Wise Practice Test
budget variance. - correct answer ✔the difference between the budgeted
amount and the actual amount that you spend
debt ratio - correct answer ✔shows the relationship between debt and net
worth.
debt ratio - correct answer ✔The lower the ratio the better off financially the
person is.
debt ratio - correct answer ✔calculated by dividing liabilities by net worth
excise tax - correct answer ✔government imposes a tax on specific goods
and services such as alcohol, cigarettes, gasoline, and airline
capital gains - correct answer ✔are profits made from the sale of capital
assets such as stocks and bonds
Capital gains - correct answer ✔tax deferred until the asset is sold,
Capital Gains Tax - correct answer ✔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 - correct answer ✔change from one period to
another,examples Electricity and food expenditures
, get advice from your friends - correct answer ✔will help you the least in
managing your money?
Financial planning - correct answer ✔the process of developing and
implementing a coordinated series of actions to achieve financial success.
Financial planning - correct answer ✔need to be reviewed and adjusted to
accommodate changing needs and goals.
emergency fund - correct answer ✔Should be an important consideration
when saving money
liquidity - correct answer ✔being in cash or easily convertible to cash, How
easily an asset can be converted into cash
Social Security - correct answer ✔benefits depends on the person?s
earnings over a lifetime of work
Department store charge cards. - correct answer ✔open-end credit
Department store charge cards. - correct answer ✔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 - correct answer ✔closed-end credit,made at a specified
interest rate for a specified time period.
collateralized loan. - correct answer ✔A loan that is secured by collateral,
properties or assets that are subject to seizure on default.
budget variance. - correct answer ✔the difference between the budgeted
amount and the actual amount that you spend
debt ratio - correct answer ✔shows the relationship between debt and net
worth.
debt ratio - correct answer ✔The lower the ratio the better off financially the
person is.
debt ratio - correct answer ✔calculated by dividing liabilities by net worth
excise tax - correct answer ✔government imposes a tax on specific goods
and services such as alcohol, cigarettes, gasoline, and airline
capital gains - correct answer ✔are profits made from the sale of capital
assets such as stocks and bonds
Capital gains - correct answer ✔tax deferred until the asset is sold,
Capital Gains Tax - correct answer ✔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 - correct answer ✔change from one period to
another,examples Electricity and food expenditures
, get advice from your friends - correct answer ✔will help you the least in
managing your money?
Financial planning - correct answer ✔the process of developing and
implementing a coordinated series of actions to achieve financial success.
Financial planning - correct answer ✔need to be reviewed and adjusted to
accommodate changing needs and goals.
emergency fund - correct answer ✔Should be an important consideration
when saving money
liquidity - correct answer ✔being in cash or easily convertible to cash, How
easily an asset can be converted into cash
Social Security - correct answer ✔benefits depends on the person?s
earnings over a lifetime of work
Department store charge cards. - correct answer ✔open-end credit
Department store charge cards. - correct answer ✔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 - correct answer ✔closed-end credit,made at a specified
interest rate for a specified time period.
collateralized loan. - correct answer ✔A loan that is secured by collateral,
properties or assets that are subject to seizure on default.
