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Personal Finance WISE Test Questions and answers | Latest 2024/25 RATED A+
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Personal Finance WISE Test Questions and answers | Latest 2024/25 RATED A+
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Personal Finance WISE Test Questionsand answers | Latest 2024/25 RATED A+
Inflation - the rise in the level of prices for goods and services
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Time Value of Money - the increase of an amount of money due to earned interest or
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dividends
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Balance Sheet - statement that identifies the items you own, what you owe, and your net
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worth
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Paying Yourself First - the concept of setting aside a portion of your income for savings
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before spending any of it
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Commission - a fee charged by a brokerage firm or investment bank to buy or sell
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securities of an investor
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II Potential Earning Power - the amount of money you may earn over time
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II Finance Charge - the total dollar amount of interest you pay to use credit
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Compounding - the process of earning interest on both the principal and any prior
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interest earned in your account
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II Medicare - is a government sponsored health care coverage for the elderly
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Credit Limit - The maximum dollar amount of money the creditor will make available to
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you on your credit card
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II Medicaid - is a government sponsored health care plan for people with low income
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Grace Period - the amount of time a credit card company provides before you incur
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finance charges
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Liquidity - the ability to easily convert your financial resources into cash without loss of
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value
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Annual Percentage Yield - term for the amount of interest that a $100 deposit would earn
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after compounding for one year (as defined by law)
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II 401(k) - sets aside a portion of your pay, plus (usually) an employer match.
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Economics - The study of the decisions that go into making, distributing and using goods
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and services.
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, Dealer Invoice Price - Price the car dealer paid to purchase the car from the
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manufacturer.
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Opportunity Cost - A trade-off or what you are giving up when you make one choice over
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another.
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Diversification - A strategy of investing in a broad range and number of companies in
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order to limit the potential investment risk.
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Deductible - Is the amount of loss you pay out-of-pocket before the insurance company
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pays their portion.
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II Networking - A way of making and using contacts to get job information and advice. II II II II II II II II II II II II II II II II
Standard of Living - The measure of quality of life based on the amounts and kinds of
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goods and services a person can buy.
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II Pension - A retirement plan that is funded, at least in part, by an employer.
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II Net Worth - Difference between what you own and what you owe.
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II Diversification & Professional Management - Advantages of a mutual fund. II II II II II II II II II II II
II Small Cap Stock - A company with a market capitalization of $1 billion.
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Budget Variance - Difference between the budgeted amount and the actual amount
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spent.
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Revolver - The term banks use for someone who does NOT pay their credit card balance
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in full each month, and instead incurs finance charges.
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Credit CARD Act - Bans unfair rate increases, prevents unfair fee traps, protects
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students and young people
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2-4% - What percent of your outstanding balance do credit card companies require you
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to pay each month as your minimum?
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II $50 - Maximum amount of fraudulent charges you are responsible for.
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Greater than tax liability - You would be eligible for a tax refund if the amount withheld
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from your paycheck is:
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Bull Market - A market where investors are optimistic about the economy and the
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potential for stock growth.
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