Exam (elaborations)
WISE FINANCIAL LITERACY TEST 1 QUESTIONS AND ANSWERS
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WISE FINANCIAL LITERACY TEST 1 QUESTIONS AND ANSWERS
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Name: Score:34 Multiple choice questions
Term 1 of 34
Growth stocks
established companies with stable earnings and dividends
companies focused on reducing costs and increasing efficiency
new companies that are trying to grow (you want to invest in them)
companies in decline with decreasing market share
Term 2 of 34
Rule of 72
time deposit
72/interest rate=years
72/years=interest rate
72/interest rate=years
36/years=interest rate
a cash loan from a credit card with higher interest rates
Term 3 of 34
Certificate of Deposit
savings account
passbook savings
more money
time deposit
,Term 4 of 34
If you have a whole life insurance policy with a cash surrender value, and you surrender the
policy, what will you receive?
a calculated amount of money which includes part of the premiums paid as well as the
interest on that money (because they're not going to give you the whole amount back)
-you have to go to your primary care physician who determines whether you should see
a specialist
-co-pays at the primary care physician
regulates what companies can advertise and say about the benefits of their loans or
services, and what info must be disclosed
72/interest rate=years
72/years=interest rate
Term 5 of 34
What investment is the most liquid?
Money market account
Savings account
Checking account
Time deposit
Term 6 of 34
Credit reports
credit reports are only available for purchase
credit reports are used for employment background checks
credit reports contain only personal contact information
you can receive one free one every year from each of the three companies
,Term 7 of 34
What is a bull/bear market?
The current worth of future sums of money
A bull market is a promising market (bull attacks up)
A bear market is a market that isn't doing well (bear attacks down)
an investment that holds a wide range of different investment instruments, providing
diversification
the amounts of money you get taken away from taxes for having dependents
Term 8 of 34
Tax anticipation loans
you can receive one free one every year from each of the three companies
payday lenders
more of the same stock
loans in anticipation of tax refunds
Term 9 of 34
What will happen if you need to cash your certificate of deposit before maturity date?
You will have no financial consequences for early withdrawal
You will earn additional interest for early withdrawal
You will receive a cash bonus for early redemption
You will loose interest and may have a penalty fee
, Term 10 of 34
Mutual Funds
a type of savings account with a fixed interest rate
an investment that holds a wide range of different investment instruments, providing
diversification
a loan provided by a bank for purchasing a car
a government-issued bond with a guaranteed return
Term 11 of 34
Federal Reserve System (Fed)
federal reserve system deals with wildlife conservation
responsible for regulating money, setting bank reserve requirements, and supplying
paper currency
federal reserve system is a social media platform
federal reserve system is a political organization
Term 12 of 34
Managed Health Care Plan
a calculated amount of money which includes part of the premiums paid as well as the
interest on that money (because they're not going to give you the whole amount back)
regulates what companies can advertise and say about the benefits of their loans or
services, and what info must be disclosed
-you have to go to your primary care physician who determines whether you should see
a specialist
-co-pays at the primary care physician
responsible for regulating money, setting bank reserve requirements, and supplying
paper currency
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