mother and/or the student since both individuals are responsible for repaying any debt
Which is the most difficult budget item for a person to change?
Fixed expenses
A persons net worth is $10,000. He had $25,000 in assets. How much does he have in liabilities
$15,000
When a person wins $5,000 in the lottery the person will?
Have to report the $5,000 to the IRS as income for that year
When determining the dollar value of a job offer which benefit should NOT be included?
A private office
A person had two credit cards as shown below
Credit. Current. Available. Credit
Card. Balance Credit. Line
A. $0. $15,000. $15,000
B. $5,000. $20,000. $25,000
The amount of money the credit report will show that the person owes is?
$5,000
A person received an email from his bank requesting his social security number. The first action the
person should take is to?
