Wise Test Vocabulary Study Guide
Questions & Answers
Line of credit Correct Ans-A financial arrangement between a firm and a bank in which the
bank pre-approves credit up to a specified limit, provided that the firm maintains an acceptable
credit rating
Liquidation Correct Ans-Closing down the operations of a business and selling its assets and
operations to pay its debts and distribute any gains to stockholders.
Mortgage Correct Ans-A legal document used to secure the performance of an obligation, in
which the borrower or mortgagor agrees to pledge property to secure the debt represented by
the promissory note. (A contract).
Payday loans Correct Ans-a loan where a borrower gets a cash advanced based on his
paycheck. These loans generally must be repaid on the next payday
PIN Correct Ans-pin number that to your debit card, used at ATMs
Repossession Correct Ans-Taking away property due to failure to make loan or credit
payments
, Revolving credit Correct Ans-A form of credit in which the total amount of the bill does not
have to be paid each month; however, a finance charge will be figured on the amount not paid.
Additional purchases can be made even though money is owed on previous purchases. The
lender typically establishes an approved credit limit to represent the maximum amount of credit
available. Credit cards are usually revolving credit.
Secured credit card Correct Ans-A credit card that requires you to promise collateral to
receive credit.
Secured loans Correct Ans-loans backed by collateral that the bank can claim if the
borrowers do not repay them
Variable rate Correct Ans-An interest rate that changes at the discretion of the credit card
company or lender
Bear market Correct Ans-A steady drop in the stock market over a period of time
Bond Correct Ans-A financial security that represents a promise to repay a fixed amount of
funds
Bull market Correct Ans-A period of increased stock trading and rising stock prices
Questions & Answers
Line of credit Correct Ans-A financial arrangement between a firm and a bank in which the
bank pre-approves credit up to a specified limit, provided that the firm maintains an acceptable
credit rating
Liquidation Correct Ans-Closing down the operations of a business and selling its assets and
operations to pay its debts and distribute any gains to stockholders.
Mortgage Correct Ans-A legal document used to secure the performance of an obligation, in
which the borrower or mortgagor agrees to pledge property to secure the debt represented by
the promissory note. (A contract).
Payday loans Correct Ans-a loan where a borrower gets a cash advanced based on his
paycheck. These loans generally must be repaid on the next payday
PIN Correct Ans-pin number that to your debit card, used at ATMs
Repossession Correct Ans-Taking away property due to failure to make loan or credit
payments
, Revolving credit Correct Ans-A form of credit in which the total amount of the bill does not
have to be paid each month; however, a finance charge will be figured on the amount not paid.
Additional purchases can be made even though money is owed on previous purchases. The
lender typically establishes an approved credit limit to represent the maximum amount of credit
available. Credit cards are usually revolving credit.
Secured credit card Correct Ans-A credit card that requires you to promise collateral to
receive credit.
Secured loans Correct Ans-loans backed by collateral that the bank can claim if the
borrowers do not repay them
Variable rate Correct Ans-An interest rate that changes at the discretion of the credit card
company or lender
Bear market Correct Ans-A steady drop in the stock market over a period of time
Bond Correct Ans-A financial security that represents a promise to repay a fixed amount of
funds
Bull market Correct Ans-A period of increased stock trading and rising stock prices
