WISE Financial Literacy Certification Term
Review Questions with Correct Answers|
New Update 100% Verified (Grade A+)
1. A person earned a salary of $70,000 last year.
Additionally, he had $1,000 in interest income and
$2,000 in dividend income. His total income for this
year is - ANSWER ✔ $73,000
2. An example of opportunity cost is - ANSWER ✔
buying concert tickets instead of buying a textbook for
a course
3. A person strongly feels that going into debt is wrong.
This is an example of the influence of - ANSWER ✔
values on decisions
,4. Which of the following describes what happens during
a depression? - ANSWER ✔ Unemployment is very
high.
5. The maximum amount of money a person can borrow is
called a credit - ANSWER ✔ line
6. Which of the following can help a person lower her
personal risk of loss? - ANSWER ✔ Insurance
7. If a car was damaged in a flood, which type of car
insurance would typically cover the damage to the car?
- ANSWER ✔ Comprehensive
8. How should a person decide how much coverage she
needs when selecting renters insurance? - ANSWER ✔
Determine the dollar value of personal property to be
covered by insurance
,9. Car insurance is more expensive for teenage males than
teenage females because studies have shown that -
ANSWER ✔ male teenagers have a greater number of
accidents than female teenagers
10. A person had an Apple computer that was destroyed
in a fire. She was able to buy a new Apple computer
because her insurance policy has the following benefit -
ANSWER ✔ replacement value
11. If a driver receives several traffic tickets, the cost of
the car insurance will probably - ANSWER ✔ increase
12. Money that a person pays to an insurance company
for a policy is called a - ANSWER ✔ premium
13. Before a person can receive money to cover the
damage from a car accident, he must - ANSWER ✔ file
a claim with his insurance company
, 14. What is the key word for insurance companies when
establishing the cost for a policy - ANSWER ✔ risk
15. Two types of life insurance policies are - ANSWER
✔ term and whole life(permanent)
16. When shopping for life insurance, the best strategy is
to - ANSWER ✔ figure out how much is needed, then
get prices from different companies.
17. The purpose of life insurance is to - ANSWER ✔
help meet the financial needs of dependents upon a
person's death
18. Which of the following financial products has the
highest risk? - ANSWER ✔ Stocks
19. One reason investors purchase stock is to - ANSWER
✔ increase wealth
Review Questions with Correct Answers|
New Update 100% Verified (Grade A+)
1. A person earned a salary of $70,000 last year.
Additionally, he had $1,000 in interest income and
$2,000 in dividend income. His total income for this
year is - ANSWER ✔ $73,000
2. An example of opportunity cost is - ANSWER ✔
buying concert tickets instead of buying a textbook for
a course
3. A person strongly feels that going into debt is wrong.
This is an example of the influence of - ANSWER ✔
values on decisions
,4. Which of the following describes what happens during
a depression? - ANSWER ✔ Unemployment is very
high.
5. The maximum amount of money a person can borrow is
called a credit - ANSWER ✔ line
6. Which of the following can help a person lower her
personal risk of loss? - ANSWER ✔ Insurance
7. If a car was damaged in a flood, which type of car
insurance would typically cover the damage to the car?
- ANSWER ✔ Comprehensive
8. How should a person decide how much coverage she
needs when selecting renters insurance? - ANSWER ✔
Determine the dollar value of personal property to be
covered by insurance
,9. Car insurance is more expensive for teenage males than
teenage females because studies have shown that -
ANSWER ✔ male teenagers have a greater number of
accidents than female teenagers
10. A person had an Apple computer that was destroyed
in a fire. She was able to buy a new Apple computer
because her insurance policy has the following benefit -
ANSWER ✔ replacement value
11. If a driver receives several traffic tickets, the cost of
the car insurance will probably - ANSWER ✔ increase
12. Money that a person pays to an insurance company
for a policy is called a - ANSWER ✔ premium
13. Before a person can receive money to cover the
damage from a car accident, he must - ANSWER ✔ file
a claim with his insurance company
, 14. What is the key word for insurance companies when
establishing the cost for a policy - ANSWER ✔ risk
15. Two types of life insurance policies are - ANSWER
✔ term and whole life(permanent)
16. When shopping for life insurance, the best strategy is
to - ANSWER ✔ figure out how much is needed, then
get prices from different companies.
17. The purpose of life insurance is to - ANSWER ✔
help meet the financial needs of dependents upon a
person's death
18. Which of the following financial products has the
highest risk? - ANSWER ✔ Stocks
19. One reason investors purchase stock is to - ANSWER
✔ increase wealth
