Wise Practice Test #10

Front

An ATM fee may be charged if a withdrawal is made from an ATM that is owned by a local fast food restaurant.

Back

That is owned by a local fast food restaurant

Front

A person has a health maintenance organization (HMO) insurance plan and is allowed to

Back

Choose a doctor from a list provided by the insurance company

Front

A strategy investors use to reduce risk is to: Invest in mutual funds instead of individual stocks, Buy speculative instead of blue chip stocks, Buy at least 100 shares of a company's stock, Invest in stock of new companies

Back

Invest in mutual funds instead of individual stocks

Front

A capital gain results when the investor

Back

Sells an investment for a higher price than the investor paid

Front

When applying for a loan, the higher a person's credit score/rating the

Back

Lower the interest rate will be for the loan

Front

What is the collateral for a car loan?

Back

The car

Front

A person might choose to become an entrepreneur because she wants to

Back

Introduce a new product or service

Front

A function of banks is to

Back

Provide loans to consumers

Front

How is a term life insurance policy different from a whole life insurance policy?

Back

The term life policy is only for a limited period of time

Front

A person has a financial wellbeing when the person

Back

Has assets worth more than her total liabilities