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WISE Test __ Questions/Answers
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WISE Test __ Questions/Answers
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WISE Test __ Questions/AnswersOne of Andre's seldom-used credit cards has been stolen without his
knowledge. When he gets his monthly statement, he realizes that someone
else has been using the card and reports it stolen. The maximum amount of
unauthorized purchases he is liable for is: ✔️Ans - $50
Consumers who file for bankruptcy are still responsible for: ✔️Ans - Tax
claims and student loans
Which of the following provides an increase in assets or wealth? ✔️Ans -
Having capital gains
The denominations of coins in the United States are: ✔️Ans - $.01, $.05,
$.10, $.25, $.50, $1.00
Mutual funds are: ✔️Ans - An investment that holds a wide range of
different investment instruments, providing diversification
Michele and Claudia have a seven year old son. They won $50,000 on a TV
games show and want to put it away for their son's education. Which of the
following has the highest potential growth and the highest risk? ✔️Ans -
Common Stock
Banks use savings account deposits to: ✔️Ans - Give loans to consumers
and businesses
You have a checking account balance of $100 and you deposit a personal $200
check from your brother in you checking account. When will you be able to
withdraw $150 in cash? ✔️Ans - 3 to 7 days later, depending on your
bank's check clearance policy
Why is term life insurance usually the least expensive type of life insurance?
✔️Ans - The policy only pays a death benefit
, Neil will be traveling by air in Southeast Asia for six-week vacation. Which
step will not provide protection during the trip? ✔️Ans - Take his
passport
Victims of predatory lending practices are typically: ✔️Ans - The elderly
and people with a poor credit history
How can you avoid becoming a victim of identity theft? ✔️Ans - Avoid
giving your Social Security number on a phone call you did not initate
Which of the following statements is usually true about indivuals who are
financially literate? ✔️Ans - They understand the basics of personal
finance and money management
Which of the following is a disadvantage of using phone cards, debit cards,
electronic transfers, and ATM cards? ✔️Ans - They expose consumers to
greater likelihood of identity theft
The price of the Candy Corporation Stock will generally increase when there
is: ✔️Ans - Positive news about corporate earnings
The process of setting aside money and putting it to work by having it earn
intrest or dividends or gain value in the equities market with the idea of
having additional funds to use in the future is described as: ✔️Ans -
Savings and Investing
The most liquid type of investment is: ✔️Ans - A money market account
Joan wants to open a checking account and wonders if checking accounts pay
interest. How would you answer her question? ✔️Ans - Some types of
checking accounts pay interest
The purpose of Insurance is NOT to: ✔️Ans - Diversify an investment
portfolio
Generally, the higher the deductible on an insurance policy, the ✔️Ans -
Lower the premium
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