WISE Practice Test 2 Exam Questions With
100% Correct Answers 2024/2025
What should a person do when he believes he is being charged too high a rate of interest for a
loan by a lending institution?
Notify the lending institution about state usury laws.
Which is the best example of a way to reduce fees paid for ATM transactions?
When making supermarket purchases with a debit card, a person adds $50 in cash to the transaction
instead of using an ATM machine.
A person owns a stock that pays a $2.00 a share dividend. If the person chooses to reinvest that
dividend, this means that the $2.00 will go toward buying
more of the same stock.
A dividend reinvestment plan is designed to help the shareholder acquire additional shares
sof the stock by immediately reinvesting the dividend in the same company's stock as soon as the
dividend is declared. The shareholder is still responsible for paying taxes on the dividends earned.
Susan gives Marie her ABC Credit Union debit card and personal identification number (PIN)
so Marie could get $25 from Susan's bank account. Marie withdrew $100 instead of the
agreed to $25. How can Susan get the $75 back?
No bank or government agency is obligated to reimburse Susan because she authorized Marie to use
her ATM card and PIN
Using a brokerage firm, a qualified investor buys 1000 shares of a common stock at $50 a share on
50% margin. This means that the
brokerage firm is lending the investor 50% of the money.
Which documents should be stored in a safe deposit box?
Mortgage loan papers.
What is the largest equities market in the world?
New York Stock Exchange (NYSE)
One of the benefits of holding an investment for over a year rather than selling it in less than a year is
that the
capital gains on the investment will be taxed at a lower rate.
An investor bought 40 shares of ABC corporation's stock at $80 a share. Two weeks later, the investor
receives notice that the corporation has approved a 2-for-1 stock split. Based on this information, the
investor would own at the moment of the split
80 shares of the stock and the price of each share is $40.
A stock split is when the existing stock divides into a larger number of shares and the price of each
share is then reduced accordingly,a 2-for-1 split on 40 shares that is worth $80 would result in 80
shares at $40 at the time of the split. Among other reasons, companies often
decide to declare a stock split when they want to bring in more investors and do not want to issue
more stock
100% Correct Answers 2024/2025
What should a person do when he believes he is being charged too high a rate of interest for a
loan by a lending institution?
Notify the lending institution about state usury laws.
Which is the best example of a way to reduce fees paid for ATM transactions?
When making supermarket purchases with a debit card, a person adds $50 in cash to the transaction
instead of using an ATM machine.
A person owns a stock that pays a $2.00 a share dividend. If the person chooses to reinvest that
dividend, this means that the $2.00 will go toward buying
more of the same stock.
A dividend reinvestment plan is designed to help the shareholder acquire additional shares
sof the stock by immediately reinvesting the dividend in the same company's stock as soon as the
dividend is declared. The shareholder is still responsible for paying taxes on the dividends earned.
Susan gives Marie her ABC Credit Union debit card and personal identification number (PIN)
so Marie could get $25 from Susan's bank account. Marie withdrew $100 instead of the
agreed to $25. How can Susan get the $75 back?
No bank or government agency is obligated to reimburse Susan because she authorized Marie to use
her ATM card and PIN
Using a brokerage firm, a qualified investor buys 1000 shares of a common stock at $50 a share on
50% margin. This means that the
brokerage firm is lending the investor 50% of the money.
Which documents should be stored in a safe deposit box?
Mortgage loan papers.
What is the largest equities market in the world?
New York Stock Exchange (NYSE)
One of the benefits of holding an investment for over a year rather than selling it in less than a year is
that the
capital gains on the investment will be taxed at a lower rate.
An investor bought 40 shares of ABC corporation's stock at $80 a share. Two weeks later, the investor
receives notice that the corporation has approved a 2-for-1 stock split. Based on this information, the
investor would own at the moment of the split
80 shares of the stock and the price of each share is $40.
A stock split is when the existing stock divides into a larger number of shares and the price of each
share is then reduced accordingly,a 2-for-1 split on 40 shares that is worth $80 would result in 80
shares at $40 at the time of the split. Among other reasons, companies often
decide to declare a stock split when they want to bring in more investors and do not want to issue
more stock
