WISE Study Guide Questions and Answers Rated A+

1 WISE Study Guide Q uestions and Answers Rated A+ What method does the Federal Reserve emplo y to control the nation's money flow? ✔✔Monetary policy If Nora needed to place a long -distance call but had no ca sh, which method allowed her to make the call? ✔✔Using her credit card Which example illustrates an electronic funds transfer (EFT)? ✔✔A transaction performed at an ATM What is the informal term for U.S. money? ✔✔Greenbacks What is the best practice for keeping your ATM PIN secure? ✔✔Store it in a safe place at home 2 What function does a cash card serve? ✔✔It is preloaded with a fixed amount of funds for making purchases What are the different coin values used in the United States? ✔✔1 cent, 5 cents, 10 cents, 25 cents, 50 cents, and $1 How does a person’s level of education typically impact their earning potential? ✔✔Individuals with advanced degrees often earn significantly more compared to those who did not complete high school How does the Federal Reserve distribute new currency and coins into the economy? ✔✔Through its structured distribution network What approach is most effective for ensuring your ATM PIN remains confidential? ✔✔Choose a PIN with a mix of random letters and numbers Which of the following statements about ATM cards is inaccurate? ✔✔They always allow fee -free cash withdrawals worldwide 3 Susan allowed Marie to use her debit card and PIN for a $25 withdrawal, but Marie withdrew $100. What recourse does Susan have for the additional $75? ✔✔Susan cannot recover the $75 because she authorized the card and PIN usage What ter m describes a system where goods and services are exchanged directly without using money? ✔✔Barter If Jami’s debit card is lost and misused, and she did not report it for three months, what is the maximum amount she could be liable for? ✔✔Unlimi ted liability A high school student has begun to investigate the field of finance as a career ch oice. In deciding about the field, the student should focus on which question first? ✔✔Will I find a balance between financial rewards and personal satisfaction from work? What type of financial source is not suitable for saving, investing, or spending purposes? ✔✔Capital losses from selling stocks