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WISE Test personal finance 2024 Updated Questions and Answers (2024/2025) (Verified Answers)
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WISE Test personal finance 2024 Updated Questions and Answers (2024/2025) (Verified Answers)
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Wise test personal finance.pdf file:///C:/Users/HP/Desktop/New%20folder%20(4)/Wise%20test%20pWise Test Personal Finance
Questions & Answers Verified
1. If a person makes a deposit of $10,000 or more into a bank account, the bank
must notify the
Answer US Treasury Department. (In order to track large deposits, the federal
government requires that deposits of $10,000 or more be reported to the Treasury
Department. Some concerns may be that a person might be trying to avoid paying taxes
on game winnings or perhaps illegal gains)
2. Travelers checks, often used for vacations
Answer Function as cash and are easily replaced if lost (Traveler's checks are
documents that function as cash, can be replaced if lost or stolen, and are generally
accepted throughout the world. For these reasons, they are often used on vacations
and other trips. The purchaser signs a traveler's check immediately after purchasing
it and again when paying for a purchase with it.)
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3. Joan wants to open a checking account and wonders if checking accounts pay
interest. How would you answer her question?
Answer Some types of checking accounts pay interest (Regular checking accounts do
not earn interest. NOW (ne- gotiable order of withdrawal) accounts do earn interest
but tend to have higher minimum balance requirements than regular checking
accounts and often limit the number of checks that can be written each month
without a fee.)
4. Which financial product may pay a dividend?
Answer Common stock (All of these types of accounts and financial products except
for common stock earn interest. Some companies declare and pay dividends to their
common stock shareholders.)
5. A bank Certificate of Deposit is a
Answer Savings instrument that requires a deposit for a period of time during which
there is a penalty for withdrawals (A certificate of deposit (CD) is a savings instrument
that requires a deposit for a period of time (term) during which the saver cannot
withdraw money from the plan without a penalty. CDs are issued with terms from 31
days up to eight years. The longer the consumer agrees to loan the money to the bank
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or credit union, generally the higher the interest rate. It is considered a form of savings
because the consumer is paid interest based on the dollar amount and term of the CD.
If the consumer does not collect his/her money at the end of the term, the money
may be rolled over into another CD.)
6. When a person brings an item to a pawnshop to obtain cash, the transaction is
considered
Answer a collateralized loan (Since pawnshops make loans based on deter- mining the
value of collateral (a tangible object such as jewelry, cameras, musical instruments)
they receive, the loan is considered a collateralized loan.)
7. When a person declares bankruptcy that fact will appear on the person?s
credit report
Answer for a 10 year period.(Most of the adverse information on a credit report
appears for 7 years. After a declared bankruptcy, the limit is 10 years.)
8. Which of the following is considered to be open-end credit?
Answer Department store charge cards. (Open-end credit is a revolving live of credit
that is offered by banks and other lenders to consumers. There is a limit set on the
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