Wise Practice Test #1

Front

What is the maximum amount of unauthorized purchase liability for a stolen credit card that Sage reports?

Back

$50

Front

Consumers who file for bankruptcy are still responsible for: Mortgage loans, Credit card balances, Car loans, Tax claims and student loans (unless undue hardship)

Back

Tax claims and student loans (unless undue hardship)

Front

Banks use savings account deposits to:

Back

give loans to consumers and businesses

Front

Why is term life insurance usually the least expensive type of life insurance? Options: The policy builds a cash value, The policy provides coverage for a lifetime, The policy is available to all consumers, The policy only pays a death benefit.

Back

The policy only pays a death benefit.

Front

Do checking accounts pay interest?

Back

Some types of checking accounts pay interest.

Front

What is a credit score?

Back

A number used to determine how much credit to extend to a person.

Front

A teenage boy has opened a checking account. He is surprised to find that though he is getting a written bank statement each month he is not getting his cancelled checks returned. The teenager should be aware that the reason cancelled checks are NOT returned is to

Back

save the bank money associated with returning copies of these checks.

Front

Which statement does NOT accurately describe a characteristic of cash value for whole life insurance? Options: Policy that accumulates cash value is less expensive than a policy that does not accumulate cash value., When an insured person dies, the beneficiary will receive the death benefit but the insurance company keeps the cash value., Cash value grows gradually over time., If the policy is cancelled, you may be entitled to some or all of the accrued cash value.

Back

Policy that accumulates cash value is less expensive than a policy that does not accumulate cash value.

Front

Which factor would most likely lead to an increase the interest rate on a person's credit card? Options: Number of purchases, Late payments, Total amount charged, Number of cash advances

Back

Late payments

Front

If a business wants to raise capital but not create debt, it can:

Back

Issue common stock