WISE PRACTICE TEST- COMPLETE STUDY
GUIDE QUESTIONS AND ANSWERS 2023 NEW
UPDATE
If you have caused an accident, which type of automobile insurance would cover
damage to your own car? - Ans - Collision
Matt and Eric are young men. Each has a good credit history. They work at the same
company and make approximately the same salary. Matt has borrowed $6,000 to
take a foreign vacation. Eric has borrowed $6,000 to buy a car. Who is likely to pay
the lowest finance charge? - Ans - Eric will pay less because the car is collateral for
the loan.
If you went to college and earned a 4-year degree, how much money could you
expect to earn than if you only had a high school diploma? - Ans - a lot more; about
70% more.
Many savings programs are protected by the Federal government against loss.
Which of the following is not? - Ans - A bond issue by one of the 50 states
If each of the following persons had the same amount of take home pay, who would
need the greatest amount of life insurance? - Ans - A young single woman with two
young children.
Which of the following instruments in NOT typically associated with spending? - Ans
- Certificate of deposit
Which of the following credit card users is likely to pay the GREATEST dollar amount
in finance charges per year, if they all charge the same amount per year on their
cards? - Ans - Jessica, who only pays the minimum amount each month.
Which of the following statements is true? - Ans - Banks and other lenders share the
credit history of their borrowers with each other and are likely to know of any loan
payments that you have missed.
Doug must borrow $12,000 to complete his college education. Which of the following
would NOT be likely to reduce the finance charge rate? - Ans - If he went to a state
college rather than a private college.
If you had a savings account at a bank, which of the following would be correct
concerning the interest that you would earn on this account? - Ans - Income tax may
be charged on the interest if your income is high enough
Inflation can cause difficulty in many ways. Which group would have the greatest
problem during periods of high inflation that last several years? - Ans - Older people
living on fixed retirement income.
