1
WISE FINANCIAL LITERACY TEST NEWEST ACTUAL
QUESTIONS AND VERIFIED SOLUTIONS|ALREADY
GRADED A+ 100%TUTOR VERIFIED
•
1040 - (answers)A tax form filled out by an individual and filed with the IRS
that determines the amount of income tax owed in a single year.
401(k) - (answers)A retirement account offered through an employer, where
an employee can contribute money from his or her
paycheck before or after taxes.
403(b) - (answers)A retirement account similar to a 401(k) plan, but offered by
non-profit organizations, like universities or
charitable organizations.
529 college saving plan - (answers)A savings plan offering tax benefits that can
be used for any qualified educational expenses.
Asset - (answers)Property owned by an individual or organization that has
some value. Can refer to physical items (like a house
or car) or to intangible items (like a stock or bond).
Associate's degree - (answers)A degree granted after two years of study, often
by a community or junior college.
ATM Card - (answers)A payment type similar to a debit card that allows you to
make electronic purchases but requires that you
enter a PIN (Personal Identification Number) for any transaction.
, 2
Annual Percentage Rate (APR) - (answers)Another name for the interest rate
charged on the balance of a credit card.
Auto insurance - (answers)A type of insurance that protects a policyholder in
the case of a car accident. Most states require it by law.
Bachelor's degree - (answers)A degree awarded by a college or university for
completing four years of undergraduate studies.
Balance - (answers)The total amount of money in a banking account at any
given time.
Balance Transfer - (answers)A transfer of your existing credit card balance to
another credit card. Balance transfers are typically used when
a consumer wants to transfer their credit card debt onto a card with a lower
interest rate.
Bonds - (answers)A bond is basically a loan, except that in this case, you're the
lender. When you buy a bond, you loan an
amount of money to the organization issuing the bond at a certain interest rate
for a certain period of time.
You are paid interest from this loan at regular periods, and then, when the
bond matures, you get back your
initial investment plus any additional interest. Treasury and municipal bonds
are specific types of bonds.
Budget - (answers)A budget is a plan of how you will spend the money that
you make or receive.
, 3
Cash Advance - (answers)A loan of cash you obtain with a credit card.
Certificate of deposit - (answers)A type of savings vehicle in which you put
your money away for a certain amount of time, called a term, to
allow your principal to earn interest.
Charge Card - (answers)A payment type that works just like credit cards except
the balance must be paid in full every month.
Claim - (answers)A claim is the request you make to your insurance company
for payment of the benefits allowed by your
coverage. For instance, if you receive a bill for repairs made to your car, you
might submit a claim to your auto
insurance company to request they pay the bill for you.
Compound Interest - (answers)Compound interest is interest that's generated
not only from the money you put into an account, but also
from the interest you make on that money. In other words, with compound
interest, you earn interest on your
interest.
Compounding frequency - (answers)The number of compounding periods in
one year. The greater the compounding frequency, the more often
your interest is calculated and added back into your account. Daily is much
better than annually.
Consilidation Loans - (answers)These combine several student loans into one
bigger loan from a single lender, which is then used to pay off
the balances on the other loans.
, 4
Consumer Fraud - (answers)When a product or service is illegally used to
deceive you into sending money or signing up with a phony
service. Consumer fraud scams frequently start with a fake email, letter or
phone call.
Co-Pay - (answers)A fixed fee that an individual pays for specific medical
services, like a visit to the doctor's office.
Coverage - (answers)Your coverage refers to the range of protection you are
eligible to receive from an insurance plan. Insurance
plans can have different coverage even if they're the same type of insurance
Credit Bureaus - (answers)Credit bureaus, also called credit agencies or credit
reporting agencies, are companies that collect credit
information about individuals. They then calculate a credit score for each
individual based on this information.
Note that credit bureaus are private, for- profit businesses-they are not part of
the government, though they
are overseen by various government agencies. In the United States, the three
major credit bureaus are
Equifax, Experian, and TransUnion.
Credit Cards - (answers)A credit card is a payment type that does not
automatically draw money from your account. Instead, it
provides a short-term loan that you can use to make everyday purchases.
Credit card loans are unsecured,
which means the credit card company can't take your valuables away from you
if you don't pay the loan back.
