Wise Test Latest 2024 with Complete Solution
A person pawns his watch and receives $100 from the pawnshop. A month, later the person pays $120 to get his watch back. The additional $20 paid is considered.
a. A dividend
b. A fine
c. A premium
d. Interest on the loan - Answer- d. Interest on t...
Wise Test Latest 2024 with
Complete Solution
A person pawns his watch and receives $100 from the pawnshop. A month, later the
person pays $120 to get his watch back. The additional $20 paid is considered.
a. A dividend
b. A fine
c. A premium
d. Interest on the loan - Answer- d. Interest on the loan
What is the advantage of investing in stocks over a twenty year period?
a. After twenty years, stocks are protected against loss in value by the Federal Reserve
Bank (FED)
b. Over a long time, money invested in stock is insured by the Federal Deposit
Insurance Corportation (FDIC) unlike money in savings
c. The longer the investor owns a stock, the lower the investment risk.
d. When stocks are held for a long time, the money invested generally makes more than
money in a savings account earning interest. - Answer- d. When stocks are held for a
long time, the money invested generally makes more than money in a savings account
earning interest.
A person with homeowner's insurance had electronic equipment currently worth $2,000
stolen from her apartment. The insurance company approved her $2,000 claim and paid
her $1,500. The most likely reason for the insurance company's paying her less than the
$2,000 claim is that her insurance policy had a $500
a. Deductible
b. Finance charge
c. Co-insurance clause
d. Premium - Answer- a. Deductible
Buying insurance is a way to
a. Avoid losses associated with an investment in stocks
b. Postpone income tax payments until retirement
c. Protect one's purchasing power
d. Protect against the risks associated with potential losses - Answer- d. Protect against
the risks associated with potential losses
When a credit card company increases a person's line of credit, it may
a. Help the person pay his outstanding debt on that credit card
b. Discourage the person from using that credit card to make a small purchase
, c. Prevent the person from paying more than the monthly minimum balance due on the
credit card
d. Encourage the person to use that credit card to buy more than he can afford -
Answer- d. Encourage the person to use that credit card to buy more than he can afford
(A line of credit is another way of saying: how much you are allowed to spend. if you
increase a line of credit, you are allowing that customer to spend more than previously
allowed.)
What is an advantage for a person to have his paycheck deposited directly into his bank
account?
a. check cashing stores only cash personal checks not paychecks
b. paycheck funds will only be spent on budgeted items
c. paycheck funds are available faster than if the person brings the paycheck to the
bank
d. taxes deducted from gross pay are lower if the paycheck is sent directly to the bank -
Answer- c. paycheck funds are available faster than if the person brings the paycheck to
the bank
One ADVANTAGE of giving someone a gift card is that the person
a. has to pay to renew the card each year.
b. may forget to use the card often, resulting in a monthly inactivity fee after 12 months
c. is not required to make purchases for the exact value that is on the card.
d. has to pay a fee when using the card - Answer- c. is not required to make purchases
for the exact value that is on the card.
A person has a 10 year term life insurance policy. The policy will pay
a. the death benefit if the insured dies within the ten years.
b. the death benefit if the insured dies after the ten year term
c. A cash value of $250,000 at the end of ten years.
d. A cash value equal to the premiums paid over the ten years. - Answer- a. the death
benefit if the insured dies within the ten years.
Financial planning allows individuals to
a. develop strategies for savings and investing
b. guarantee income for retirement
c. avoid credit scams and identity theft
d. eliminate risk on investment - Answer- a. develop strategies for savings and investing
A person should have an emergency savings account with deposits of at LEAST
a. 6 months of living expenses
b. 18 months of living expenses
c. double the amount of the person's annual salary
d. single the amount of the person's annual salary - Answer- a. 6 months of living
expenses
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