WISE test study guide
Fringe Benefits - ANS-Fringe benefits are benefits provided by an employer to an
employer for example, a company car.
Garnishment - ANS-Garnishment lets debt collectors take payment directly from your
paycheck or bank account.
Disposable income - ANS-income remaining after deduction of taxes and other
mandatory charges, available to be spent or saved as one wishes.
Windfall Income - ANS-An unexpected gain in income which could be due to winning a
lottery, unforeseen inheritance or shortage of supply
Trade Offs - ANS-A trade-off involves a sacrifice that must be made to get a certain
product or experience
Principal - ANS-Principal is most commonly used to refer to the amount borrowed or the
amount still owed on a loan
Line of Credit - ANS-an amount of credit extended to a borrower.
Promissory Note - ANS-a signed document containing a written promise to pay a stated
sum to a specified person or the bearer at a specified date or on demand
Redlining - ANS-refuse (a loan or insurance) to someone because they live in an area
deemed to be a poor financial risk
Lien - ANS-A right to keep possession of property belonging to another person until a
debt owed by that person is discharged.
Usury - ANS-the illegal action or practice of lending money at unreasonably high rates
of interest
Debtors Anonymous - ANS-is a twelve-step program for people who want to stop
incurring unsecured debt
Fringe Benefits - ANS-Fringe benefits are benefits provided by an employer to an
employer for example, a company car.
Garnishment - ANS-Garnishment lets debt collectors take payment directly from your
paycheck or bank account.
Disposable income - ANS-income remaining after deduction of taxes and other
mandatory charges, available to be spent or saved as one wishes.
Windfall Income - ANS-An unexpected gain in income which could be due to winning a
lottery, unforeseen inheritance or shortage of supply
Trade Offs - ANS-A trade-off involves a sacrifice that must be made to get a certain
product or experience
Principal - ANS-Principal is most commonly used to refer to the amount borrowed or the
amount still owed on a loan
Line of Credit - ANS-an amount of credit extended to a borrower.
Promissory Note - ANS-a signed document containing a written promise to pay a stated
sum to a specified person or the bearer at a specified date or on demand
Redlining - ANS-refuse (a loan or insurance) to someone because they live in an area
deemed to be a poor financial risk
Lien - ANS-A right to keep possession of property belonging to another person until a
debt owed by that person is discharged.
Usury - ANS-the illegal action or practice of lending money at unreasonably high rates
of interest
Debtors Anonymous - ANS-is a twelve-step program for people who want to stop
incurring unsecured debt
