Wise test Exam Questions With 100% Correct Answers 2024/2025
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Course
Wise
Institution
Wise
Wise test Exam Questions With 100% Correct Answers 2024/2025
An individual, who earns $36,000 a year, has total assets of $156,000 and liabilities of $85,000. The net worth of this individual is
$71,000
Net Worth = Assets - Liabilities
When considering purchasing renters insurance. a person...
Wise test Exam Questions With 100% Correct
Answers 2024/2025
An individual, who earns $36,000 a year, has total assets of $156,000 and liabilities of $85,000. The
net worth of this individual is
$71,000
Net Worth = Assets - Liabilities
When considering purchasing renters insurance. a person should know that the
purpose is to cover monetary losses related to fire, theft, and personal injury
(The purpose of all insurance is to cover monetary losses. Renters insurance protects against all things
that can happen to your rented property.
Premiums of all insurance is based off of how risky you are as a customer. The more claims you make,
the riskier you are. Income has nothing to do with it.
Landlord insurance will protect them from loss, it will do nothing for their renters. Also, landlords can
demand that you have insurance but they do not get a say in anything else about it. They do not get
to approve the policy, insurance company or coverage.)
The LOWEST interest rate loans generally:
are given to people who have high credit scores
Insurance is frequently described as a method of "sharing the risk"because the insured person shares
the risk with the
Other policy holders
When you get insurance you are sharing the possibility/risk with everyone else in your group. We all
pay for insurance though we don't all use it all the time. When we don't use it our money is put
towards those who need it.
By raising the deductible on car insurance coverage for collision from $200 to $400, the premium will
be
A lower amount
(deductible (the amount you have to pay before the insurance company will help you) and the
premium (the amount you pay each month to have insurance) have an INVERSE relationship. If one is
high the other is low. So raising my deductible will lower my premiums.)
A credit union is a...
a non-profit business that operates as a bank and is owned by its members.
All effective financial goals should...
Have a target date for achievement
Why are mutual funds considered a wise investment?
They diversify a person's portfolio among a number of stocks and bonds
(A mutual fund is a professionally managed investment that is made up of a pool of funds collected
from many investors and invested in stocks, bonds, money markets, and securities. Because mutual
funds are are diversified and professionally managed they are considered a wise or lower risk
investment.)
, Which of the following choices lists assets from MOST liquid to least liquid?
Savings account, certificate of deposit (CD), real estate
A benefit of using a debit card linked to a checking account without overdraft protection is that a
person can
Make purchases without going into debt
What happens to the interest rate during the life of a ten year bond that a person purchased paying
six percent interest?
The interest rate remains the same for the life of the bond
(Bonds are a FIXED RATE investments. Fixed, means it will stay the same.)
When a person increases his number of payroll exemptions, he will have
An increase in his net worth
(The higher your withholding number is, the less the government will take. )
A person, without checking account overdraft protection, writes a check for $152 when the checking
account balance is $125. The bank will generally take which of these actions.
Return the check because of insufficient funds and charge a fee.
(Without overdraft protection (allows you to take out more than is in your account) the bank will not
cash a check, allow the debit or atm transaction unless there is enough money to cover it. If you have
protection, then you may cash a check or make a debit or atm transaction and you will just pay a
penalty but you will be allowed.)
Which statement is true about a whole life insurance policy?
a. It accumulates cash value for the policy holderThis answer is correct.
b. The annual premium needs to be paid in full in one payment
c. The policy holder needs to own a home
d. It can only be bought by people under the age of 50
a. It accumulates cash value for the policy holder
( Remember to think of Life Insurance Policies as an "investment in your death" )
A form of payment that is guaranteed to be as good as cash is a
a. certificate of deposit (CD)
b. personal check
c. money order
d. Social Security card
Money order
A person's credit report shows a late payment made two years ago on a credit card. Which if these
statements is CORRECT?
a. If this information is accurate, it can stay on the person's credit report for up to 7 years.
b. Negative information will always remain on the person's credit report
c. The person can remove information that is more than one year old from his credit report.
d. For a fee, the credit reporting agency can remove the information from the person's credit report.
a. If this information is accurate, it can stay on the person's credit report for up to 7 years.
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