WISE Review Multiple Choice Questions || Questions and Answers.
A bank Certificate of Deposit is a:
A Savings instrument that requires a deposit for a period of time during which the saver can
withdraw money from the plan at any time without a penalty
B Savings instrument that requires a deposit for a period of time during which there is a penalty
for withdrawals
C Cash deposit in a savings account that earns interest
D Certificate for deposits that are issued for half the face value Correct Answer: B
Banks use savings account deposits to:
A Make their services and products attractive for new depositors
B Pay for employee special projects
C Give loans to consumers and businesses
D Improve the quality of life in low-income communities Correct Answer: C
The BEST reason for depositing money in a bank or credit union savings account instead of
keeping your money "under the mattress" is that:
A Money deposited in savings accounts are F.D.I.C. insured
B Most savings accounts earn a guaranteed rate of interest
C Most savings accounts come with a free credit card
D Money in a savings account can be accessed any time during the day or night Correct Answer:
A
A person has three credit cards with very large outstanding balances and is unable to make
payments on any of them. Which action should the person take?
A Notify a credit reporting agency in order to avoid a late fee.
B File for bankruptcy in order to maintain ones current credit score.
, C Notify the credit card companies in order to negotiate a new payment plan.
D Contact the Internal Revenue Service in order to avoid paying income tax this year. Correct
Answer: C
When a person declares bankruptcy that fact will appear on the person's credit report
A for a 3 year period.
B for a 10 year period.
C until the person repays all debts owed.
D until the person is able to receive a new credit card. Correct Answer: B
Which of the following is considered to be open-end (revolving) credit?
Answer A A mortgage.
Answer B A car loan.
Answer C Department store credit cards.
Answer D Installment loans. Correct Answer: C
What is meant by an uncollateralized loan?
A A loan not backed by a co-signer who agrees to cover the amount of the loan.
B A personal loan without assets to cover the loan amount.
C A home equity loan.
D A loan taken on a life insurance policy. Correct Answer: B
When a person brings an item to a pawnshop to obtain cash, the transaction is considered
Answer A: a collateralized loan.
Answer B: a custodial payment.
Answer C: an unsecured loan.
Answer D: a sales agreement. Correct Answer: A
A bank Certificate of Deposit is a:
A Savings instrument that requires a deposit for a period of time during which the saver can
withdraw money from the plan at any time without a penalty
B Savings instrument that requires a deposit for a period of time during which there is a penalty
for withdrawals
C Cash deposit in a savings account that earns interest
D Certificate for deposits that are issued for half the face value Correct Answer: B
Banks use savings account deposits to:
A Make their services and products attractive for new depositors
B Pay for employee special projects
C Give loans to consumers and businesses
D Improve the quality of life in low-income communities Correct Answer: C
The BEST reason for depositing money in a bank or credit union savings account instead of
keeping your money "under the mattress" is that:
A Money deposited in savings accounts are F.D.I.C. insured
B Most savings accounts earn a guaranteed rate of interest
C Most savings accounts come with a free credit card
D Money in a savings account can be accessed any time during the day or night Correct Answer:
A
A person has three credit cards with very large outstanding balances and is unable to make
payments on any of them. Which action should the person take?
A Notify a credit reporting agency in order to avoid a late fee.
B File for bankruptcy in order to maintain ones current credit score.
, C Notify the credit card companies in order to negotiate a new payment plan.
D Contact the Internal Revenue Service in order to avoid paying income tax this year. Correct
Answer: C
When a person declares bankruptcy that fact will appear on the person's credit report
A for a 3 year period.
B for a 10 year period.
C until the person repays all debts owed.
D until the person is able to receive a new credit card. Correct Answer: B
Which of the following is considered to be open-end (revolving) credit?
Answer A A mortgage.
Answer B A car loan.
Answer C Department store credit cards.
Answer D Installment loans. Correct Answer: C
What is meant by an uncollateralized loan?
A A loan not backed by a co-signer who agrees to cover the amount of the loan.
B A personal loan without assets to cover the loan amount.
C A home equity loan.
D A loan taken on a life insurance policy. Correct Answer: B
When a person brings an item to a pawnshop to obtain cash, the transaction is considered
Answer A: a collateralized loan.
Answer B: a custodial payment.
Answer C: an unsecured loan.
Answer D: a sales agreement. Correct Answer: A
