Wise Practice || All Answers are Valid.
It's important to reconcile your checking account so you can make sure neither you or the bank
have made mistakes. It also guarantees that you know exactly how much money you have in
your checking account. correct answers True
Which are institutions that give loans? correct answers Pawn Shop, Commercial Bank, Credit
Union, and Payday Lender
The Federal Reserve System: correct answers Is the central bank of the United States, Was
created by congress to provide a safer monetary system, and regulates monetary policies of the
United States
What is deflation? correct answers The rate at which the general level of prices goes down
What is a cashier's check? correct answers A check guaranteed by the bank that writes the check
What is liquidity in business? correct answers How quickly you can convert an asset to cash
Which savings vehicle is most liquid? correct answers Simple savings account
Which of the following will charge the highest interest rate on a loan? correct answers Payday
Lenders
What is a credit union? correct answers A non-profit institution that is owned by its members and
often provides higher dividends and lower interest rates on loans
If you want to have the most money possible for retirement, it is better to start saving when
you're about 15 years away from retirement instead of when you're younger. correct answers
False
, What is a credit card cash advance? correct answers Getting cash from your credit card (like
from an ATM) and paying a high fee for doing so
What is compound interest? correct answers When you earn interest on your money and keep it
in the bank so you earn interest on it plus your initial deposit (interest on interest)
Which earns you more money over time? correct answers Compound Interest
The ____ is the value of money figuring in a given amount of interest earned over a given
amount of time. correct answers Time Value of Money
The ____ tells you how many years it will take an investment to double at a particular interest
rate. correct answers The Rule of 72
You should reconcile your checking account _____. correct answers When you get your monthly
bank statement
The Truth In Lending act means that ____. correct answers The lender must tell you the amount
you have to pay off, including interest
If you make the MINIMUM payment due on a credit card each month, ____. correct answers
You will end up paying a lot of money in interest fees and it will take you a long time to pay off
your balance
What is a deductible? correct answers The amount you must pay before your insurance kicks in
(starts paying)
The Rule of 72 is used to determine how quickly your money will double at different interest
rates. Using this rule, how many years will it take $10,000 to become $20,000 if you are earning
a rate of return of 8% correct answers 9 Years
It's important to reconcile your checking account so you can make sure neither you or the bank
have made mistakes. It also guarantees that you know exactly how much money you have in
your checking account. correct answers True
Which are institutions that give loans? correct answers Pawn Shop, Commercial Bank, Credit
Union, and Payday Lender
The Federal Reserve System: correct answers Is the central bank of the United States, Was
created by congress to provide a safer monetary system, and regulates monetary policies of the
United States
What is deflation? correct answers The rate at which the general level of prices goes down
What is a cashier's check? correct answers A check guaranteed by the bank that writes the check
What is liquidity in business? correct answers How quickly you can convert an asset to cash
Which savings vehicle is most liquid? correct answers Simple savings account
Which of the following will charge the highest interest rate on a loan? correct answers Payday
Lenders
What is a credit union? correct answers A non-profit institution that is owned by its members and
often provides higher dividends and lower interest rates on loans
If you want to have the most money possible for retirement, it is better to start saving when
you're about 15 years away from retirement instead of when you're younger. correct answers
False
, What is a credit card cash advance? correct answers Getting cash from your credit card (like
from an ATM) and paying a high fee for doing so
What is compound interest? correct answers When you earn interest on your money and keep it
in the bank so you earn interest on it plus your initial deposit (interest on interest)
Which earns you more money over time? correct answers Compound Interest
The ____ is the value of money figuring in a given amount of interest earned over a given
amount of time. correct answers Time Value of Money
The ____ tells you how many years it will take an investment to double at a particular interest
rate. correct answers The Rule of 72
You should reconcile your checking account _____. correct answers When you get your monthly
bank statement
The Truth In Lending act means that ____. correct answers The lender must tell you the amount
you have to pay off, including interest
If you make the MINIMUM payment due on a credit card each month, ____. correct answers
You will end up paying a lot of money in interest fees and it will take you a long time to pay off
your balance
What is a deductible? correct answers The amount you must pay before your insurance kicks in
(starts paying)
The Rule of 72 is used to determine how quickly your money will double at different interest
rates. Using this rule, how many years will it take $10,000 to become $20,000 if you are earning
a rate of return of 8% correct answers 9 Years
