WGU D363 Personal Finance Complete
Exam Study Questions with Accurate
Answers | Guarantee Pass!
1. How to create wealth - ANSWER · spend less than you make then save or
invest the difference
2. Income targets - ANSWER Make financial strategies, find values and set
goals
3. Net worth - ANSWER · The difference between the value of your assets
and liabilities
4. Cash flow statement - ANSWER Basic statement of transactions
5. Wealth management - ANSWER analyze the effectiveness of wealth
management strategies to ensure financial goals are met
6. Diversification - ANSWER use a strategy which entails not putting all your
eggs in one bowl
7. Bull market - ANSWER a year when stocks increase over 20% or more
8. Bear market - ANSWER a year when stocks decrease under 20% or more
,9. Income versus capital gains - ANSWER income is taxed at 15% while
capital gains is taxed at 10 to 15%
10.Tax exempt incomes - ANSWER municipal bonds, retirement bonds, IRA
accounts if not touched for 5 years
11.Key to success in the stock market - ANSWER stay patient and wait for
returns do not panic!!
12.Renting vs Buying real estate - ANSWER renting in cheaper in the short
term while buying becomes cheaper in the long run by the taxes that take
place
13.Downfall of buying - ANSWER buying a house takes up atleast more than
30% of income
14.Home buying fees - ANSWER there are about 10,000$ in fees when buying
a house
15.Points - ANSWER fees that are prepaid interest they can reduce APR and
help make buying a house cheaper
16.Market volatility - ANSWER the change in price of a stock over a specific
time based off of the most recent price
17.Low volatility vs High volatility - ANSWER · low volatility is emotionally
sound while high makes investors un sound because of the fluctuation of
price
, 18.Investing vs trading - ANSWER Investing is long term while trading in
cvery short term, when an investor starts to pick up knowledge from trading
they tend to bail and fail
19.Buy low - ANSWER sell high
20.Market efficiency - ANSWER the speed in which new information is
reflected in investment prices
21.Active analyst - ANSWER do research on information surrounding a
company to anticipate what is going to happen and stay in front of the game
22.Media - ANSWER always to be ignored as they make a story that is
sensational NOT TO HELP YOUR INVESTMENT
23.Credit report - ANSWER free, a report on the history of your ability to pay
your debts available to all credit providers
24.Credit Cards - ANSWER when used correctly can help grow credit score
when used unproperly they can send you into debt
25.Financial records - ANSWER put into a safe deposit box or into home files
they are records of transactions that you have made
26.Bank reconciliations - ANSWER verify bank account debits and credits are
accurate
27.Credit management - ANSWER calculate the amount of debt for an
individual and create a plan to payoff debt
Exam Study Questions with Accurate
Answers | Guarantee Pass!
1. How to create wealth - ANSWER · spend less than you make then save or
invest the difference
2. Income targets - ANSWER Make financial strategies, find values and set
goals
3. Net worth - ANSWER · The difference between the value of your assets
and liabilities
4. Cash flow statement - ANSWER Basic statement of transactions
5. Wealth management - ANSWER analyze the effectiveness of wealth
management strategies to ensure financial goals are met
6. Diversification - ANSWER use a strategy which entails not putting all your
eggs in one bowl
7. Bull market - ANSWER a year when stocks increase over 20% or more
8. Bear market - ANSWER a year when stocks decrease under 20% or more
,9. Income versus capital gains - ANSWER income is taxed at 15% while
capital gains is taxed at 10 to 15%
10.Tax exempt incomes - ANSWER municipal bonds, retirement bonds, IRA
accounts if not touched for 5 years
11.Key to success in the stock market - ANSWER stay patient and wait for
returns do not panic!!
12.Renting vs Buying real estate - ANSWER renting in cheaper in the short
term while buying becomes cheaper in the long run by the taxes that take
place
13.Downfall of buying - ANSWER buying a house takes up atleast more than
30% of income
14.Home buying fees - ANSWER there are about 10,000$ in fees when buying
a house
15.Points - ANSWER fees that are prepaid interest they can reduce APR and
help make buying a house cheaper
16.Market volatility - ANSWER the change in price of a stock over a specific
time based off of the most recent price
17.Low volatility vs High volatility - ANSWER · low volatility is emotionally
sound while high makes investors un sound because of the fluctuation of
price
, 18.Investing vs trading - ANSWER Investing is long term while trading in
cvery short term, when an investor starts to pick up knowledge from trading
they tend to bail and fail
19.Buy low - ANSWER sell high
20.Market efficiency - ANSWER the speed in which new information is
reflected in investment prices
21.Active analyst - ANSWER do research on information surrounding a
company to anticipate what is going to happen and stay in front of the game
22.Media - ANSWER always to be ignored as they make a story that is
sensational NOT TO HELP YOUR INVESTMENT
23.Credit report - ANSWER free, a report on the history of your ability to pay
your debts available to all credit providers
24.Credit Cards - ANSWER when used correctly can help grow credit score
when used unproperly they can send you into debt
25.Financial records - ANSWER put into a safe deposit box or into home files
they are records of transactions that you have made
26.Bank reconciliations - ANSWER verify bank account debits and credits are
accurate
27.Credit management - ANSWER calculate the amount of debt for an
individual and create a plan to payoff debt
