WISE Test (A+ Guaranteed)
One of Andre's seldom-used credit cards has been stolen without his knowledge. When he gets
his monthly statement, he realizes that someone else has been using the card and reports it stolen.
The maximum amount of unauthorized purchases he is liable for is: correct answers $50
Consumers who file for bankruptcy are still responsible for: correct answers Tax claims and
student loans
Which of the following provides an increase in assets or wealth? correct answers Having capital
gains
The denominations of coins in the United States are: correct answers $.01, $.05, $.10, $.25, $.50,
$1.00
Mutual funds are: correct answers An investment that holds a wide range of different investment
instruments, providing diversification
Michele and Claudia have a seven year old son. They won $50,000 on a TV games show and
want to put it away for their son's education. Which of the following has the highest potential
growth and the highest risk? correct answers Common Stock
Banks use savings account deposits to: correct answers Give loans to consumers and businesses
You have a checking account balance of $100 and you deposit a personal $200 check from your
brother in you checking account. When will you be able to withdraw $150 in cash? correct
answers 3 to 7 days later, depending on your bank's check clearance policy
Why is term life insurance usually the least expensive type of life insurance? correct answers
The policy only pays a death benefit
Neil will be traveling by air in Southeast Asia for six-week vacation. Which step will not provide
protection during the trip? correct answers Take his passport
Victims of predatory lending practices are typically: correct answers The elderly and people with
a poor credit history
How can you avoid becoming a victim of identity theft? correct answers Avoid giving your
Social Security number on a phone call you did not initate
Which of the following statements is usually true about indivuals who are financially literate?
correct answers They understand the basics of personal finance and money management
Which of the following is a disadvantage of using phone cards, debit cards, electronic transfers,
and ATM cards? correct answers They expose consumers to greater likelihood of identity theft
, The price of the Candy Corporation Stock will generally increase when there is: correct answers
Positive news about corporate earnings
The process of setting aside money and putting it to work by having it earn intrest or dividends
or gain value in the equities market with the idea of having additional funds to use in the future is
described as: correct answers Savings and Investing
The most liquid type of investment is: correct answers A money market account
Joan wants to open a checking account and wonders if checking accounts pay interest. How
would you answer her question? correct answers Some types of checking accounts pay interest
The purpose of Insurance is NOT to: correct answers Diversify an investment portfolio
Generally, the higher the deductible on an insurance policy, the correct answers Lower the
premium
A credit card finance charge is: correct answers The dollar amount it cost to use credit
Approximately, what is the annual finance charge for each $100 owed on a credit card with a
16% annual interest rate (APR)? correct answers $16.00
New coins and currency make their way into the general economy, consumers and businesses,
through the distribution system of the: correct answers Federal Reserve System
Which of the following provides an increase in assets or wealth? correct answers Having capital
gains
A factor that is likely to affect the market price of a stock is: correct answers Corporate profits
An investor buys 100 shares of a common stock @ $36.00 a share. The stock is now selling at
$38.00 a share. When deciding whether to hold or sell the stock, which factor is it important for
the investor to consider? correct answers The commission charged for buying and selling the
stock
Margaret wants to store a valuable coin collection and important papers. Generally, consumers
should: correct answers Rent a safe deposit box for their valuebles
The term used to describe the ease and speed with which you can convert savings or an
investment to cash is: correct answers Liquidty
Richard's auto insurance policy ecpired on the 5/15/2002. Richard was upset with his insurance
agent and decided to change insureance companies. At 10:00am on 5/16/2002, as he drove to a
different agent to buy a new policy, he had an accident. Who is liable for the damage to his car
and his personal injuries? correct answers Richard
One of Andre's seldom-used credit cards has been stolen without his knowledge. When he gets
his monthly statement, he realizes that someone else has been using the card and reports it stolen.
The maximum amount of unauthorized purchases he is liable for is: correct answers $50
Consumers who file for bankruptcy are still responsible for: correct answers Tax claims and
student loans
Which of the following provides an increase in assets or wealth? correct answers Having capital
gains
The denominations of coins in the United States are: correct answers $.01, $.05, $.10, $.25, $.50,
$1.00
Mutual funds are: correct answers An investment that holds a wide range of different investment
instruments, providing diversification
Michele and Claudia have a seven year old son. They won $50,000 on a TV games show and
want to put it away for their son's education. Which of the following has the highest potential
growth and the highest risk? correct answers Common Stock
Banks use savings account deposits to: correct answers Give loans to consumers and businesses
You have a checking account balance of $100 and you deposit a personal $200 check from your
brother in you checking account. When will you be able to withdraw $150 in cash? correct
answers 3 to 7 days later, depending on your bank's check clearance policy
Why is term life insurance usually the least expensive type of life insurance? correct answers
The policy only pays a death benefit
Neil will be traveling by air in Southeast Asia for six-week vacation. Which step will not provide
protection during the trip? correct answers Take his passport
Victims of predatory lending practices are typically: correct answers The elderly and people with
a poor credit history
How can you avoid becoming a victim of identity theft? correct answers Avoid giving your
Social Security number on a phone call you did not initate
Which of the following statements is usually true about indivuals who are financially literate?
correct answers They understand the basics of personal finance and money management
Which of the following is a disadvantage of using phone cards, debit cards, electronic transfers,
and ATM cards? correct answers They expose consumers to greater likelihood of identity theft
, The price of the Candy Corporation Stock will generally increase when there is: correct answers
Positive news about corporate earnings
The process of setting aside money and putting it to work by having it earn intrest or dividends
or gain value in the equities market with the idea of having additional funds to use in the future is
described as: correct answers Savings and Investing
The most liquid type of investment is: correct answers A money market account
Joan wants to open a checking account and wonders if checking accounts pay interest. How
would you answer her question? correct answers Some types of checking accounts pay interest
The purpose of Insurance is NOT to: correct answers Diversify an investment portfolio
Generally, the higher the deductible on an insurance policy, the correct answers Lower the
premium
A credit card finance charge is: correct answers The dollar amount it cost to use credit
Approximately, what is the annual finance charge for each $100 owed on a credit card with a
16% annual interest rate (APR)? correct answers $16.00
New coins and currency make their way into the general economy, consumers and businesses,
through the distribution system of the: correct answers Federal Reserve System
Which of the following provides an increase in assets or wealth? correct answers Having capital
gains
A factor that is likely to affect the market price of a stock is: correct answers Corporate profits
An investor buys 100 shares of a common stock @ $36.00 a share. The stock is now selling at
$38.00 a share. When deciding whether to hold or sell the stock, which factor is it important for
the investor to consider? correct answers The commission charged for buying and selling the
stock
Margaret wants to store a valuable coin collection and important papers. Generally, consumers
should: correct answers Rent a safe deposit box for their valuebles
The term used to describe the ease and speed with which you can convert savings or an
investment to cash is: correct answers Liquidty
Richard's auto insurance policy ecpired on the 5/15/2002. Richard was upset with his insurance
agent and decided to change insureance companies. At 10:00am on 5/16/2002, as he drove to a
different agent to buy a new policy, he had an accident. Who is liable for the damage to his car
and his personal injuries? correct answers Richard
