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WISE (Finance Economics) EXAM TEST QUESTIONS AND ANSWERS
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WISE (Finance Economics) EXAM TEST QUESTIONS AND ANSWERS
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WISE (Finance Economics) EXAM TESTQUESTIONS AND ANSWERS
What is the largest equities market in the world?
Correct Answer -New York Stock Exchange (NYSE)
A pharmacy is to drugs as the American Stock Exchange is to:
Correct Answer -Securities
Using a brokerage firm, a qualified investor buys 1000 shares of a common
stock at $50 a share on 50% margin. This means that the
Correct Answer -brokerage firm is lending the investor 50% of the money.
An investor bought 40 shares of ABC corporation's stock at $80 a share. Two
weeks later, the investor receives notice that the corporation has approved
a 2-for-1 stock split. Based on this information, the investor would own at
the moment of the split
Correct Answer -80 shares of the stock and the price of each share is $40.
To determine the time value of depositing $100 in a savings account, a
person needs to know the interest rate and
Correct Answer -the rate of inflation.
The "Rule of 72" is an easy way to:
Correct Answer -Calculate how fast your savings will double in value at given
interest rates
, The information that a lender must disclose to consumers applying for a
cash loan is:
Correct Answer -The annual percentage rate (APR), and/or the finance
charge
Interest earned on interest is known as:
Correct Answer -Compounded interest
If a person has $1,000 in a savings account and earns $20 a year in interest
on that account, the rate of return on the money is close to
Correct Answer -2%.
For the past five years, a person has had a $20,000 whole life insurance
policy that has a cash value clause. The person decides to surrender the
policy. At the time of surrender, the person will receive
Correct Answer -a calculated amount of money which includes the
premiums paid as well as the interest on that money.
A woman has just received a very expensive piece of jewelry. The woman
has homeowner's insurance. Which statement would it be most appropriate
for her to make to her insurance agent?
Correct Answer -"I think I need a personal property floater."
A person buys a flat screen, plasma, theater-like television. The person has
homeowner?s insurance. Why would it be appropriate to add a personal
property floater to that insurance?
Correct Answer -To cover the cost of replacement should the television get
damaged or stolen.
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