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WISE TEST questions with 100% correct answers
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WISE TEST questions with 100% correct answers
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WISE TESTIn order to get spending under control, a person should first
A. seek help on investing from a financial planner.
B. consult a credit counseling service.
C. create a budget of current income and expenses.
D. subscribe to financial newsletters and magazines. - correct answer ✔✔C
Comparison shopping for a car is necessary because
A. each dealer sells cars with different colors.
B. lenders want to be sure consumers get the best price.
C. the price for the car can vary a great deal.
D. it is a requirement to qualify for car insurance. - correct answer ✔✔C
Financial planners generally stress the importance of starting to save and invest early because
A. a person can stop saving at age 40.
B. of the power of compounding and appreciation.
C. there are fewer bills to pay when a person is young.
D. a person will not need insurance. - correct answer ✔✔B
An important feature of a good financial goal is that the goal
A. has a specific time frame.
B. is appropriate for the person's age.
C. can last throughout the person's life.
D. will take at least ten years for the person to achieve. - correct answer ✔✔A
Purchasing power decreases and it costs more money to buy goods when there is
,A. a bear market.
B. inflation.
C. deflation.
D. a bull market. - correct answer ✔✔B
What strategy can help a person achieve her goal to buy a house?
A. Using credit cards to pay for expenses.
B. Paying for large purchases in cash.
C. Following a budget that allows for savings.
D. Applying for more credit cards to increase her credit score. - correct answer ✔✔C
A college student has to live on a tight budget. Before making a decision to buy the newest cell
phone, which question should he ask himself first?
A. Is the new cell phone cheaper than the one being used?
B. Is the new cell phone on sale?
C. Is the new cell phone a need or a want?
D. Will my friends like the new cell phone? - correct answer ✔✔C
Which of the following quotes is sound financial advice?
A. "He who hesitates is lost."
B. "A penny saved is a penny earned."
C. "Don't put off today what can be done tomorrow."
D. "The window of opportunity may only open once." - correct answer ✔✔B
Fixed expenses include
A. food.
B. vacations.
C. entertainment.
D. rent. - correct answer ✔✔D
, Mandatory deductions from a person's paycheck include
A. federal withholding tax and FICA.
B. school taxes and contributions to a retirement account.
C. regressive taxes and employee automatic savings.
D. property taxes and employee benefits. - correct answer ✔✔A
When should a person begin contributing to a retirement plan?
A. Before deciding to start a family.
B. As young as possible.
C. At age 50.
D. Upon collecting Social Security. - correct answer ✔✔B
Which of the following is the source of income for most people aged 20-35?
A. Dividends.
B. Wages/salary.
C. Rent.
D. Mortgage payments. - correct answer ✔✔B
The U.S. government agency responsible for the collection and enforcement of federal taxes is
known as
A. Federal Reserve System (Fed).
B. Securities and Exchange Commission (SEC).
C. U.S. Internal Revenue Service (IRS).
D. Consumer Financial Protection Bureau (CFPB). - correct answer ✔✔C
When a person has a balanced budget that includes savings then
A. net income = discretionary income.
B. total expenses = savings.
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