Wise Practice Test Study/88
Questions and Answers with correct
solutions.
Budget variance. - -the difference between the budgeted amount and the
actual amount that you spend
-debt ratio - -shows the relationship between debt and net worth.
-debt ratio - -The lower the ratio the better off financially the person is.
-debt ratio - -calculated by dividing liabilities by net worth
-excise tax - -government imposes a tax on specific goods and services
such as alcohol, cigarettes, gasoline, and airline
-capital gains - -are profits made from the sale of capital assets such as
stocks and bonds
-Capital gains - -tax deferred until the asset is sold,
-Capital Gains Tax - -If held over one year are considered long-term capital
gains and are taxed at a lower tax rate or in some cases are not taxed at all.
-variable expenses - -change from one period to another,examples
Electricity and food expenditures
-get advice from your friends - -will help you the least in managing your
money?
-Financial planning - -the process of developing and implementing a
coordinated series of actions to achieve financial success.
-Financial planning - -need to be reviewed and adjusted to accommodate
changing needs and goals.
-emergency fund - -Should be an important consideration when saving
money
-liquidity - -being in cash or easily convertible to cash, How easily an asset
can be converted into cash
, -Social Security - -benefits depends on the person?s earnings over a lifetime
of work
-Department store charge cards. - -open-end credit
-Department store charge cards. - -is a revolving live of credit that is
offered by banks There is a limit set on the line of credit and the funds
-mortgage loan - -closed-end credit,made at a specified interest rate for a
specified time period.
-collateralized loan. - -A loan that is secured by collateral, properties or
assets that are subject to seizure on default.
-collateralized loan. - -When a person brings an item to a pawnshop to
obtain cash, the transaction is considered
-Federal Housing Administration (FHA) loan - -insures lenders who make
mortgage loans that are riskier than regular bank loans because
-uncollateralized loan - -A personal loan without assets to cover the loan
amount.
-Collateral - -tangible asset that is used to secure a loan. In the case of a
mortgage, the actual house or apartment serves as the collateral for that
loan.
-bankruptcy - -will appear on the person?s credit report for 10 years
-Notify the credit card companies in order to negotiate a new payment plan.
- -Notify the credit card companies in order to negotiate a new payment
plan.
-Installment loan - -a loan repaid with interest in equal periodic payments
-dispose of a credit card - -Cut up the card, put parts in different garbage
bags, and instruct the credit card company in writing or by phone to close
the account
-Garnishment - -Occurs when a creditor obtains a court order requiring an
employer to attach an employee's earnings in order to pay back a debt.
-rate of inflation - -determines the time value of depositing into a savings
account, and the interest rate and
-Rising interest - -Can lower stock prices because of lower business profits
Questions and Answers with correct
solutions.
Budget variance. - -the difference between the budgeted amount and the
actual amount that you spend
-debt ratio - -shows the relationship between debt and net worth.
-debt ratio - -The lower the ratio the better off financially the person is.
-debt ratio - -calculated by dividing liabilities by net worth
-excise tax - -government imposes a tax on specific goods and services
such as alcohol, cigarettes, gasoline, and airline
-capital gains - -are profits made from the sale of capital assets such as
stocks and bonds
-Capital gains - -tax deferred until the asset is sold,
-Capital Gains Tax - -If held over one year are considered long-term capital
gains and are taxed at a lower tax rate or in some cases are not taxed at all.
-variable expenses - -change from one period to another,examples
Electricity and food expenditures
-get advice from your friends - -will help you the least in managing your
money?
-Financial planning - -the process of developing and implementing a
coordinated series of actions to achieve financial success.
-Financial planning - -need to be reviewed and adjusted to accommodate
changing needs and goals.
-emergency fund - -Should be an important consideration when saving
money
-liquidity - -being in cash or easily convertible to cash, How easily an asset
can be converted into cash
, -Social Security - -benefits depends on the person?s earnings over a lifetime
of work
-Department store charge cards. - -open-end credit
-Department store charge cards. - -is a revolving live of credit that is
offered by banks There is a limit set on the line of credit and the funds
-mortgage loan - -closed-end credit,made at a specified interest rate for a
specified time period.
-collateralized loan. - -A loan that is secured by collateral, properties or
assets that are subject to seizure on default.
-collateralized loan. - -When a person brings an item to a pawnshop to
obtain cash, the transaction is considered
-Federal Housing Administration (FHA) loan - -insures lenders who make
mortgage loans that are riskier than regular bank loans because
-uncollateralized loan - -A personal loan without assets to cover the loan
amount.
-Collateral - -tangible asset that is used to secure a loan. In the case of a
mortgage, the actual house or apartment serves as the collateral for that
loan.
-bankruptcy - -will appear on the person?s credit report for 10 years
-Notify the credit card companies in order to negotiate a new payment plan.
- -Notify the credit card companies in order to negotiate a new payment
plan.
-Installment loan - -a loan repaid with interest in equal periodic payments
-dispose of a credit card - -Cut up the card, put parts in different garbage
bags, and instruct the credit card company in writing or by phone to close
the account
-Garnishment - -Occurs when a creditor obtains a court order requiring an
employer to attach an employee's earnings in order to pay back a debt.
-rate of inflation - -determines the time value of depositing into a savings
account, and the interest rate and
-Rising interest - -Can lower stock prices because of lower business profits
