WISE Practice Test Bank 2023 with all the correct answers;100% verified
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WISE
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WISE
WISE Practice Test Bank 2023 with all the correct answers;100% verified
To qualify for a Federal Housing Administration (FHA) loan, a person must generally ....
A: have at least a high school diploma.
B: have one-quarter of the cost of the home
for a down-payment.
C: fulfill income guideli...
wise practice test bank 2023 with all the correct answers100 verified to qualify for a federal housing administration fha loan
a person must generally a have at least a high school diplom
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WISE Practice Test Bank 2023 with all the correct
answers;100% verified
To qualify for a Federal Housing Administration (FHA) loan, a person must
generally ....
A: have at least a high school diploma.
B: have one-quarter of the cost of the home
for a down-payment.
C: fulfill income guidelines.
D: provide two individuals to co-sign the loan.
C: fulfill income guidelines.
A high school student has begun to investigate the field of finance as a career
choice. In deciding about the field, the student should focus on which question
first?
A: Will I find a balance between financial rewards and personal satisfaction from
work?
B: How many people do I know who work in this field?
C: Once I train for this area, how long before I will be
at the top of the field?
D: Are there people in this field who are dissatisfied
with their jobs?
A: Will I find a balance between financial rewards and personal satisfaction from work?
A type of electronic funds transfer (EFT) is:
A: A transaction made with a check
B: A deposit made with a bank teller
C: Not widely used by consumers
D: An ATM transaction
D: An ATM transaction
A company offers a defined-contribution pension plan which means that upon
retirement the employee will receive
A: one-half of the employee's last year's salary.
B: the total amount of money contributed plus investment
earnings.
C: an amount of money based only on the length of time
the employee worked for the company.
D: a specified amount of money based totally on the profit
earned by the company while the employee worked
there.
B: the total amount of money contributed plus investment earnings.
The interest earned on United States Series EE Savings Bonds is
,A: exempt from state and local taxes.
B: paid in a lump sum at the time the face value on the bond is reached.
C: equal to the money paid to purchase it.
A: exempt from state and local taxes.
Buying a treasury bill (T-bill) is best for investors who are looking for
A: a place to invest between $100-$500.
B: a secure, low risk investment.
C: a higher yield on their investment than corporate bonds offer.
D: an investment that matures in 10-30 years.
B: a secure, low, risk investment.
Using a brokerage firm, a qualified investor buys 1000 shares of a common stock
at $50 a share on 50% margin. This means that the
A: investor will pay only $5000 for the shares.
B: investor is buying 2000 shares.
C: brokerage firm is lending the investor 50% of the money.
D: brokerage firm will own 50% of the 1000 shares of stock that were purchased.
C: brokerage firm is lending the investor 50% of the money.
To determine the time value of depositing $100 in a savings account, a person
needs to know the interest rate and
A: her total income.
B: the rate of inflation.
C: whether the account is FDIC protected.
D: whether the bank offers overdraft protection.
B: the rate of inflation.
The amount a lender charges to borrow money is called the:
A: Principal
B: Annual Percentage Rate (APR)
C: Loan balance
D: Finance charge
D: Finance charge
The cost to use someone else's money for a period of time is called the:
A: Interest rate expressed as a percentage
B: Opportunity cost
C: Minimum payment
D: Inflation rate
A: Interest rate expressed as a percentage
Interest earned on interest is known as:
A: Simple interest
B: True interest
, C: Compounded interest
D: Variable interest
C: Compounded interest
Money received today is worth more than the same amount of money received
sometime in the future is:
A: The Rule of 72
B: The time value of money
C: Not true
D: Investing
B: The time value of money
A person buys a flat screen, plasma, theater-like television. The person has
homeowner's insurance. Why would it be appropriate to add a personal property
floater to that insurance?
A: To reduce the premium on the homeowner's insurance.
B: To protect the person who owns the television from
liability for damages.
C: To show the insurance company a good faith investment
has been made.
D: To cover the cost of replacement should the television
get damaged or stolen.
D: To cover the cost of replacement should the television get damaged or stolen.
For the past five years, a person has had a $20,000 whole life insurance policy
that has a cash value clause. The person decides to surrender the policy. At the
time of surrender, the person will receive
A: one-fifth of the $20,000 face value.
B: $20,000 less the premiums paid.
C: a calculated amount of money which includes the
premiums paid as well as the interest on that money.
D: a calculated amount of money that must be converted to
a term life insurance policy.
C: a calculated amount of money which includes the premiums paid as well as the
interest on that money.
If a person makes a deposit of $10,000 or more into a bank account, the bank
must notify the
A: US Treasury Department.
B: Federal Deposit Insurance Corporation. (FDIC).
C: State Banking Commission.
D: Federal Reserve Board.
A: US Treasury Department.
Employees prefer direct deposits because:
A: There is a small fee for the service
B: The danger of losing a paycheck is slightly reduced
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