WISE Practice Test- Flash Cards Questions And Answers Latest Top Score.
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WISE Practice Test- Flash Cards Questions And Answers Latest Top Score.
Question : To qualify for a Federal Housing Administration (FHA) loan, a person must generally
A: have at least a high school diploma.
B: have one-quarter of the cost of the home
for a down-payment.
C: ...
WISE Practice Test- Flash Cards
Questions And Answers Latest Top
Score.
Question : To qualify for a Federal Housing Administration (FHA) loan, a person must
generally
A: have at least a high school diploma.
B: have one-quarter of the cost of the home
for a down-payment.
C: fulfill income guidelines.
D: provide two individuals to co-sign the loan. - correct answer. C: fulfill income
guidelines.
A high school student has begun to investigate the field of finance as a career choice. In
deciding about the field, the student should focus on which question first?
A: Will I find a balance between financial rewards and personal satisfaction from work?
B: How many people do I know who work in this field?
C: Once I train for this area, how long before I will be
at the top of the field?
D: Are there people in this field who are dissatisfied
with their jobs? - correct answer. A: Will I find a balance between financial rewards
and personal satisfaction from work?
A: Will I find a balance between financial rewards and personal satisfaction from work?
Reason : It is important to investigate a career with the idea of not only getting a sense
of earning potential, types of positions available and the training necessary to acquire
these positions but what are the chances that the individual will enjoy working in this
field. - correct answer. D: An ATM transaction
A company offers a defined-contribution pension plan which means that upon retirement
the employee will receive
, A: one-half of the employee's last year's salary.
B: the total amount of money contributed plus investment
earnings.
C: an amount of money based only on the length of time
the employee worked for the company.
D: a specified amount of money based totally on the profit
earned by the company while the employee worked
there. - correct answer. B: the total amount of money contributed plus investment
earnings.
The interest earned on United States Series EE Savings Bonds is
A: exempt from state and local taxes.
B: paid in a lump sum at the time the face value on the bond is reached.
C: equal to the money paid to purchase it. - correct answer. A: exempt from state and
local taxes.
Reason : The interest rate on US savings bonds is exempt from state and local taxes.
Buying a treasury bill (T-bill) is best for investors who are looking for
A: a place to invest between $100-$500.
B: a secure, low risk investment.
C: a higher yield on their investment than corporate bonds offer.
D: an investment that matures in 10-30 years. - correct answer. B: a secure, low, risk
investment.
Reason : These bills are backed by the full faith and credit of the US government,
therefore considered relatively risk free.
Using a brokerage firm, a qualified investor buys 1000 shares of a common stock at $50
a share on 50% margin. This means that the
A: investor will pay only $5000 for the shares.
B: investor is buying 2000 shares.
C: brokerage firm is lending the investor 50% of the money.
D: brokerage firm will own 50% of the 1000 shares of stock that were purchased. -
correct answer. C: brokerage firm is lending the investor 50% of the money.
Reason : Margin is a speculative method whereby an investor borrows up to 50% of the
money needed from a brokerage firm in order to buy a wanted stock and pays a fee for
the privilege.
To determine the time value of depositing $100 in a savings account, a person needs to
know the interest rate and
, A: her total income.
B: the rate of inflation.
C: whether the account is FDIC protected.
D: whether the bank offers overdraft protection. - correct answer. B: the rate of
inflation.
The amount a lender charges to borrow money is called the:
The cost to use someone else's money for a period of time is called the:
A: Interest rate expressed as a percentage
B: Opportunity cost
C: Minimum payment
D: Inflation rate - correct answer. A: Interest rate expressed as a percentage
Reason : Consumers usually pay a price for the goods and services they buy. The cost
to buy the right to use someone else's money for a period of time is called the interest
rate.
Reason : Compound interest enables the saver to earn interest on the interest that was
earned earlier.
Money received today is worth more than the same amount of money received
sometime in the future is:
A: The Rule of 72
B: The time value of money
C: Not true
D: Investing - correct answer. B: The time value of money
Reason : The time value of money is the concept that money received today is worth
more than the same amount of money received in the future. If you receive $100 today,
you can put it to work immediately through savings or investing immediately.
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