Wise Practice Test Exam Questions With
100% Correct Answers 2024/2025
When buying cell phone insurance, the person should consider the cost of the annual insurance
premium and compare it to the cost of...
...buying a new phone
A person wants to start saving and needs to make withdrawals often. Her money needs to be safe and
to earn interest. What is the best to meet her needs?
Opening a savings account
A person reconciling her checking account notices that the balance in her checkbook register does not
match the balance on the bank statement. What action should she take first?
Determine if all checks issued have cleared
A person asks if checking accounts pay interest. What is the answer?
Some checking accounts pay interest
The 21 days that a credit card company gives to a consumer to pay their bill is known as the...
...grace period
A good reason to get a credit card from a credit union is that their credit cards...
...usually have lower interest rates on unpaid balances
The possibility that a borrower will fail to repay a loan on time and will not be able to repay the loan is
known as the...
...credit risk
A person buys 100 shares of stock for $20 a share. The stock price today is $50. What is his capital
gain per share?
Zero
A person is planning to go away to college next year. The person should open a personal bank account
since it is...
...needed for depositing grant and loan funds
Jacob lost his debit card. If Jacob reports his lost debit card within two business days, he can be held
responsible for...
...up to $50 of unauthorized transactions
A person may not want to "opt-in" or apply for overdraft protection service because he wants to...
...avoid the payment of a fee and a high interest rate
Checking account overdraft protection at a bank is an optional service that is...
...a short-term loan with a high rate of interest
, It is not true that safe deposit boxes...
...allow the owner to access the safe deposit box at any time
What is the definition of "the time value of money"?
$100 received today is worth more than $100 received in the future because it can be put to work to
make money today
A person who wants money to be FDIC insured, will probably deposit the money in a...
...certificate of deposit(CD) at a bank
What statement is true?
The more a person owes, the less he is worth
Credit card companies are allowed to...
...decrease credit limits without giving advance notice
Before a person borrows money from a bank to make a major purchase, what is an important
question to answer?
How much interest will be paid over the life of the loan increasing the real cost of the item?
A single, 28-year-old person, with no assets, has a credit card with a $1,500 balance due. She dies in a
car accident, Who is responsible for paying the $1,500 to the credit card company?
Nobody
A person contacted a mortgage company about refinancing her mortgage. The mortgage company
gave her a home loan with unusually high costs and without regard to her ability to repay. This
practice is called...
...predatory lending
An organization that provides student loans for students in need of financial assistance is...
...the federal government
The Federal Reserve System(FED) stimulates the economy by...
...influencing the lowering of interest rates
A consumer is protected from credit card fraud or abuse through the...
...Truth in Lending Act
The more risk an insurance company has to take when insuring a person, the...
...higher the cost of the premium
A person bought a $50,000 life insurance policy. The $50,000 amount of coverage is called the...
...death benefit or face value(which is the amount of money that a life insurance policy will pay the
beneficiary)
100% Correct Answers 2024/2025
When buying cell phone insurance, the person should consider the cost of the annual insurance
premium and compare it to the cost of...
...buying a new phone
A person wants to start saving and needs to make withdrawals often. Her money needs to be safe and
to earn interest. What is the best to meet her needs?
Opening a savings account
A person reconciling her checking account notices that the balance in her checkbook register does not
match the balance on the bank statement. What action should she take first?
Determine if all checks issued have cleared
A person asks if checking accounts pay interest. What is the answer?
Some checking accounts pay interest
The 21 days that a credit card company gives to a consumer to pay their bill is known as the...
...grace period
A good reason to get a credit card from a credit union is that their credit cards...
...usually have lower interest rates on unpaid balances
The possibility that a borrower will fail to repay a loan on time and will not be able to repay the loan is
known as the...
...credit risk
A person buys 100 shares of stock for $20 a share. The stock price today is $50. What is his capital
gain per share?
Zero
A person is planning to go away to college next year. The person should open a personal bank account
since it is...
...needed for depositing grant and loan funds
Jacob lost his debit card. If Jacob reports his lost debit card within two business days, he can be held
responsible for...
...up to $50 of unauthorized transactions
A person may not want to "opt-in" or apply for overdraft protection service because he wants to...
...avoid the payment of a fee and a high interest rate
Checking account overdraft protection at a bank is an optional service that is...
...a short-term loan with a high rate of interest
, It is not true that safe deposit boxes...
...allow the owner to access the safe deposit box at any time
What is the definition of "the time value of money"?
$100 received today is worth more than $100 received in the future because it can be put to work to
make money today
A person who wants money to be FDIC insured, will probably deposit the money in a...
...certificate of deposit(CD) at a bank
What statement is true?
The more a person owes, the less he is worth
Credit card companies are allowed to...
...decrease credit limits without giving advance notice
Before a person borrows money from a bank to make a major purchase, what is an important
question to answer?
How much interest will be paid over the life of the loan increasing the real cost of the item?
A single, 28-year-old person, with no assets, has a credit card with a $1,500 balance due. She dies in a
car accident, Who is responsible for paying the $1,500 to the credit card company?
Nobody
A person contacted a mortgage company about refinancing her mortgage. The mortgage company
gave her a home loan with unusually high costs and without regard to her ability to repay. This
practice is called...
...predatory lending
An organization that provides student loans for students in need of financial assistance is...
...the federal government
The Federal Reserve System(FED) stimulates the economy by...
...influencing the lowering of interest rates
A consumer is protected from credit card fraud or abuse through the...
...Truth in Lending Act
The more risk an insurance company has to take when insuring a person, the...
...higher the cost of the premium
A person bought a $50,000 life insurance policy. The $50,000 amount of coverage is called the...
...death benefit or face value(which is the amount of money that a life insurance policy will pay the
beneficiary)
