Wise Financial Literacy Test Questions and Answers Graded A+

Wise Financial Literacy Test Questions and Answers Graded A+ What will you receive if you surrender a whole life insurance policy that has a cash surrender value? You will get a specific sum of money, which includes a portion of the premiums you have paid along with accrued interest, but not the total amount you initially paid. What does the term capital gain refer to? It represents the profit earned from selling stocks. Can you explain the concepts of a bull market and a bear market? A bull market is characterized by rising prices and overall optimism (represented by a bull's upward thrust). In contrast, a bear market is marked by declining prices and pessimism (symbolized by a bear's downward swipe). What does an exemption involve in terms of taxes? An exemption is a reduction in your taxable income based on the number of dependents you claim. 2 What does an annual deductible mean? It is the amount you must pay out-of-pocket at the start of the year before your insurance coverage begins. What defines a Managed Health Care Plan? In this plan, you are required to visit your primary care doctor who will decide if you need to see a specialist. Additionally, there are co-payments required for visits to the primary care physician. Which type of life insurance does not accumulate any cash value? Term life insurance. When you reinvest dividends, what are they used to purchase? They are used to acquire additional shares of the same stock. Which is the largest stock exchange globally? The New York Stock Exchange (NYSE). 3 What are mutual funds? Mutual funds are investments that pool money to purchase a diverse array of financial assets, providing broad diversification. What is a money market? It refers to a secure financial