Wise Practice Exam Answers Graded A+

Wise Practice Exam Answers If you have caused an accident, which type of automobile insurance would cover damage to your own car? - Answer-Collision Matt and Eric are young men. Each has a good credit history. They work at the same company and make approximately the same salary. Matt has borrowed $6,000 to take a foreign vacation. Eric has borrowed $6,000 to buy a car. Who is likely to pay the lowest finance charge? - Answer-Eric will pay less because the car is collateral for the loan. If you went to college and earned a 4-year degree, how much money could you expect to earn than if you only had a high school diploma? - Answer-a lot more; about 70% more. Many savings programs are protected by the Federal government against loss. Which of the following is not? - Answer-A bond issue by one of the 50 states If each of the following persons had the same amount of take home pay, who would need the greatest amount of life insurance? - Answer-A young single woman with two young children. Which of the following instruments in NOT typically associated with spending? - Answer-Certificate of deposit Which of the following credit card users is likely to pay the GREATEST dollar amount in finance charges per year, if they all charge the same amount per year on their cards? - Answer-Jessica, who only pays the minimum amount each month. Which of the following statements is true? - Answer-Banks and other lenders share the credit history of their borrowers with each other and are likely to know of any loan payments that you have missed. Doug must borrow $12,000 to complete his college education. Which of the following would NOT be likely to reduce the finance charge rate? - Answer-If he went to a state college rather than a private college. If you had a savings account at a bank, which of the following would be correct concerning the interest that you would earn on this account? - Answer-Income tax may be charged on the interest if your income is high enough Inflation can cause difficulty in many ways. Which group would have the greatest problem during periods of high inflation that last several years? - Answer-Older people living on fixed retirement income. Which of the following is true about sales taxes? - Answer-It makes things more expensive for you to buy. Lindsay has save $12,000 for her college expenses by working part-time. Her plan is to start college next year and she needs all of the money she saved. Which of the following is the safest place for her college money? - Answer-A bank savings account Which of the following types of investment would best protect the purchasing powe