Exam (elaborations)
WISE TEST REVIEW QUESTIONS AND ANSWERS
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WISE TEST REVIEW QUESTIONS AND ANSWERS
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Name: Score:50 Multiple choice questions
Term 1 of 50
What is a credit card cash advance?
A type of savings account offered by credit unions.
A loan from a person's credit card company.
A gift from a bank to a customer.
A fee charged for using a debit card.
Term 2 of 50
The purpose of investing is to
increase wealth over time.
prevent hi-tech counterfeiting.
reduce this variable expenses.
to cover the costs of damage to, or loss of a home.
Term 3 of 50
The value of buying insurance for a cell phone is to
provide a warranty for any type of electronic device.
ensure that the phone will never break or malfunction.
increase the monthly bill for the phone service.
be able to replace the cell phone if it is lost or stolen.
,Term 4 of 50
Why is the seller of a used car asking the buyer for an official bank check?
The seller is trying to avoid paying taxes on the sale.
The seller wants to ensure the buyer has sufficient funds in their account.
The seller is looking to negotiate a lower price.
The seller wants a form of payment that is guaranteed to be as good as cash.
Term 5 of 50
A person wants to open a bank account in his name. He will be required to give the bank
raise money to expand business activities.
there is an emergency need for cash
a state or federal-issued picture identification.
move the money from the 401(k) plan into another qualified retirement plan
Term 6 of 50
A student is interested in becoming an engineer, for her a major advantage of doing an unpaid
internship at an engineering firm is having the opportunity to
avoid having to take any classes in engineering.
get a guaranteed job offer after the internship.
learn about the profession from people in the company
earn a salary that is higher than her current job.
,Term 7 of 50
A credit card is issued to John and Maria Davis. This month, John charges $100 and Maria makes
no charges. When the bill is received who is legally responsible for paying the $100
Inflation
Reduce this Variable Expenses.
Both John and Maria
Total Cost of the Loan
Term 8 of 50
Which credit card term is correctly matched with its explanation?
Credit limit: the maximum amount a person can spend on a credit card.
Due Date: the date by which the credit card company must receive a person's required
payment in order to avoid a late fee.
Annual fee: a charge for maintaining the credit card account.
Minimum payment: the least amount a person can pay to keep the account active.
Term 9 of 50
Who suffers the LEAST when the rate of inflation increases?
individuals who have no debt at all.
those who have variable-rate loans.
people who are saving for a large purchase.
: People who have a loan with a fixed-interest rate.
, Term 10 of 50
A person may need to have liquid assets when
to pay off a mortgage that is due soon.
there is an emergency need for cash
to save for a vacation planned for next year.
to invest in long-term assets like real estate.
Term 11 of 50
What is the purpose of homeowners insurance?
To cover the costs of damage to, or loss of a home.
To help homeowners invest in real estate properties.
To protect against natural disasters only.
To provide financial assistance for home renovations.
Term 12 of 50
Which action shows that a person is in SEVERE financial trouble?
Saving money for future investments.
Having to borrow money each month to pay for food and rent.
Having a stable job with a good salary.
Owning multiple credit cards with high limits.
Term 13 of 50
An advantage of using a bank is that generally
capital gains from the sale of stock.
there is an emergency need for cash
learn about the profession from people in the company
its savings accounts are FDIC insured
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