Personal Finance WISE Test questions &
Answers
To determine the time value of depositing $100 in a savings account, a person needs to know
the interest rate and: Correct Ans-The rate of inflation
Which of the following is the federal law that requires the cost of credit be disclosed to
consumers in bold print on loan agreement? Correct Ans-Truth in Lending Act
Who benefits the most from inflation? Correct Ans-Long-term fixed rate borrowers
Why might rising interest rates depress stock prices: Correct Ans-Rising interest rates can
result in lower business profits
The information that a lender must disclose to consumers applying for a cash loan is: Correct
Ans-The annual percentage rate (APR) and/or the finance charge
A person buys a flat screen, plasma, theater like television. The person has homeowner's
insurance. Why would it be appropriate to add a personal property floater to that insurance?
Correct Ans-To cover the cost of replacement should the television get damaged or stolen
, A women has just received a very expensive piece of jewelry. The woman has homeowner's
insurance. Which statement would it be most appropriate: Correct Ans-"I think I need a
personal property floater"
For the past five years, a person has had a $20,000 whole life insurance policy that has a cash
value clause. The person decides to surrender the policy. At the time of surrender, the person
will receive Correct Ans-A calculated amount of money which includes the premiums paid as
well as the interest on that money
Debbie owns a clothing store. She is concerned that a customer who is injured in the store will
sue. Which type of insurance should Debbie purchase? Correct Ans-Liability insurance
Lucy has no insurance. The situation(s) should she consider insuring against first are: Correct
Ans-Losses resulting from an illness, accident, or disability
When a person declares bankruptcy that fact will appear on the person's credit report for years
Correct Ans-10 years
Most of the adverse information on a credit report appears for years Correct Ans-7 years
A high school student has begun to investigate the field of finance as a career choice. In
deciding about the field, what question does the student focus on first? Correct Ans-Will I
find a balance between financial rewards and personal satisfaction?
Answers
To determine the time value of depositing $100 in a savings account, a person needs to know
the interest rate and: Correct Ans-The rate of inflation
Which of the following is the federal law that requires the cost of credit be disclosed to
consumers in bold print on loan agreement? Correct Ans-Truth in Lending Act
Who benefits the most from inflation? Correct Ans-Long-term fixed rate borrowers
Why might rising interest rates depress stock prices: Correct Ans-Rising interest rates can
result in lower business profits
The information that a lender must disclose to consumers applying for a cash loan is: Correct
Ans-The annual percentage rate (APR) and/or the finance charge
A person buys a flat screen, plasma, theater like television. The person has homeowner's
insurance. Why would it be appropriate to add a personal property floater to that insurance?
Correct Ans-To cover the cost of replacement should the television get damaged or stolen
, A women has just received a very expensive piece of jewelry. The woman has homeowner's
insurance. Which statement would it be most appropriate: Correct Ans-"I think I need a
personal property floater"
For the past five years, a person has had a $20,000 whole life insurance policy that has a cash
value clause. The person decides to surrender the policy. At the time of surrender, the person
will receive Correct Ans-A calculated amount of money which includes the premiums paid as
well as the interest on that money
Debbie owns a clothing store. She is concerned that a customer who is injured in the store will
sue. Which type of insurance should Debbie purchase? Correct Ans-Liability insurance
Lucy has no insurance. The situation(s) should she consider insuring against first are: Correct
Ans-Losses resulting from an illness, accident, or disability
When a person declares bankruptcy that fact will appear on the person's credit report for years
Correct Ans-10 years
Most of the adverse information on a credit report appears for years Correct Ans-7 years
A high school student has begun to investigate the field of finance as a career choice. In
deciding about the field, what question does the student focus on first? Correct Ans-Will I
find a balance between financial rewards and personal satisfaction?
