Exam (elaborations)
WISE FINANCIAL LITERACY TEST TERMS QUESTIONS AND ANSWERS
- Course
- Institution
WISE FINANCIAL LITERACY TEST TERMS QUESTIONS AND ANSWERS
[Show more]
Content preview
Name: Score:63 Multiple choice questions
Definition 1 of 63
the longer you take to pay back a loan, the more you will pay in interest and principal over all
interest rates and loan amount
length of debt repayment and impact on cost
investment options and stock market trends
credit score and loan approval time
Definition 2 of 63
if unauthorized charges are made with your credit card before you report it stolen or lost, the
maximum amount you can be reliable for is $50. If the charges are made after you report it,
there is no liability. If you don't report the card, you have full liability to pay back charges.
stolen credit card
credit reports
identity theft
credit card cash advances
Definition 3 of 63
financial market that experiences an prolonged period of contraction or loss.
liquidity
inflation
diversification
bear market
,Definition 4 of 63
collects taxes, prints money, issues treasury bonds.
treasury bills
treasury department
credit union
federal reserve
Definition 5 of 63
insurance policies transfers all or some of the financial impact of unexpected events. Insurance
exists to help people recover from the financial consequences of these events by pooling the
resources of a large group to pay for the losses of a small group.
equities
liquidity
diversification
insurance
Definition 6 of 63
wages, rentals, interest, capital, profits, investments, entrepreneurship
time value of money
discretionary income
sources of income
opportunity cost
,Definition 7 of 63
the state of no longer working
insurance
retirement
disability insurance
diversification
Definition 8 of 63
an instrument of indebtedness of the bond issuer to the holders. The most common types of
bonds include municipal bonds and corporate bonds; government bodies usually issue tax-
free municipal bonds to fund large capital expenses and improvements.
equities
bonds
mutual funds
dividends
Definition 9 of 63
member owned co-operative financial institution- advantage is lower interest rates on loans.
bonds
credit union
mutual funds
credit card
, Definition 10 of 63
Financial instruments such as stocks, bonds, and mutual funds that are traded on a stock
exchange.
mutual funds
insurance
diversification
securities
Definition 11 of 63
a payment order for a pre-specified amount of money and is purchased at a different types of
stores- it is used like a check. They are usually limited in maximum face value to some specified
figure. (For example, the United States Postal Service limits domestic postal money orders to
US $1,000.00); US Postal money orders are hard to counterfeit.
assets
money order
credit union
overdraft protection
Definition 12 of 63
feature of a qualified profit-sharing plan that allows employees to contribute a portion of their
wages to individual accounts. Elective salary deferrals are excluded from the employee's
taxable income (except for designated Roth deferrals). Employers can contribute to
employees' accounts.
roth plan
401k plan
defined benefit plan
403b plan
The benefits of buying summaries with Stuvia:
Guaranteed quality through customer reviews
Stuvia customers have reviewed more than 700,000 summaries. This how you know that you are buying the best documents.
Quick and easy check-out
You can quickly pay through credit card or Stuvia-credit for the summaries. There is no membership needed.
Focus on what matters
Your fellow students write the study notes themselves, which is why the documents are always reliable and up-to-date. This ensures you quickly get to the core!
Frequently asked questions
What do I get when I buy this document?
You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.
Satisfaction guarantee: how does it work?
Our satisfaction guarantee ensures that you always find a study document that suits you well. You fill out a form, and our customer service team takes care of the rest.
Who am I buying these notes from?
Stuvia is a marketplace, so you are not buying this document from us, but from seller selftest. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy these notes for $9.00. You're not tied to anything after your purchase.
Can Stuvia be trusted?
4.6 stars on Google & Trustpilot (+1000 reviews)
78637 documents were sold in the last 30 days
Founded in 2010, the go-to place to buy study notes for 14 years now