WISE PRACTICE TEST 2 EXAM 2026
QUESTIONS AND ANSWERS 100% CORRECT
⩥ debt ratio Answer: shows the relationship between debt and net worth.
⩥ debt ratio Answer: The lower the ratio the better off financially the
person is.
⩥ debt ratio Answer: calculated by dividing liabilities by net worth
⩥ excise tax Answer: government imposes a tax on specific goods and
services such as alcohol, cigarettes, gasoline, and airline
⩥ capital gains Answer: are profits made from the sale of capital assets
such as stocks and bonds
⩥ Capital gains Answer: tax deferred until the asset is sold,
⩥ Capital Gains Tax Answer: If held over one year are considered long-
term capital gains and are taxed at a lower tax rate or in some cases are
not taxed at all.
, ⩥ variable expenses Answer: change from one period to
another,examples Electricity and food expenditures
⩥ get advice from your friends Answer: will help you the least in
managing your money?
⩥ Financial planning Answer: the process of developing and
implementing a coordinated series of actions to achieve financial
success.
⩥ Financial planning Answer: need to be reviewed and adjusted to
accommodate changing needs and goals.
⩥ emergency fund Answer: Should be an important consideration when
saving money
⩥ liquidity Answer: being in cash or easily convertible to cash, How
easily an asset can be converted into cash
⩥ Social Security Answer: benefits depends on the person?s earnings
over a lifetime of work
⩥ Department store charge cards. Answer: open-end credit
QUESTIONS AND ANSWERS 100% CORRECT
⩥ debt ratio Answer: shows the relationship between debt and net worth.
⩥ debt ratio Answer: The lower the ratio the better off financially the
person is.
⩥ debt ratio Answer: calculated by dividing liabilities by net worth
⩥ excise tax Answer: government imposes a tax on specific goods and
services such as alcohol, cigarettes, gasoline, and airline
⩥ capital gains Answer: are profits made from the sale of capital assets
such as stocks and bonds
⩥ Capital gains Answer: tax deferred until the asset is sold,
⩥ Capital Gains Tax Answer: If held over one year are considered long-
term capital gains and are taxed at a lower tax rate or in some cases are
not taxed at all.
, ⩥ variable expenses Answer: change from one period to
another,examples Electricity and food expenditures
⩥ get advice from your friends Answer: will help you the least in
managing your money?
⩥ Financial planning Answer: the process of developing and
implementing a coordinated series of actions to achieve financial
success.
⩥ Financial planning Answer: need to be reviewed and adjusted to
accommodate changing needs and goals.
⩥ emergency fund Answer: Should be an important consideration when
saving money
⩥ liquidity Answer: being in cash or easily convertible to cash, How
easily an asset can be converted into cash
⩥ Social Security Answer: benefits depends on the person?s earnings
over a lifetime of work
⩥ Department store charge cards. Answer: open-end credit
