W!SE Pre-test

Front

A deposit of $1,000 into a savings account paying 4% interest is estimated to double in 18 years is an example of

Back

The Rule of 72

Front

An ATM fee may be charged if a withdrawal is made from an ATM located at a local gas station but not owned by your bank.

Back

located at a local gas station but not owned by your bank

Front

A homeowner's mortgage payments are based on the amount borrowed, the length of the time, and the

Back

interest rate on the loan

Front

Mary lives in a high crime area where there's a high level of break-ins. Tamara lives in an area where break-ins are very rare. Based only on this information, Mary's homeowner's insurance is likely to be

Back

higher than Tamara's

Front

Which of the following is a variable expense? rent, car payment, grocery bill, loan payment

Back

grocery bill

Front

A person's credit history is important because it is used by lenders to determine whether or not to approve credit.

Back

lenders to determine whether or not to approve credit

Front

Your car breaks down and you need to get it repaired in order to go to work. Which answer is the best choice to use to repair your car? Options: take your mother's jewelry to the pawn shop to get money, sell share of stocks, use money you've saved for emergencies, take out a payday loan

Back

use money you've saved for emergencies

Front

A good reason to have a credit card is that it

Back

is safer than carrying cash

Front

You should avoid a tax refund loan because

Back

they charge extremely high fees

Front

You have a $500 deductible on your dental insurance. You need a root canal and the dentist says that the bill will be $750. How much will you and the insurance company pay?

Back

The insurance will pay $250 and you will pay $500.