Wise Practice Test Q&A
budget variance. - the difference between the budgeted amount and the
actual amount that you spend
debt ratio - shows the relationship between debt and net worth.
debt ratio - The lower the ratio the better off financially the person is.
debt ratio - calculated by dividing liabilities by net worth
excise tax - government imposes a tax on specific goods and services such
as alcohol, cigarettes, gasoline, and airline
capital gains - are profits made from the sale of capital assets such as
stocks and bonds
Capital gains - tax deferred until the asset is sold,
Capital Gains Tax - If held over one year are considered long-term capital
gains and are taxed at a lower tax rate or in some cases are not taxed at all.
variable expenses - change from one period to another,examples Electricity
and food expenditures
get advice from your friends - will help you the least in managing your
money?
Financial planning - the process of developing and implementing a
coordinated series of actions to achieve financial success.
Financial planning - need to be reviewed and adjusted to accommodate
changing needs and goals.
emergency fund - Should be an important consideration when saving
money
, liquidity - being in cash or easily convertible to cash, How easily an asset
can be converted into cash
Social Security - benefits depends on the person?s earnings over a lifetime
of work
Department store charge cards. - open-end credit
Department store charge cards. - is a revolving live of credit that is offered
by banks There is a limit set on the line of credit and the funds
mortgage loan - closed-end credit,made at a specified interest rate for a
specified time period.
collateralized loan. - A loan that is secured by collateral, properties or
assets that are subject to seizure on default.
collateralized loan. - When a person brings an item to a pawnshop to
obtain cash, the transaction is considered
Federal Housing Administration (FHA) loan - insures lenders who make
mortgage loans that are riskier than regular bank loans because
uncollateralized loan - A personal loan without assets to cover the loan
amount.
Collateral - tangible asset that is used to secure a loan. In the case of a
mortgage, the actual house or apartment serves as the collateral for that loan.
bankruptcy - will appear on the person?s credit report for 10 years
Notify the credit card companies in order to negotiate a new payment plan.
- Notify the credit card companies in order to negotiate a new payment plan.
Installment loan - a loan repaid with interest in equal periodic payments
dispose of a credit card - Cut up the card, put parts in different garbage
bags, and instruct the credit card company in writing or by phone to close the
account
budget variance. - the difference between the budgeted amount and the
actual amount that you spend
debt ratio - shows the relationship between debt and net worth.
debt ratio - The lower the ratio the better off financially the person is.
debt ratio - calculated by dividing liabilities by net worth
excise tax - government imposes a tax on specific goods and services such
as alcohol, cigarettes, gasoline, and airline
capital gains - are profits made from the sale of capital assets such as
stocks and bonds
Capital gains - tax deferred until the asset is sold,
Capital Gains Tax - If held over one year are considered long-term capital
gains and are taxed at a lower tax rate or in some cases are not taxed at all.
variable expenses - change from one period to another,examples Electricity
and food expenditures
get advice from your friends - will help you the least in managing your
money?
Financial planning - the process of developing and implementing a
coordinated series of actions to achieve financial success.
Financial planning - need to be reviewed and adjusted to accommodate
changing needs and goals.
emergency fund - Should be an important consideration when saving
money
, liquidity - being in cash or easily convertible to cash, How easily an asset
can be converted into cash
Social Security - benefits depends on the person?s earnings over a lifetime
of work
Department store charge cards. - open-end credit
Department store charge cards. - is a revolving live of credit that is offered
by banks There is a limit set on the line of credit and the funds
mortgage loan - closed-end credit,made at a specified interest rate for a
specified time period.
collateralized loan. - A loan that is secured by collateral, properties or
assets that are subject to seizure on default.
collateralized loan. - When a person brings an item to a pawnshop to
obtain cash, the transaction is considered
Federal Housing Administration (FHA) loan - insures lenders who make
mortgage loans that are riskier than regular bank loans because
uncollateralized loan - A personal loan without assets to cover the loan
amount.
Collateral - tangible asset that is used to secure a loan. In the case of a
mortgage, the actual house or apartment serves as the collateral for that loan.
bankruptcy - will appear on the person?s credit report for 10 years
Notify the credit card companies in order to negotiate a new payment plan.
- Notify the credit card companies in order to negotiate a new payment plan.
Installment loan - a loan repaid with interest in equal periodic payments
dispose of a credit card - Cut up the card, put parts in different garbage
bags, and instruct the credit card company in writing or by phone to close the
account
