WISE Test Questions & Answers 100%
Verified
What action should a person take who must make a tuition payment at the end of August each
year? Correct Ans-Decide how much money will be needed and then place 1/12th of that
amount in a separate account each month.
Predatory lending practices generally include: Correct Ans-Very high interest and fees
Why does a corporation issue bonds? Correct Ans-To raise money for expansion or other
company operations
The best suggestion you gave a friend who is writing a check for the first time is: Correct Ans-
Date the check because it usually proof of payment
A type of electronic funds transfer (EFT) is: Correct Ans-An ATM transaction
You are behind on your debt payments and go to a responsible credit counseling service, the
Consumer Credit Counseling Services. How can they help you? Correct Ans-They can work
with those who loaned you money to set up a repayment schedule you can afford to make.
,Dawn graduated from high school and wants to get a credit card. How can Dawn establish
credit-worthiness? Correct Ans-Opening a checking account, making regular deposits, and
avoiding penalties for insufficient funds.
To make sure you will always remember your automated teller machine (ATM) card person
identification number (PIN), you should write the PIN and keep it: Correct Ans-In a secure
place at home
The National Creedit Union Administration (NCUA) insures accounts in: Correct Ans-Credit
unions
When a borrower fails to repay a loan and there is a co-signer on the loan, the most likely result
will be: Correct Ans-The co-signer will be held responsible for the repayment of the entire
loan plus fees or penalties.
Which of the following lenders charge the highest interest rate? Correct Ans-Pawn shop
Matthew and Aliciia just had a baby. They received money as baby gifts and want to put it away
for the baby's college tuition. Which of the following has the lowest potential growth rate over
the next 18 years? Correct Ans-Savings accounts
Doug wants to buy a car in two months, but does not have enough money. What is the best way
for Doug to get the money he needs? Correct Ans-Take out a cash loan
, "The Fed" is short for: Correct Ans-The Federal Reserve System
A person buys a homeowner's insurance policy with a $250 deductible, which means the person
will: Correct Ans-Have to pay the first $250 which will be deducted from the claim
settlement paid by the insurance company.
Gwen recieves a bill from her atuo insurance company, and she sends a check to the company
to make sure her policy is not cancalled. The cost of her policy is called the: Correct Ans-
Premium
Erika and Mark recieved an inheritance of $100,000. They plan to invest their inheritance
money to buy a house in six years. Which of the following carries the greatest risk? Correct
Ans-Common Bonds
Pat has a savings account and a car loan from a not-for-profit financial institution owned by its
members. She is probably a member of what type of financial institution? Correct Ans-Credit
union
Claire got a new credit card from American Bank and wants to cancle her USA credit card. The
best method is to dispose of her USA credit card is to: Correct Ans-Cut up the card, put parts
in different garbage bags, and instruct the credit card company in writing or by phone to close
the account
Verified
What action should a person take who must make a tuition payment at the end of August each
year? Correct Ans-Decide how much money will be needed and then place 1/12th of that
amount in a separate account each month.
Predatory lending practices generally include: Correct Ans-Very high interest and fees
Why does a corporation issue bonds? Correct Ans-To raise money for expansion or other
company operations
The best suggestion you gave a friend who is writing a check for the first time is: Correct Ans-
Date the check because it usually proof of payment
A type of electronic funds transfer (EFT) is: Correct Ans-An ATM transaction
You are behind on your debt payments and go to a responsible credit counseling service, the
Consumer Credit Counseling Services. How can they help you? Correct Ans-They can work
with those who loaned you money to set up a repayment schedule you can afford to make.
,Dawn graduated from high school and wants to get a credit card. How can Dawn establish
credit-worthiness? Correct Ans-Opening a checking account, making regular deposits, and
avoiding penalties for insufficient funds.
To make sure you will always remember your automated teller machine (ATM) card person
identification number (PIN), you should write the PIN and keep it: Correct Ans-In a secure
place at home
The National Creedit Union Administration (NCUA) insures accounts in: Correct Ans-Credit
unions
When a borrower fails to repay a loan and there is a co-signer on the loan, the most likely result
will be: Correct Ans-The co-signer will be held responsible for the repayment of the entire
loan plus fees or penalties.
Which of the following lenders charge the highest interest rate? Correct Ans-Pawn shop
Matthew and Aliciia just had a baby. They received money as baby gifts and want to put it away
for the baby's college tuition. Which of the following has the lowest potential growth rate over
the next 18 years? Correct Ans-Savings accounts
Doug wants to buy a car in two months, but does not have enough money. What is the best way
for Doug to get the money he needs? Correct Ans-Take out a cash loan
, "The Fed" is short for: Correct Ans-The Federal Reserve System
A person buys a homeowner's insurance policy with a $250 deductible, which means the person
will: Correct Ans-Have to pay the first $250 which will be deducted from the claim
settlement paid by the insurance company.
Gwen recieves a bill from her atuo insurance company, and she sends a check to the company
to make sure her policy is not cancalled. The cost of her policy is called the: Correct Ans-
Premium
Erika and Mark recieved an inheritance of $100,000. They plan to invest their inheritance
money to buy a house in six years. Which of the following carries the greatest risk? Correct
Ans-Common Bonds
Pat has a savings account and a car loan from a not-for-profit financial institution owned by its
members. She is probably a member of what type of financial institution? Correct Ans-Credit
union
Claire got a new credit card from American Bank and wants to cancle her USA credit card. The
best method is to dispose of her USA credit card is to: Correct Ans-Cut up the card, put parts
in different garbage bags, and instruct the credit card company in writing or by phone to close
the account
