Wise Practice Exam Answers
If you have caused an accident, which type of automobile insurance would cover damage to your own
car?
Collision
Matt and Eric are young men. Each has a good credit history. They work at the same company and
make approximately the same salary. Matt has borrowed $6,000 to take a foreign vacation. Eric has
borrowed $6,000 to buy a car. Who is likely to pay the lowest finance charge?
Eric will pay less because the car is collateral for the loan.
If you went to college and earned a 4-year degree, how much money could you expect to earn than if
you only had a high school diploma?
a lot more; about 70% more.
Many savings programs are protected by the Federal government against loss. Which of the following
is not?
A bond issue by one of the 50 states
If each of the following persons had the same amount of take home pay, who would need the
greatest amount of life insurance?
A young single woman with two young children.
Which of the following instruments in NOT typically associated with spending?
Certificate of deposit
Which of the following credit card users is likely to pay the GREATEST dollar amount in finance
charges per year, if they all charge the same amount per year on their cards?
Jessica, who only pays the minimum amount each month.
Which of the following statements is true?
Banks and other lenders share the credit history of their borrowers with each other and are likely to
know of any loan payments that you have missed.
Doug must borrow $12,000 to complete his college education. Which of the following would NOT be
likely to reduce the finance charge rate?
If he went to a state college rather than a private college.
If you had a savings account at a bank, which of the following would be correct concerning the
interest that you would earn on this account?
Income tax may be charged on the interest if your income is high enough
Inflation can cause difficulty in many ways. Which group would have the greatest problem during
periods of high inflation that last several years?
Older people living on fixed retirement income.
If you have caused an accident, which type of automobile insurance would cover damage to your own
car?
Collision
Matt and Eric are young men. Each has a good credit history. They work at the same company and
make approximately the same salary. Matt has borrowed $6,000 to take a foreign vacation. Eric has
borrowed $6,000 to buy a car. Who is likely to pay the lowest finance charge?
Eric will pay less because the car is collateral for the loan.
If you went to college and earned a 4-year degree, how much money could you expect to earn than if
you only had a high school diploma?
a lot more; about 70% more.
Many savings programs are protected by the Federal government against loss. Which of the following
is not?
A bond issue by one of the 50 states
If each of the following persons had the same amount of take home pay, who would need the
greatest amount of life insurance?
A young single woman with two young children.
Which of the following instruments in NOT typically associated with spending?
Certificate of deposit
Which of the following credit card users is likely to pay the GREATEST dollar amount in finance
charges per year, if they all charge the same amount per year on their cards?
Jessica, who only pays the minimum amount each month.
Which of the following statements is true?
Banks and other lenders share the credit history of their borrowers with each other and are likely to
know of any loan payments that you have missed.
Doug must borrow $12,000 to complete his college education. Which of the following would NOT be
likely to reduce the finance charge rate?
If he went to a state college rather than a private college.
If you had a savings account at a bank, which of the following would be correct concerning the
interest that you would earn on this account?
Income tax may be charged on the interest if your income is high enough
Inflation can cause difficulty in many ways. Which group would have the greatest problem during
periods of high inflation that last several years?
Older people living on fixed retirement income.
