WISE Practice Test Questions &
Answers
Question : When Mary bought a DVD player, she charged it on her credit card. Her purchase
created a(an):
A: Reserve
B: Debt
C: Savings
D: Investment Correct Ans-Correct Answer : B: Debt
Question :A government report indicated that the use of Pax's aspirin-free painkiller resulted in
100 cases of stomach poisoning. A large number of Pax's stockholders are likely to:
A: Buy shares causing the price of the stock to increase
B: Sell shares causing the price of the stock to decline
C: Not react, causing the price of the stock to remain about the same
D: Buy Pax corporate bonds Correct Ans-Correct Answer : B: Sell shares causing the price of
the stock to decline
Reason : The share price is likely to decrease because of the negative publicity and the costs
associated with potential lawsuits and expenses the company will likely incur.
Question : If a business wants to raise capital but not create debt, it can:
,A: Float a bond issue
B: Issue common stock
C: Borrow money from a commercial bank
D: Borrow money from the government Correct Ans-Correct Answer : B: Issue common
stock
Question : Gwen receives a bill from her auto insurance company, and she sends a check to the
company to make sure her policy is not cancelled. The cost of her policy is called the:
A: Co-insurance clause
B: Premium
C: Deductible
D: Exclusion Correct Ans-Correct Answer : B: Premium
Reason : The periodic payment made by a policy owner to keep the policy in force is called the
premium. People can choose to pay the premium once a year (annually), semi-annually,
quarterly, or monthly. Paying a premium annually will cost the least.
Question : When Jessie needs health care, she must first go to her primary care physician who
coordinates her care and decides whether Jessie should see a specialist. Jessie pays $10 as the
co-pay when she sees her primary care doctor. Jessie has which type of health insurance?
A: Fee-for-service health plan
,B: Managed care health plan
C: Medicaid health plan
D: Comprehensive health plan Correct Ans-Correct Answer : B: Managed care health plan
What tax form will you probably fill out the first time you file taxes? Correct Ans-1040EZ
Question : What is the largest equities market in the world?
A: American Stock Exchange (AMEX)
B: NASDAQ market
C: New York Stock Exchange (NYSE)
D: Over-the-counter (OTC) market Correct Ans-The New York Stock Exchange NYSE
RULE of 72: Correct Ans-HOW LONG IT WILL TAKE TO DOUBLE YOUR MONEY at a given
INTEREST RATE= 72/r
When an unmarried individual makes a contribution to a Roth Individual Retirement Account
(IRA) it is: Correct Ans-D: Not currently tax deductible.
A Roth IRA allows a $3000 annual contribution; $3500 if the individual is over 50 years of age.
which is not tax deductible
, Which product is considered to be an investment? Correct Ans-C. A corporate bond.
A financial investment is a choice made by a consumer in anticipation of earning interest.
Julian is a single and recent college graduate who just got his first full-time job. Which of the
following should be his first financial goal? Correct Ans-C. establishing a fund for
emergencies
Which of the following is necessary for successful budgeting? Correct Ans-C. The ability to
adjust spending to money available
An important consideration when saving money for emergencies is: Correct Ans-B. high
degree of safety and liquidity
What does a well designed, successful financial plan include? Correct Ans-C. Retirement
planning
Our values are: Correct Ans-B. The basic principles that guide our actions and beliefs
Jane saw a breakfast cereal being advertised on TV and insisted that her mother purchases this
cereal. This is an example of: Correct Ans-A: power of persuasion in creating demand
Answers
Question : When Mary bought a DVD player, she charged it on her credit card. Her purchase
created a(an):
A: Reserve
B: Debt
C: Savings
D: Investment Correct Ans-Correct Answer : B: Debt
Question :A government report indicated that the use of Pax's aspirin-free painkiller resulted in
100 cases of stomach poisoning. A large number of Pax's stockholders are likely to:
A: Buy shares causing the price of the stock to increase
B: Sell shares causing the price of the stock to decline
C: Not react, causing the price of the stock to remain about the same
D: Buy Pax corporate bonds Correct Ans-Correct Answer : B: Sell shares causing the price of
the stock to decline
Reason : The share price is likely to decrease because of the negative publicity and the costs
associated with potential lawsuits and expenses the company will likely incur.
Question : If a business wants to raise capital but not create debt, it can:
,A: Float a bond issue
B: Issue common stock
C: Borrow money from a commercial bank
D: Borrow money from the government Correct Ans-Correct Answer : B: Issue common
stock
Question : Gwen receives a bill from her auto insurance company, and she sends a check to the
company to make sure her policy is not cancelled. The cost of her policy is called the:
A: Co-insurance clause
B: Premium
C: Deductible
D: Exclusion Correct Ans-Correct Answer : B: Premium
Reason : The periodic payment made by a policy owner to keep the policy in force is called the
premium. People can choose to pay the premium once a year (annually), semi-annually,
quarterly, or monthly. Paying a premium annually will cost the least.
Question : When Jessie needs health care, she must first go to her primary care physician who
coordinates her care and decides whether Jessie should see a specialist. Jessie pays $10 as the
co-pay when she sees her primary care doctor. Jessie has which type of health insurance?
A: Fee-for-service health plan
,B: Managed care health plan
C: Medicaid health plan
D: Comprehensive health plan Correct Ans-Correct Answer : B: Managed care health plan
What tax form will you probably fill out the first time you file taxes? Correct Ans-1040EZ
Question : What is the largest equities market in the world?
A: American Stock Exchange (AMEX)
B: NASDAQ market
C: New York Stock Exchange (NYSE)
D: Over-the-counter (OTC) market Correct Ans-The New York Stock Exchange NYSE
RULE of 72: Correct Ans-HOW LONG IT WILL TAKE TO DOUBLE YOUR MONEY at a given
INTEREST RATE= 72/r
When an unmarried individual makes a contribution to a Roth Individual Retirement Account
(IRA) it is: Correct Ans-D: Not currently tax deductible.
A Roth IRA allows a $3000 annual contribution; $3500 if the individual is over 50 years of age.
which is not tax deductible
, Which product is considered to be an investment? Correct Ans-C. A corporate bond.
A financial investment is a choice made by a consumer in anticipation of earning interest.
Julian is a single and recent college graduate who just got his first full-time job. Which of the
following should be his first financial goal? Correct Ans-C. establishing a fund for
emergencies
Which of the following is necessary for successful budgeting? Correct Ans-C. The ability to
adjust spending to money available
An important consideration when saving money for emergencies is: Correct Ans-B. high
degree of safety and liquidity
What does a well designed, successful financial plan include? Correct Ans-C. Retirement
planning
Our values are: Correct Ans-B. The basic principles that guide our actions and beliefs
Jane saw a breakfast cereal being advertised on TV and insisted that her mother purchases this
cereal. This is an example of: Correct Ans-A: power of persuasion in creating demand
