WISE Certification Study Guide questions with correct answers

If a fire happens to someone's house, what type of insurance will pay for the damage most likely? Answer Home insurance If a corporation was sued and lost a major lawsuit, what will happen to the price of their stock? Answer Price of stock increases Why is a stock characterized as a "growth" stock? Answer The corporation is expected to increase significantly in revenues and earnings. An example of a long-term investment is: Answer Investing in mutual funds A person is using a $25 gift card for the first time. The balance left to use on the card is now $23. What is the reason for the reduced available amount? Answer Inactivity fee T/F....Debit card puchases should be recorded in a checkbook register. Answer True Why does the government tax cigarettes? Answer Increase revenue and stop people from smoking Roy Williams has $1,000 to invest. He is thinking that interest rates or rates of return will increase during the year. What should he buy? Answer He should buy a certificate of deposit that is will mature either in 3 mo