WISE FINANCIAL LITERACY TEST NEWEST ACTUAL
QUESTIONS AND VERIFIED SOLUTIONS|ALREADY
GRADED A+ 100%TUTOR VERIFIED
•
1040 - (answers)A tax form filled out by an individual and filed with the IRS
that determines the amount of income tax owed in a single year.
401(k) - (answers)A retirement account offered through an employer, where
an employee can contribute money from his or her
paycheck before or after taxes.
403(b) - (answers)A retirement account similar to a 401(k) plan, but offered by
non-profit organizations, like universities or
charitable organizations.
529 college saving plan - (answers)A savings plan offering tax benefits that can
be used for any qualified educational expenses.
Asset - (answers)Property owned by an individual or organization that has
some value. Can refer to physical items (like a house
or car) or to intangible items (like a stock or bond).
Associate's degree - (answers)A degree granted after two years of study, often
by a community or junior college.
ATM Card - (answers)A payment type similar to a debit card that allows you to
make electronic purchases but requires that you
enter a PIN (Personal Identification Number) for any transaction.
, 2
Annual Percentage Rate (APR) - (answers)Another name for the interest rate
charged on the balance of a credit card.
Auto insurance - (answers)A type of insurance that protects a policyholder in
the case of a car accident. Most states require it by law.
Bachelor's degree - (answers)A degree awarded by a college or university for
completing four years of undergraduate studies.
Balance - (answers)The total amount of money in a banking account at any
given time.
Balance Transfer - (answers)A transfer of your existing credit card balance to
another credit card. Balance transfers are typically used when
a consumer wants to transfer their credit card debt onto a card with a lower
interest rate.
Bonds - (answers)A bond is basically a loan, except that in this case, you're the
lender. When you buy a bond, you loan an
amount of money to the organization issuing the bond at a certain interest rate
for a certain period of time.
You are paid interest from this loan at regular periods, and then, when the
bond matures, you get back your
initial investment plus any additional interest. Treasury and municipal bonds
are specific types of bonds.
Budget - (answers)A budget is a plan of how you will spend the money that
you make or receive.
, 3
Cash Advance - (answers)A loan of cash you obtain with a credit card.
Certificate of deposit - (answers)A type of savings vehicle in which you put
your money away for a certain amount of time, called a term, to
allow your principal to earn interest.
Charge Card - (answers)A payment type that works just like credit cards except
the balance must be paid in full every month.
Claim - (answers)A claim is the request you make to your insurance company
for payment of the benefits allowed by your
coverage. For instance, if you receive a bill for repairs made to your car, you
might submit a claim to your auto
insurance company to request they pay the bill for you.
Compound Interest - (answers)Compound interest is interest that's generated
not only from the money you put into an account, but also
from the interest you make on that money. In other words, with compound
interest, you earn interest on your
interest.
Compounding frequency - (answers)The number of compounding periods in
one year. The greater the compounding frequency, the more often
your interest is calculated and added back into your account. Daily is much
better than annually.
Consilidation Loans - (answers)These combine several student loans into one
bigger loan from a single lender, which is then used to pay off
the balances on the other loans.
, 4
Consumer Fraud - (answers)When a product or service is illegally used to
deceive you into sending money or signing up with a phony
service. Consumer fraud scams frequently start with a fake email, letter or
phone call.
Co-Pay - (answers)A fixed fee that an individual pays for specific medical
services, like a visit to the doctor's office.
Coverage - (answers)Your coverage refers to the range of protection you are
eligible to receive from an insurance plan. Insurance
plans can have different coverage even if they're the same type of insurance
Credit Bureaus - (answers)Credit bureaus, also called credit agencies or credit
reporting agencies, are companies that collect credit
information about individuals. They then calculate a credit score for each
individual based on this information.
Note that credit bureaus are private, for- profit businesses-they are not part of
the government, though they
are overseen by various government agencies. In the United States, the three
major credit bureaus are
Equifax, Experian, and TransUnion.
Credit Cards - (answers)A credit card is a payment type that does not
automatically draw money from your account. Instead, it
provides a short-term loan that you can use to make everyday purchases.
Credit card loans are unsecured,
which means the credit card company can't take your valuables away from you
if you don't pay the loan back.
