Wise Financial Literacy Exams Prep 2025 Test Graded A+, Exams of Finance

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Wise Financial Literacy Exams Prep 2025 Test Graded A+

current income and expeng Comparison shopping for a car is necessary because - A. ‘R-the price for the car can vary a great deal. Financial planners generally stress the importance of starting to save and invest early because - ANSWEF-of the power of compounding and appreciation. An important feature of a good financial goal is that the goal - ANSWER-has a specific time frame. Purchasing powor decreases and il costs more money Lo buy more good when there is an - ANSWER-inflalion. ‘Following a budget that allows for saving. A college student has to live ona tight budget. Before making a decision to buy the newest cell phone, which question should he ask himself firs FIs the new cell phone a need or want. Which of the following quotes is sound financial advice? - ANSWER-"A penny saved is a penny earned." Fixed expenses include - ANSWER rent. Mandatory deductions from a person's paycheck include - ANSWER-federal withholding tax and FICA. WER-As young as possible. Which of the following is the source of income for most people aged 20-35? - ANSWER Wages/salary The U.S. government agency responsible for the collection and enforcement of federal taxed ERULS. Intemal Revenue Service TRS) known as - A. When a person has a balanced budget thal includes savings thon - ANSWER-Lotal oxpenses + savings = total income Why do financial advisers recommend that a person save at least 10% of each paycheck? - The “time valuc of money" means thal - ANSWER-money received taday is worlh more than the same amount of money received in the future. When a person receives a book store gift card, she can use it to- ANSWEF-buy a book from that store Which of the following can help a person lower her personal risk of loss?- ANSWER-Insurance Ifa car was damaged in a flood, which type of car insurance would typically cover the damage to the car? - ANSWER-Comprehensive 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 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 A person had an Apple computer that was destroyed in a fire. She was able to buy a new Apple Ifa driver receives several traffic tickets, the cost of the car insurance will probably - ANSWER-incrcasc Money that a person pays Lo an insurance company for a policy is called a- A ER-premium Before a person can receive money to cover the damage from a car accident, he must - ANSWER. file a claim with his insurance company What is the key word for insurance companies when establishing the cost for a policy - ANSWER-+risk mand whole life(permanent) When shopping for life insurance, the best strategy is to - ANSWER figure out how much is needed, then get prices from different companies. The purpose of life insurance is to- ANSWEF-help meet the financial needs of dependents upon a person’s death Which of the following financial products has the highest risk? - ANSWER-Stocks Before a person begins investing, he should have - ANSWER-a meeting with a licensed financial planner/advisor The New York Stock Exchange(NYSE) can be described as a- ANSWER marketplace where stocks are bought and sald A person wants to invest in a low-risk investment product. Which of the following would be the best investment for her? - AN, ‘RUS Treasury bond The stock price of a corporation is most likely to increase when the corporation announces a- A method of reducing investment risk is known as - ANSWER-diversification Profit from the sale of stocks, bonds, or real estate is called - ANSWER capital gains