WISE FINANCIAL LITERACY TEST

If you have a whole life insurance policy with a cash surrender value, and you surrender the policy, what will you receive? - Answer- a calculated amount of money which includes part of the premiums paid as well as the interest on that money (because they're not going to give you the whole amount back) What is capital gain? - Answer- Income on stocks What is a bull/bear market? - Answer- A bull market is a promising market (bull attacks up) A bear market is a market that isn't doing well (bear attacks down) What is an exemption? - Answer- the amounts of money you get taken away from taxes for having dependents Annual deductible - Answer- What you have to pay in the beginning of the year before insurance kicks in Managed Health Care Plan - Answer- -you have to go to your primary care physician who determines whether you should see a specialist -co-pays at the primary care physician What is the only type of life insurance without a cash value? - Answer- Term When you reinvest dividends, what does that go towards buying? - Answer- More of the same stock What is the largest equities market in the world? - Answer- New York Stock Exchange (NYSE) Mutual Funds - Answer- an investment that holds a wide range of different investment instruments, providing diversification Money Market - Answer- safe, bank offering Growth stocks - Answer- new companies that are trying to grow (you want to invest in them) Credit reports - Answer- you can receive one free one every year from each of the three companies Bonds - Answer- inverse relationship with interest (one goes up, other goes down)