WISE PRACTICE TEST EXAM WITH VERIFIED SOLUTIONS.

Wise Practice Test Exam With Verified m m m m m




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Which of the following does the Federal Reserve use to regulate the nation's money
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supply? (Got Correct)
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Correct Answer : C: Monetary policy - correct answer-Reason : The Federal Reserve m t m t m t m t m t m t m m t t m t m t m t m t m t




uses monetary policy to regulate the nation's money supply. Monetary policy is directed
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at expanding or contracting the supply of money and credit in the U.S. economy. In
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theory, if there is too little money in circulation, consumers will spend less, interest rates
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will be high, and unemployment will rise. In this situation, the Fed can deliberately
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increase the amount of money in circulation, leading to lower interest rates, increases in
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consumer spending, and higher employment rates. If there is too much money in
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circulation, however, prices rise and the value of the dollar decreases (inflation)
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Purchases made with your debit card are usually: (Correct) m t m t m t m t m t m t m t m t




Correct Answer : A: Deducted immediately from your checking account - correct answer- m t m t m t m t m t m t m t m t m t m t m m t t m t




Reason : Debit card purchases are immediately deducted from your checking account m t m t m t m t m t m t m t m t m t m t m t




balance while credit card purchases are added to your credit card balance. You have
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about 20 days after receiving a credit card bill to pay it without being charged interest.
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Through the use of a credit card, you get use of goods or services before they are paid
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for.
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The common name for U.S. currency is: (Correct)
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Correct Answer : C: Green backs - correct answer-Reason : The background color of all m t m t m t m t m t m t m m t t m t m t t
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United States currency (bills) is primarily green.
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Question 4 : Jami lost her debit card. She did not report it missing for 3 months. If an m t m t m t m t m t m t m t m t m t m t m t m t m t m t m t m t m t m t




unauthorized person used her debit card, her maximum liability is: (Correct)
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Correct Answer : C: Unlimited liability - correct answer-Reason : According to the m t m t m t m t t
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Electronic Fund Transfer Act, if a consumer reports the theft or loss of an ATM or debit
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card to the issuing financial institution within two business days, he/she is liable for not
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more than $50 of unauthorized purchases. If reported within 60 days, the consumer is
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liable for up to $500 of unauthorized purchases. If reported after 60 days or not reported,
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the consumer may be liable for the entire amount of unauthorized purchases.
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Question 5 : Identify the background color of a U.S. $5.00 bill. (Correct) m t m t m t m t m t m t m t t
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Correct Answer : C: Green - correct answer-Reason : The background color of all United m t m t m t m t m t m m t t m t m t m t m t m t m t m t m t




States paper currency (bills) is green.
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, Question 6 : Scott just got an ATM card to use and must choose a PIN (Personal m t m t m t m t m t m t t
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Identification Number). How should he select a PIN that will give him maximum
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protection against anyone else being able to find out what the PIN is? (Incorrect)
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Correct Answer : B: Use a random selection of letters and numbers - correct answer- m t m t m t m t m t m t m t m t m t m t m t m t m m t t m t




Reason : A PIN (personal identification number) is a secret code that protects the privacy m t m t m t m t m t m t m t m t m t m t m t m t m t m t




of your accounts and allows only you to access them. The numbers should not be
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composed of numbers easily associated with the person choosing the PIN such as birth
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date, telephone number, or street number address. It should be a random series of
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numbers and letters that would be hard for unauthorized users to guess. Also, never
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write your PIN on your ATM or debit card or in your check book because then a thief
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would you?re your confidential information needed to make purchases or withdraw all
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the money out of your account.
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Question 7 : A type of electronic funds transfer (EFT) is: (Correct) m t m t m t m t m t m t m t m t m t m t m t




Correct Answer : D: An ATM transaction - correct answer-Reason : According to the m t m t m t m t m t m t m t m m t t m t m t m t m t m t




Electronic Funds Transfer Act, Electronic funds transfers (EFTs) are any transfers of
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funds, other than a transaction originated by check, draft, or other paper instrument,
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initiated through electronic terminal, telephone, or computer, to authorize a financial
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institution to debit or credit an account. EFT's can be used to carry out many financial
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transactions, for example, to pay utility bills, make installment loan payments, and
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transfer funds from a savings account to a checking account or vice versa.
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Question 8 : A high school student has begun to investigate the field of finance as a m t m t m t m t m t m t m t m t m t m t m t m t m t m t m t m t




career choice. In deciding about the field, the student should focus on which question
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first? (Correct)
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Correct Answer : A: Will I find a balance between financial rewards and personal m t m t m t m t m t m t m t m t m t m t m t m t m t




satisfaction from work? - correct answer-Reason : It is important to investigate a career
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with the idea of not only getting a sense of earning potential, types of positions available
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and the training necessary to acquire these positions but what are the chances that the
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individual will enjoy working in this field.
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Question 9 : m t m t m t




Nora needed to make a long-distance call from a pay phone and did not have the cash.
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She was able to make the call by using her: (Correct)
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Correct Answer : C: Cash card - correct answer-Reason : Consumers purchase cash m t m t m t m t m t m t m m t t m t m t m t m t m t




cards for a specific amount of money. The amount paid is stored in the card's memory,
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and the card can be used to pay for goods or services specific to a particular store or
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action until the amount stored, or "loaded" on the card, has been spent. The type of cash
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card Nora used is called a phone card. Some retail chain stores sell cash cards which
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can be used to pay for their products. Cash cards are either disposable or re-loadable.
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Disposable cash cards cannot be replenished (loaded again). With re-loadable cash
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cards, the consumer can return to the merchant and pay to have the balance on the card
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replenished.
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Question 10 : A cash card generally: (Incorrect) m t m t m t m t m t m t m t




Correct Answer : B: Is purchased with a specific amount of money that can be used to pay m t m t m t m t m t m t m t m t m t m t m t m t m t m t m t m t m t




for goods or services - correct answer-Reason : Consumers purchase cash cards for a
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specific amount of money. The amount paid is stored in the card's memory, and the card
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