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Personal Finance WISE Test questions correctly answered
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Personal Finance WISE Test questions correctly answered
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Personal Finance WISE TestInflation - correct answer ✔✔the rise in the level of prices for goods and services
Time Value of Money - correct answer ✔✔the increase of an amount of money due to earned interest or
dividends
Balance Sheet - correct answer ✔✔statement that identifies the items you own, what you owe, and your
net worth
Paying Yourself First - correct answer ✔✔the concept of setting aside a portion of your income for
savings before spending any of it
Commission - correct answer ✔✔a fee charged by a brokerage firm or investment bank to buy or sell
securities of an investor
Potential Earning Power - correct answer ✔✔the amount of money you may earn over time
Finance Charge - correct answer ✔✔the total dollar amount of interest you pay to use credit
Compounding - correct answer ✔✔the process of earning interest on both the principal and any prior
interest earned in your account
Medicare - correct answer ✔✔is a government sponsored health care coverage for the elderly
Credit Limit - correct answer ✔✔The maximum dollar amount of money the creditor will make available
to you on your credit card
Medicaid - correct answer ✔✔is a government sponsored health care plan for people with low income
, Grace Period - correct answer ✔✔the amount of time a credit card company provides before you incur
finance charges
Liquidity - correct answer ✔✔the ability to easily convert your financial resources into cash without loss
of value
Annual Percentage Yield - correct answer ✔✔term for the amount of interest that a $100 deposit would
earn after compounding for one year (as defined by law)
401(k) - correct answer ✔✔sets aside a portion of your pay, plus (usually) an employer match.
Economics - correct answer ✔✔The study of the decisions that go into making, distributing and using
goods and services.
Dealer Invoice Price - correct answer ✔✔Price the car dealer paid to purchase the car from the
manufacturer.
Opportunity Cost - correct answer ✔✔A trade-off or what you are giving up when you make one choice
over another.
Diversification - correct answer ✔✔A strategy of investing in a broad range and number of companies in
order to limit the potential investment risk.
Deductible - correct answer ✔✔Is the amount of loss you pay out-of-pocket before the insurance
company pays their portion.
Networking - correct answer ✔✔A way of making and using contacts to get job information and advice.
Standard of Living - correct answer ✔✔The measure of quality of life based on the amounts and kinds of
goods and services a person can buy.
Pension - correct answer ✔✔A retirement plan that is funded, at least in part, by an employer.
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