WISE EXAM STUDY GUIDE 2026 QUESTIONS
WITH SOLUTIONS GRADED A+
◍ Capacity. Answer: your ability to repay the debt. Do you have
sufficient $money to repay a loan
◍ Capital. Answer: "net worth". wealth in the form of money or
property owned by a person
◍ Character. Answer: good reputation, Integrity
◍ Credit history. Answer: a summary of a person's borrowing and
repayment history
◍ 50 dollars. Answer: In the event that your credit card is stolen in
the United States, federal law limits the liability of card holders to
____ regardless of the amount charged on the card by the
unauthorized user.
◍ zero liability "Owes nothing". Answer: if just the credit card
account number itself is stolen, federal law guarantees that the card
holder has a___________to the issuer.
◍ EFT. Answer: electronic funds transfer; exchange of money by
sending bank records via a computer network
,◍ FDIC. Answer: the federal government protects your money up to
$250,000 in a single account
◍ Department store charge cards.. Answer: Which of the following is
considered to be open-end credit?
◍ Notify the credit card companies. Answer: 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
◍ 10 years. Answer: When a person declares bankruptcy that fact will
appear on the person?s credit report
◍ A personal loan without assets to cover the loan amount. Answer:
What is meant by an uncollateralized loan?
◍ a collateralized loan. Answer: When a person brings an item to a
pawnshop to obtain cash, the transaction is considered
◍ Monetary policy. Answer: Which of the following does the Federal
Reserve use to regulate the nation's money supply?
◍ Salaries, wages, and tips. Answer: The primary sources of income
for most people between the ages of 20 and 35 who are not living on a
pension or social security are:
, ◍ better off financially the person is.. Answer: A person's debt ratio
shows the relationship between debt and net worth. The lower the
ratio the
◍ Exercise Tax. Answer: A person complains about how expensive it
is to be a cigarette smoker. One of the reasons cigarettes are so
expensive is that
◍ budget variance. Answer: the difference between the budgeted
amount and the actual amount that you spend
◍ budget variance. Answer: A man budgeted $200 a month for
clothing. This month the man spent $150 on clothing therefore that
budget item is considered to have
◍ capital gains on the investment will be taxed at a lower rate..
Answer: One of the benefits of holding an investment for over a year
rather than selling it in less than a year is that the
◍ Federal Reserve System. Answer: New coins and currency make
their way into the general economy, consumers and businesses,
through the distribution system of the:
◍ A: tax and penalty free.. Answer: After five years of owning a Roth
Individual Retirement Account (IRA), a person wants to buy his first
home, the person can withdraw money from the Roth IRA
WITH SOLUTIONS GRADED A+
◍ Capacity. Answer: your ability to repay the debt. Do you have
sufficient $money to repay a loan
◍ Capital. Answer: "net worth". wealth in the form of money or
property owned by a person
◍ Character. Answer: good reputation, Integrity
◍ Credit history. Answer: a summary of a person's borrowing and
repayment history
◍ 50 dollars. Answer: In the event that your credit card is stolen in
the United States, federal law limits the liability of card holders to
____ regardless of the amount charged on the card by the
unauthorized user.
◍ zero liability "Owes nothing". Answer: if just the credit card
account number itself is stolen, federal law guarantees that the card
holder has a___________to the issuer.
◍ EFT. Answer: electronic funds transfer; exchange of money by
sending bank records via a computer network
,◍ FDIC. Answer: the federal government protects your money up to
$250,000 in a single account
◍ Department store charge cards.. Answer: Which of the following is
considered to be open-end credit?
◍ Notify the credit card companies. Answer: 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
◍ 10 years. Answer: When a person declares bankruptcy that fact will
appear on the person?s credit report
◍ A personal loan without assets to cover the loan amount. Answer:
What is meant by an uncollateralized loan?
◍ a collateralized loan. Answer: When a person brings an item to a
pawnshop to obtain cash, the transaction is considered
◍ Monetary policy. Answer: Which of the following does the Federal
Reserve use to regulate the nation's money supply?
◍ Salaries, wages, and tips. Answer: The primary sources of income
for most people between the ages of 20 and 35 who are not living on a
pension or social security are:
, ◍ better off financially the person is.. Answer: A person's debt ratio
shows the relationship between debt and net worth. The lower the
ratio the
◍ Exercise Tax. Answer: A person complains about how expensive it
is to be a cigarette smoker. One of the reasons cigarettes are so
expensive is that
◍ budget variance. Answer: the difference between the budgeted
amount and the actual amount that you spend
◍ budget variance. Answer: A man budgeted $200 a month for
clothing. This month the man spent $150 on clothing therefore that
budget item is considered to have
◍ capital gains on the investment will be taxed at a lower rate..
Answer: One of the benefits of holding an investment for over a year
rather than selling it in less than a year is that the
◍ Federal Reserve System. Answer: New coins and currency make
their way into the general economy, consumers and businesses,
through the distribution system of the:
◍ A: tax and penalty free.. Answer: After five years of owning a Roth
Individual Retirement Account (IRA), a person wants to buy his first
home, the person can withdraw money from the Roth IRA
