WISE PRACTICE TEST #1

Front

when money is DISCRETIONARY it means

Back

it's extra or disposable income you have after paying necessary bills like the electricity and mortgage/rent

Front

This word means - what is given up when a choice is made.

Back

opportunity cost

Front

You have $15,000 that you could either invest in Company XYZ stock or put toward a graduate degree. You choose the stock. The opportunity cost in this situation is

Back

the increased lifetime earnings that may have resulted from getting the graduate degree

Front

What is the opportunity cost of the new product design for a manufacturer of headphones facing stiff competition from low-cost products?

Back

increased cost and inability to compete on price

Front

Treasury Department is responsible for collecting taxes. True or False?

Back

True

Front

The Treasury Department is responsible for printing money. True or False?

Back

True

Front

The Treasury Department is responsible for insuring bank deposits. True or False.

Back

False

Front

Who is hurt the most and the least with inflation?

Back

Most hurt are lenders (banks) and people living on a fixed income. Lease hurt are those who owe large amounts of money.

Front

Higher rates of interest on loans will be charged at

Back

pawnshops, payday lenders, tax refund lenders

Front

What is overdraft protection?

Back

feature offered by banks that will take money from your savings account when you don't have enough in the checking account to pay for whatever it is you're paying for.