©BRIGHTSTARS EXAM SOLUTIONS
10/23/2024 11:19 PM
Wise Practice Test Exam Questions And
Answers 100% Pass
Budget variance. - answer✔the difference between the budgeted amount and the actual amount that
you spend
debt ratio - answer✔shows the relationship between debt and net worth.
debt ratio - answer✔The lower the ratio the better off financially the person is.
debt ratio - answer✔calculated by dividing liabilities by net worth
excise tax - answer✔government imposes a tax on specific goods and services such as alcohol,
cigarettes, gasoline, and airline
capital gains - answer✔are profits made from the sale of capital assets such as stocks and bonds
Capital gains - answer✔tax deferred until the asset is sold,
Capital Gains Tax - answer✔If held over one year are considered long-term capital gains and are taxed at
a lower tax rate or in some cases are not taxed at all.
variable expenses - answer✔change from one period to another,examples Electricity and food
expenditures
get advice from your friends - answer✔will help you the least in managing your money?
Financial planning - answer✔the process of developing and implementing a coordinated series of
actions to achieve financial success.
Financial planning - answer✔need to be reviewed and adjusted to accommodate changing needs and
goals.
emergency fund - answer✔Should be an important consideration when saving money
liquidity - answer✔being in cash or easily convertible to cash, How easily an asset can be converted into
cash
Social Security - answer✔benefits depends on the person?s earnings over a lifetime of work
, ©BRIGHTSTARS EXAM SOLUTIONS
10/23/2024 11:19 PM
Department store charge cards. - answer✔open-end credit
Department store charge cards. - answer✔is a revolving live of credit that is offered by banks There is a
limit set on the line of credit and the funds
mortgage loan - answer✔closed-end credit,made at a specified interest rate for a specified time period.
collateralized loan. - answer✔A loan that is secured by collateral, properties or assets that are subject to
seizure on default.
collateralized loan. - answer✔When a person brings an item to a pawnshop to obtain cash, the
transaction is considered
Federal Housing Administration (FHA) loan - answer✔insures lenders who make mortgage loans that are
riskier than regular bank loans because
uncollateralized loan - answer✔A personal loan without assets to cover the loan amount.
Collateral - answer✔tangible asset that is used to secure a loan. In the case of a mortgage, the actual
house or apartment serves as the collateral for that loan.
bankruptcy - answer✔will appear on the person?s credit report for 10 years
Notify the credit card companies in order to negotiate a new payment plan. - answer✔Notify the credit
card companies in order to negotiate a new payment plan.
Installment loan - answer✔a loan repaid with interest in equal periodic payments
dispose of a credit card - answer✔Cut up the card, put parts in different garbage bags, and instruct the
credit card company in writing or by phone to close the account
Garnishment - answer✔Occurs when a creditor obtains a court order requiring an employer to attach an
employee's earnings in order to pay back a debt.
rate of inflation - answer✔determines the time value of depositing into a savings account, and the
interest rate and
Rising interest - answer✔Can lower stock prices because of lower business profits
Short-term savings instruments - answer✔your money will be available to invest in a higher interest
instrument in the near future.
Short-term savings instruments - answer✔Which investment would you choose today if you believe
interest rates will go up?
Credit unions - answer✔Credit unions usually pay the highest rates of interest because they have lower
risks and costs of operation. They are not-for-profit organizations
10/23/2024 11:19 PM
Wise Practice Test Exam Questions And
Answers 100% Pass
Budget variance. - answer✔the difference between the budgeted amount and the actual amount that
you spend
debt ratio - answer✔shows the relationship between debt and net worth.
debt ratio - answer✔The lower the ratio the better off financially the person is.
debt ratio - answer✔calculated by dividing liabilities by net worth
excise tax - answer✔government imposes a tax on specific goods and services such as alcohol,
cigarettes, gasoline, and airline
capital gains - answer✔are profits made from the sale of capital assets such as stocks and bonds
Capital gains - answer✔tax deferred until the asset is sold,
Capital Gains Tax - answer✔If held over one year are considered long-term capital gains and are taxed at
a lower tax rate or in some cases are not taxed at all.
variable expenses - answer✔change from one period to another,examples Electricity and food
expenditures
get advice from your friends - answer✔will help you the least in managing your money?
Financial planning - answer✔the process of developing and implementing a coordinated series of
actions to achieve financial success.
Financial planning - answer✔need to be reviewed and adjusted to accommodate changing needs and
goals.
emergency fund - answer✔Should be an important consideration when saving money
liquidity - answer✔being in cash or easily convertible to cash, How easily an asset can be converted into
cash
Social Security - answer✔benefits depends on the person?s earnings over a lifetime of work
, ©BRIGHTSTARS EXAM SOLUTIONS
10/23/2024 11:19 PM
Department store charge cards. - answer✔open-end credit
Department store charge cards. - answer✔is a revolving live of credit that is offered by banks There is a
limit set on the line of credit and the funds
mortgage loan - answer✔closed-end credit,made at a specified interest rate for a specified time period.
collateralized loan. - answer✔A loan that is secured by collateral, properties or assets that are subject to
seizure on default.
collateralized loan. - answer✔When a person brings an item to a pawnshop to obtain cash, the
transaction is considered
Federal Housing Administration (FHA) loan - answer✔insures lenders who make mortgage loans that are
riskier than regular bank loans because
uncollateralized loan - answer✔A personal loan without assets to cover the loan amount.
Collateral - answer✔tangible asset that is used to secure a loan. In the case of a mortgage, the actual
house or apartment serves as the collateral for that loan.
bankruptcy - answer✔will appear on the person?s credit report for 10 years
Notify the credit card companies in order to negotiate a new payment plan. - answer✔Notify the credit
card companies in order to negotiate a new payment plan.
Installment loan - answer✔a loan repaid with interest in equal periodic payments
dispose of a credit card - answer✔Cut up the card, put parts in different garbage bags, and instruct the
credit card company in writing or by phone to close the account
Garnishment - answer✔Occurs when a creditor obtains a court order requiring an employer to attach an
employee's earnings in order to pay back a debt.
rate of inflation - answer✔determines the time value of depositing into a savings account, and the
interest rate and
Rising interest - answer✔Can lower stock prices because of lower business profits
Short-term savings instruments - answer✔your money will be available to invest in a higher interest
instrument in the near future.
Short-term savings instruments - answer✔Which investment would you choose today if you believe
interest rates will go up?
Credit unions - answer✔Credit unions usually pay the highest rates of interest because they have lower
risks and costs of operation. They are not-for-profit organizations
