wise practice test 2_2
If a person has to pay $35 a year on each $100 borrowed, the cost in interest is - CORRECT
ANSWER-high
When a person wins $5,000 in the lottery, the person will - CORRECT ANSWER-have to
report the $5,000 to the Internal Revenue Service (IRS) as income for that year.
Which budget category is correctly matched with its explanation? - CORRECT ANSWER-
Fixed expense: $120 monthly car insurance bill
The cost of car insurance is affected by the - CORRECT ANSWER-kind of car owned
Why would a person put a stop payment on a check? - CORRECT ANSWER-To prevent
anyone from cashing a check that was lost or stolen.
A person has a car loan with a 10% interest rate. The loan would cost the least amount of money
if it is paid back in - CORRECT ANSWER-3 years
A person finds an error when reviewing her credit report. What can she do? - CORRECT
ANSWER-Contact the credit reporting agency immediately about the error
Why does a corporation issue bonds to the public? - CORRECT ANSWER-it wants to borrow
money
Bankruptcy allows a person to erase all of the following debts EXCEPT for - CORRECT
ANSWER-credit card charges and installment loans
"According to the paragraph above, teenagers need to be financially literate because they are" -
CORRECT ANSWER-spending money
The line of credit on a person's credit card has been increased from $5,000 to $7,500. What does
the increase mean? - CORRECT ANSWER-The credit card owner can charge purchases up
to $7,500
A benefit of using a debit card is that it provides a way to - CORRECT ANSWER-limit the
amount of cash a person needs to carry
The US government uses a progressive/graduated income tax method. This means that the
income tax a person has to pay is based on the idea that the - CORRECT ANSWER-more the
person earns, the more the person pays
If a person has to pay $35 a year on each $100 borrowed, the cost in interest is - CORRECT
ANSWER-high
When a person wins $5,000 in the lottery, the person will - CORRECT ANSWER-have to
report the $5,000 to the Internal Revenue Service (IRS) as income for that year.
Which budget category is correctly matched with its explanation? - CORRECT ANSWER-
Fixed expense: $120 monthly car insurance bill
The cost of car insurance is affected by the - CORRECT ANSWER-kind of car owned
Why would a person put a stop payment on a check? - CORRECT ANSWER-To prevent
anyone from cashing a check that was lost or stolen.
A person has a car loan with a 10% interest rate. The loan would cost the least amount of money
if it is paid back in - CORRECT ANSWER-3 years
A person finds an error when reviewing her credit report. What can she do? - CORRECT
ANSWER-Contact the credit reporting agency immediately about the error
Why does a corporation issue bonds to the public? - CORRECT ANSWER-it wants to borrow
money
Bankruptcy allows a person to erase all of the following debts EXCEPT for - CORRECT
ANSWER-credit card charges and installment loans
"According to the paragraph above, teenagers need to be financially literate because they are" -
CORRECT ANSWER-spending money
The line of credit on a person's credit card has been increased from $5,000 to $7,500. What does
the increase mean? - CORRECT ANSWER-The credit card owner can charge purchases up
to $7,500
A benefit of using a debit card is that it provides a way to - CORRECT ANSWER-limit the
amount of cash a person needs to carry
The US government uses a progressive/graduated income tax method. This means that the
income tax a person has to pay is based on the idea that the - CORRECT ANSWER-more the
person earns, the more the person pays
