WISE Certification Study Guide with
Complete Solutions
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
Advantage of buying stocks that pay dividends. - ANSWER-Dividends can be paid on a
regular basis.
An example of a long-term investment is: - ANSWER-Investing in mutual funds
As it relates to a budget, what is a surplus? - ANSWER-Money that is left over once all
expenses are budgeted.
Bear market - ANSWER-Extended period of uncertainty and pessimism when stock
prices fall.
Bull market - ANSWER-Extended period of consumer confidence and optimism when
stock prices rise.
How can a person build wealth for the future? - ANSWER-Put money into savings and
invest money
If a corporation was sued and lost a major lawsuit, what will happen to the price of their
stock? - ANSWER-Price of stock increases
If a fire happens to someone's house, what type of insurance will pay for the damage
most likely? - ANSWER-Home insurance
If a person starts investing money at the age of 27 at 3% of $40,000, and another
person starts investing at the age of 50 at 3% of $55,000, who will have more money at
the age of 70 assuming that the money is compounded? - ANSWER-The person who
started investing at the age of 27 (?)
-
Money invested at 25 versus money invested at 50.
-
Invested money has longer period of time to compound and benefit from investment
gains.
If a person's hospital bill is $10,000 and the health insurance company pays $9,000,
what is the remaining balance of $1,000 called? - ANSWER-Deductible
Complete Solutions
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
Advantage of buying stocks that pay dividends. - ANSWER-Dividends can be paid on a
regular basis.
An example of a long-term investment is: - ANSWER-Investing in mutual funds
As it relates to a budget, what is a surplus? - ANSWER-Money that is left over once all
expenses are budgeted.
Bear market - ANSWER-Extended period of uncertainty and pessimism when stock
prices fall.
Bull market - ANSWER-Extended period of consumer confidence and optimism when
stock prices rise.
How can a person build wealth for the future? - ANSWER-Put money into savings and
invest money
If a corporation was sued and lost a major lawsuit, what will happen to the price of their
stock? - ANSWER-Price of stock increases
If a fire happens to someone's house, what type of insurance will pay for the damage
most likely? - ANSWER-Home insurance
If a person starts investing money at the age of 27 at 3% of $40,000, and another
person starts investing at the age of 50 at 3% of $55,000, who will have more money at
the age of 70 assuming that the money is compounded? - ANSWER-The person who
started investing at the age of 27 (?)
-
Money invested at 25 versus money invested at 50.
-
Invested money has longer period of time to compound and benefit from investment
gains.
If a person's hospital bill is $10,000 and the health insurance company pays $9,000,
what is the remaining balance of $1,000 called? - ANSWER-Deductible
