WISE Certification Study Guide-
Questions & Answers
Roy Williams has $1,000 to invest. He is thinking that interest rates or rates of return will
increase during the year. What should he buy? Correct Ans-He should buy a certificate of
deposit that is will mature either in 3 months, 6 months or a year.
When buying stock, what should you be aware of? Correct Ans-if the price of the stock will
go up or down.
Why would people be warned against taking payday loans? Correct Ans-People get trapped
into re-borrowing over and over again.
What should be included when writing a will? Correct Ans-Beneficiaries
What is a benefit of paying bills automatically from a bank account? Correct Ans-Bills are
paid on time
What is the purpose of renters insurance? Correct Ans-Protect property
As it relates to a budget, what is a surplus? Correct Ans-Money that is left over once all
expenses are budgeted.
, How can a person build wealth for the future? Correct Ans-Put money into savings and
invest money
T/F....There is typically a fee for stop payments on checks. Correct Ans-True
When looking at a credit report, how do you calculate what a person owes? Correct Ans-
Looking at a credit report and giving what a person owes by adding the current balance on each
card.
This protects a person's bank accounts up to $250,000. Correct Ans-FDIC
T/F...The type of car a person owns could determine the cost of auto insurance. Correct Ans-
True
When is it usually a good time to borrow? Correct Ans-When a person is looking to buy
something like a house because it could increase in value over time.
Bear market Correct Ans-Extended period of uncertainty and pessimism when stock prices
fall.
Bull market Correct Ans-Extended period of consumer confidence and optimism when stock
prices rise.
Questions & Answers
Roy Williams has $1,000 to invest. He is thinking that interest rates or rates of return will
increase during the year. What should he buy? Correct Ans-He should buy a certificate of
deposit that is will mature either in 3 months, 6 months or a year.
When buying stock, what should you be aware of? Correct Ans-if the price of the stock will
go up or down.
Why would people be warned against taking payday loans? Correct Ans-People get trapped
into re-borrowing over and over again.
What should be included when writing a will? Correct Ans-Beneficiaries
What is a benefit of paying bills automatically from a bank account? Correct Ans-Bills are
paid on time
What is the purpose of renters insurance? Correct Ans-Protect property
As it relates to a budget, what is a surplus? Correct Ans-Money that is left over once all
expenses are budgeted.
, How can a person build wealth for the future? Correct Ans-Put money into savings and
invest money
T/F....There is typically a fee for stop payments on checks. Correct Ans-True
When looking at a credit report, how do you calculate what a person owes? Correct Ans-
Looking at a credit report and giving what a person owes by adding the current balance on each
card.
This protects a person's bank accounts up to $250,000. Correct Ans-FDIC
T/F...The type of car a person owns could determine the cost of auto insurance. Correct Ans-
True
When is it usually a good time to borrow? Correct Ans-When a person is looking to buy
something like a house because it could increase in value over time.
Bear market Correct Ans-Extended period of uncertainty and pessimism when stock prices
fall.
Bull market Correct Ans-Extended period of consumer confidence and optimism when stock
prices rise.
