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WISE (Finance Economics) MULTIPLE CHOICE TEST QUESTIONS AND ANSWERS.
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WISE (Finance Economics) MULTIPLE CHOICE TEST QUESTIONS AND ANSWERS.
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WISE (Finance Economics) MULTIPLECHOICE TEST QUESTIONS AND ANSWERS.
Two types of life insurance policies are
A. general and fixed-rate.
B. valuable and indemnified.
C. term and whole life (permanent).
D. annual and tax exempt.
Verified Answer -C
When shopping for life insurance, the best strategy is to
A. do what the insurance salesperson recommends, since he is an expert.
B. buy coverage at work if possible.
C. figure out how much is needed, then get prices from different companies.
D. buy insurance coverage after age 40 so the risk will be lower.
Verified Answer -C
The purpose of life insurance is to
A. pay a person's outstanding credit card bills.
B. provide investment income to pay expenses during retirement.
C. help meet the financial needs of dependents upon a person's death.
D. protect against financial loss during a person's lifetime.
Verified Answer -C
,Which of the following financial products has the highest risk?
A. Checking accounts.
B. Certificates of deposit (CDs).
C. Stocks.
D. Savings accounts.
Verified Answer -C
One reason investors purchase stock is to
A. increase wealth.
B. borrow money.
C. earn interest.
D. balance a budget.
Verified Answer -A
Before a person begins investing, he should have
A. taken more than one business course.
B. a meeting with a licensed financial planner/advisor.
C. a minimum of $5,000 to invest.
D. strong self confidence in his ability to make money.
Verified Answer -B
The New York Stock Exchange (NYSE) can be described as a
A. marketplace where stocks are bought and sold.
,B. market for trading bonds.
C. place to barter goods and services.
D. location where government officials meet.
Verified Answer -A
A person wants to invest in a low-risk investment product. Which of the following
would be the
best investment for her?
A. US Treasury bond.
B. Mutual fund.
C. Common stock.
D. Speculative stock.
Verified Answer -A
The stock price of a corporation is most likely to increase when the corporation
announces a
A. decrease in the expected profit for this year.
B. budget deficit.
C. new product being released for sale.
D. serious problem with its product.
Verified Answer -C
A method of reducing investment risk is known as
A. speculation.
, B. diversification.
C. consolidation.
D. negotiation.
Verified Answer -B
Profit from the sale of stocks, bonds, or real estate is called
A. equity capital.
B. gift income.
C. capital gains.
D. tax-free income.
Verified Answer -C
A company that sells shares of ownership through a stock exchange to investors is a
A. sole proprietorship.
B. public corporation.
C. securities exchange.
D. private corporation.
Verified Answer -D
When should a person begin contributing to a retirement plan?
A. Before deciding to start a family.
B. As young as possible.
C. At age 50.
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