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WISE Test Exam 2024/2025 Questions With Completed & Verified Solutions.
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WISE Test Exam 2024/2025 Questions With Completed & Verified Solutions.
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WISE TestIn order to get spending under control, a person should first - ANS Create a budget of current
income and expenses
Comparison shopping for a car is necessary because - ANS The price for the car can vary a
great deal
Financial planners generally stress the importance of starting to save and invest early because -
ANS Of the power of compounding and appreciation
An important feature of a good financial goal is that the goal - ANS Has a specific time frame
Purchasing power decreases and it costs more money to buy goods when there is - ANS
Inflation
What strategy can help a person achieve her goal to buy a house? - ANS Following a budget
that allows for savings
A college student has to live on a tight budget. Before making a decision to buy the newest cell
phone, which question should he ask himself first? - ANS Is the new cell phone a need or want?
Which of the following quotes is sound financial advice? - ANS "A penny saved is a penny
earned."
Fixed expenses include - ANS Rent
Mandatory deductions from a person's paycheck include - ANS Federal withholding tax and
FICA
When should a person begin contributing to a retirement plan? - ANS As young as possible
Which of the following is the source of income for most people aged 20-35? - ANS
Wages/salary
The U.S. government agency responsible for the collection and enforcement of federal taxes is
known as - ANS U.S. Internal Revenue Service (IRS)
When a person has a balanced budget that includes savings then - ANS Total expenses +
savings = total income
, Why do financial advisors recommend that a person save at least 10% of each paycheck? -
ANS To build wealth
The "time value of money" means that - ANS Money received today is worth more than the
same amount of money received in the future
When a person receives a book store gift card, she can use it to - ANS Buy a book from that
store
A person who dies will have his assets distributed as he wanted as long as he has - ANS A will
A person has assets worth $15,000 and loans totaling $5,000. Her net worth is - ANS $10,000
Don and Bill work together in the finance department of the same company and earn the same
salary. Bill spends his free time taking work-related classes to improve his computer skills. Don
spends his free time socializing with friends or watching TV. After five years, what is most likely
to
be true? - ANS Bill will likely make more money because he is more valuable to his company
Which of the following is an example of a long-term debt? - ANS A student loan
A person earned a salary of $70,000 last year. Additionally, he had $1,000 in interest income
and
$2,000 in dividend income. His total income for this year is - ANS $73,000
An example of an opportunity cost is - ANS Buying concert tickets instead of buying a textbook
for a course
A person strongly feels that going into debt is wrong. This is an example of the influence of -
ANS Values on decisions
Which of the following describes what happens during a depression? - ANS Unemployment is
extremely high
When the amount of income on a budget is greater than the amount actually spent on
expenses,
the person has a - ANS Surplus
When interest is computed once on a dollar amount (the principal), it is - ANS Simple interest
A person decided to have six months of income in an emergency savings account. Is this a
good
decision? - ANS Yes, because the money in the emergency account can be used if he loses his
job
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