WISE Test Exam Questions With Verified And Updated Solutions.

WISE Test Exam Questions With Verified And Updated Solutions. One of Andre's seldom-used credit cards has been stolen without his knowledge. When he gets his monthly statement, he realizes that someone else has been using the card and reports it stolen. The maximum amount of unauthorized purchases he is liable for is: - answer$50 Consumers who file for bankruptcy are still responsible for: - answerTax claims and student loans Which of the following provides an increase in assets or wealth? - answerHaving capital gains The denominations of coins in the United States are: - answer$.01, $.05, $.10, $.25, $.50, $1.00 Mutual funds are: - answerAn investment that holds a wide range of different investment instruments, providing diversification Michele and Claudia have a seven year old son. They won $50,000 on a TV games show and want to put it away for their son's education. Which of the following has the highest potential growth and the highest risk? - answerCommon Stock Banks use savings account deposits to: - answerGive loans to consumers and businesses You have a checking account balance of $100 and you deposit a personal $200 check from your brother in you checking account. When will you be able to withdraw $150 in cash? - answer3 to 7 days later, depending on your bank's check clearance policy Why is term life insurance usually the least expensive type of life insurance? - answerThe policy only pays a death benefit Neil will be traveling by air in Southeast Asia for six-week vacation. Which step will not provide protection during the trip? - answerTake his passport Victims of predatory lending practices are typically: - answerThe elderly and people with a poor credit history How can you avoid becoming a victim of identity theft? - answerAvoid giving your Social Security number on a phone call you did not initate Which of the following statements is usually true about indivuals who are financially literate? - answerThey understand the basics of personal finance and money management Which of the following is a disadvantage of using phone cards, debit cards, electronic transfers, and ATM cards? - answerThey expose consumers to greater likelihood of identity theft The price of the Candy Corporation Stock will generally increase when there is: - answerPositive news about corporate earnings The process of setting aside money and putting it to work by having it earn intrest or dividends or gain value in the equities market with the idea of having additional funds to use in the future is described as: - answerSavings and Investing The most liquid type of investment is: - answerA money market account Joan wants to open a checking account and wonders if checking accounts pay interest. How would you answer her question? - answerSome types of checking accounts pay interest The purpose of Insurance is NOT to: - answerDiversify an investment portfolio Generally, the higher the deductible on an insurance policy, the - answerLower the premium A credit card finance charge is: - answerThe dollar amount it cost to use credit Approximately, what is the annual finance charge for each $100 owed on a credit card with a 16% annual interest rate (APR)? - answer$16.00 New coins and currency make their way into the general economy, consumers and businesses, through the distribution system of the: - answerFederal Reserve System Which of the following provides an increase in assets or wealth? - answerHaving capital gains A factor that is likely to affect the market price of a stock is: - answerCorporate profits An investor buys 100 shares of a common stock @ $36.00 a share. The stock is now selling at $38.00 a share. When deciding whether to hold or sell the stock, which factor is it important for the investor to consider? - answerThe commission charged for buying and selling the stock Margaret wants to store a valuable coin collection and important papers. Generally, consumers should: - answerRent a safe deposit box for their valuebles The term used to describe the ease and speed with which you can convert savings or an investment to cash is: - answerLiquidty Richard's auto insurance policy ecpired on the 5/15/2002. Richard was upset with his insurance agent and decided to change insureance companies. At 10:00am on 5/16/2002, as he drove to a