W!SE PRACTICE QUESTIONS

Front

If you have caused an accident, which type of automobile insurance would cover damage to your own car?

Back

Collision

Front

Matt and Eric are young men with good credit histories, working at the same company and earning similar salaries. Matt has borrowed $6,000 to buy a car. Who is likely to pay the lowest finance charge?

Back

Eric will pay less because the car is collateral for the loan.

Front

If you went to college and earned a 4-year degree, how much more money could you expect to earn than if you only had a high school diploma?

Back

A lot more; about 70% more

Front

Many savings programs are protected by the Federal government against loss. Which of the following is not? A bond issued by one of the 50 states, A U.S. Treasury Bond, A U.S. Savings Bond, A certificate of deposit at the bank

Back

A bond issued by one of the 50 states

Front

If each of the following persons had the same amount of take home pay, who would need the greatest amount of life insurance? A young single woman with two young children, A young single woman w/o children, An elderly retired man, with a wife who is also retired, A young married man w/o children

Back

A young single woman with two young children

Front

Which of the following instruments is NOT typically associated with spending? Cash, Credit card, Debit card, Certificate of deposit

Back

Certificate of deposit

Front

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?
Vera, who always pays off her credit card bill in full shortly after she receives it.
Jessica, who only pays the minimum amount each month.
Megan, who pays at least the minimum amount each month and more, when she has the money.
Erin, who generally pays off her credit card in full but, occasionally, will pay the minimum when she is short of cash.

Back

Jessica, who only pays the minimum amount each month.

Front

Which of the following statements is true?
Your bad loan payment record with one bank will not be considered if you apply to another bank for a loan.
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.
If you missed a payment more than 2 years ago, it cannot be considered in a loan decision.
People have so many loans it is very unlikely that one bank will know your history with another bank.

Back

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.

Front

Doug must borrow $12,000 to complete his college education. Which of the following would NOT be likely to reduce the finance charge rate? If his parents took out an additional mortgage on their house for the loan. If the loan was insured by the Federal Government. If he went to a state college rather than a private college. If his parents cosigned the loan.

Back

If he went to a state college rather than a private college.

Front

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? Sales tax may be charged on the interest that you earn. You cannot earn interest until you pass your 18th birthday. Earnings from savings account interest may not be taxed. Income tax may be charged on the interest if your income is high enough

Back

Income tax may be charged on the interest if your income is high enough