WISE Financial Literacy Test Updated Study Guide
Questions and Answers | Focused Revision Pack
| A+ Verified
• What is capital gain? -✓✓Income on stocks
• What is a bull/bear market? -✓✓A bull market is a promising market (bull attacks up)
A bear market is a market that isn't doing well (bear attacks down)
• What is an exemption? -✓✓the amounts of money you get taken away from taxes for
having dependents
• Annual deductible -✓✓What you have to pay in the beginning of the year before
insurance kicks in
• Managed Health Care Plan -✓✓-you have to go to your primary care physician who
determines whether you should see a specialist
-co-pays at the primary care physician
• What is the only type of life insurance without a cash value? -✓✓Term
• When you reinvest dividends, what does that go towards buying? -✓✓More of the
same stock
• What is the largest equities market in the world? -✓✓New York Stock Exchange
(NYSE)
• Mutual Funds -✓✓an investment that holds a wide range of different investment
instruments, providing diversification
• Money Market -✓✓safe, bank offering
• Growth stocks -✓✓new companies that are trying to grow (you want to invest in them)
• Credit reports -✓✓you can receive one free one every year from each of the three
companies
• Bonds -✓✓inverse relationship with interest
(one goes up, other goes down)
• Credit Union -✓✓a group of people, self owned, non profit
Questions and Answers | Focused Revision Pack
| A+ Verified
• What is capital gain? -✓✓Income on stocks
• What is a bull/bear market? -✓✓A bull market is a promising market (bull attacks up)
A bear market is a market that isn't doing well (bear attacks down)
• What is an exemption? -✓✓the amounts of money you get taken away from taxes for
having dependents
• Annual deductible -✓✓What you have to pay in the beginning of the year before
insurance kicks in
• Managed Health Care Plan -✓✓-you have to go to your primary care physician who
determines whether you should see a specialist
-co-pays at the primary care physician
• What is the only type of life insurance without a cash value? -✓✓Term
• When you reinvest dividends, what does that go towards buying? -✓✓More of the
same stock
• What is the largest equities market in the world? -✓✓New York Stock Exchange
(NYSE)
• Mutual Funds -✓✓an investment that holds a wide range of different investment
instruments, providing diversification
• Money Market -✓✓safe, bank offering
• Growth stocks -✓✓new companies that are trying to grow (you want to invest in them)
• Credit reports -✓✓you can receive one free one every year from each of the three
companies
• Bonds -✓✓inverse relationship with interest
(one goes up, other goes down)
• Credit Union -✓✓a group of people, self owned, non profit
