Wise Test Questions & Answers 100%
Solved
A pharmacy is to drugs as the American Stock Exchange is to: Correct Ans-Securities
Using a brokerage firm, a qualified investor buys 1000 shares of a common stock at $50 a share
on 50% margin. This means that the Correct Ans-brokerage firm is lending the investor 50%
of the money.
An investor bought 40 shares of ABC corporation's stock at $80 a share. Two weeks later, the
investor receives notice that the corporation has approved a 2-for-1 stock split. Based on this
information, the investor would own at the moment of the split Correct Ans-80 shares of the
stock and the price of each share is $40.
To determine the time value of depositing $100 in a savings account, a person needs to know
the interest rate and Correct Ans-the rate of inflation.
The "Rule of 72" is an easy way to: Correct Ans-Calculate how fast your savings will double in
value at given interest rates
The information that a lender must disclose to consumers applying for a cash loan is: Correct
Ans-The annual percentage rate (APR), and/or the finance charge
, Interest earned on interest is known as: Correct Ans-Compounded interest
If a person has $1,000 in a savings account and earns $20 a year in interest on that account, the
rate of return on the money is close to Correct Ans-2%.
For the past five years, a person has had a $20,000 whole life insurance policy that has a cash
value clause. The person decides to surrender the policy. At the time of surrender, the person
will receive Correct Ans-a calculated amount of money which includes the premiums paid as
well as the interest on that money.
A woman has just received a very expensive piece of jewelry. The woman has homeowner's
insurance. Which statement would it be most appropriate for her to make to her insurance
agent? Correct Ans-"I think I need a personal property floater."
A person buys a flat screen, plasma, theater-like television. The person has homeowner?s
insurance. Why would it be appropriate to add a personal property floater to that insurance?
Correct Ans-To cover the cost of replacement should the television get damaged or stolen.
Why is term life insurance usually the least expensive type of life insurance? Correct Ans-The
policy only pays a death benefit
Lucy has no insurance. The situation(s) should she consider insuring against first are: Correct
Ans-Losses resulting from an illness, accident, or disability
Solved
A pharmacy is to drugs as the American Stock Exchange is to: Correct Ans-Securities
Using a brokerage firm, a qualified investor buys 1000 shares of a common stock at $50 a share
on 50% margin. This means that the Correct Ans-brokerage firm is lending the investor 50%
of the money.
An investor bought 40 shares of ABC corporation's stock at $80 a share. Two weeks later, the
investor receives notice that the corporation has approved a 2-for-1 stock split. Based on this
information, the investor would own at the moment of the split Correct Ans-80 shares of the
stock and the price of each share is $40.
To determine the time value of depositing $100 in a savings account, a person needs to know
the interest rate and Correct Ans-the rate of inflation.
The "Rule of 72" is an easy way to: Correct Ans-Calculate how fast your savings will double in
value at given interest rates
The information that a lender must disclose to consumers applying for a cash loan is: Correct
Ans-The annual percentage rate (APR), and/or the finance charge
, Interest earned on interest is known as: Correct Ans-Compounded interest
If a person has $1,000 in a savings account and earns $20 a year in interest on that account, the
rate of return on the money is close to Correct Ans-2%.
For the past five years, a person has had a $20,000 whole life insurance policy that has a cash
value clause. The person decides to surrender the policy. At the time of surrender, the person
will receive Correct Ans-a calculated amount of money which includes the premiums paid as
well as the interest on that money.
A woman has just received a very expensive piece of jewelry. The woman has homeowner's
insurance. Which statement would it be most appropriate for her to make to her insurance
agent? Correct Ans-"I think I need a personal property floater."
A person buys a flat screen, plasma, theater-like television. The person has homeowner?s
insurance. Why would it be appropriate to add a personal property floater to that insurance?
Correct Ans-To cover the cost of replacement should the television get damaged or stolen.
Why is term life insurance usually the least expensive type of life insurance? Correct Ans-The
policy only pays a death benefit
Lucy has no insurance. The situation(s) should she consider insuring against first are: Correct
Ans-Losses resulting from an illness, accident, or disability
