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WISE (Finance Economics) FREQUENTLY TESTED QUESTIONS AND ANSWERS.
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WISE (Finance Economics) FREQUENTLY TESTED QUESTIONS AND ANSWERS.
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WISE (Finance Economics) FREQUENTLYTESTED QUESTIONS AND ANSWERS.
1. When using a debit card what should you immediately do upon use?
Correct Answer -Record it in your checkbook register
2. Why buy renter's insurance?
Correct Answer -To protect your belongings in case of fire or theft
3. Why do you pay a lower rate on a car loan verses a personal loan?
Correct Answer -The car is collateral for the loan
4. Why do corporations issue bonds?
Correct Answer -To borrow money from investors
5. Why are payday loans the worst choice?
Correct Answer -These loans often result in a pattern of needing to
continue borrowing and usually come with the highest interest rate
6. How does the Federal Reserve System (FED) protect depositors & banks?
Correct Answer -Regulates the number of branches a member bank can
have
7. What would typically happen to a publicly traded company's stock if
they lost a major lawsuit?
Correct Answer -Stock prices would decrease
8. If you have multiple credit cards, how much shows on your credit report
that you owe?
,Correct Answer -The total amount owed on all credit cards at the time that
the report is run
9. If your credit card bill was more than you budgeted, as a financially
literate person, what should you pay?
Correct Answer -Pay the bill and full if possible and reduce the budget
somewhere else
10. Why would the purchasing power of money decrease?
Correct Answer -inflation
11. You generally pay $150 a month on groceries. This year the inflation
rate is 10%. What will happen to the amount of groceries and the price
you pay for groceries?
Correct Answer -Groceries stay the same but the price goes up
12. If you haven't used your gift card you received months ago, and when
you use it for the first time the value has decreased. Why would this
happen?
Correct Answer -There was a fee attached to the card for non use
13. What should always be included in a will?
Correct Answer -beneficiaries
14. Besides raising revenue, why would the government tax tobacco?
Correct Answer -To encourage people to stop using
15. Why would someone use a non-bank consumer finance company?
Correct Answer -They can't get financing elsewhere
,16. If you have a fire in your home, and there is damage, the repair costs
would most likely come from where?
Correct Answer -Homeowner's insurance
17. If you have bank that compounds savings at 2% quarterly and
another that compounds savings 2% monthly, which is better?
Correct Answer -monthly
18. If you find an error in your credit report, what should you do?
Correct Answer -Contact the credit reporting agency immediately
19. How can you increase wealth through real estate?
Correct Answer -Buy real estate and sell at a profit
20. What is the US Treasury Dept. responsible for?
Correct Answer -One job is to print money through the US Mint
21. Why should you have health insurance?
Correct Answer -To help pay for high medical bills
22. Bankruptcy erases all debts except?
Correct Answer -Income taxes and child support payments
23. If making a donation, what money should you use?
Correct Answer -Money left after paying all other budgeted expenses
24. What is the most important question to ask when comparing credit
cards?
Correct Answer -What is the APR
, 25. Why would you buy insurance for a cell phone?
Correct Answer -In case it's lost or stolen
26. Which of the following are not a mandatory payroll deduction?
a. State Income tax
b. FICA
c. State Unemployment/Disability Insurance
d. 401K contribution
Correct Answer -d. 401k contribution
27. What happens to a person's security deposit when he/she moves out
of a rental?
Correct Answer -Returned plus interest and minus damages
28. What does it mean if your line of credit has been increased?
Correct Answer -Card owner can charge up to the new credit limit
29. Why is true that a person investing in a 401K at 2% of a $35.000
salary starting at age 25 will have more money available then a person
who starts at age 50 by contributing 5% of a $50,000 salary?
Correct Answer -They have more time for the money to be compounded
30. What is a benefit of using a debit card?
Correct Answer -Reduces the amount of cash carried
31. If you go to the doctor and you have a $25 co-pay, what does that
mean?
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