W!SE Practice Test 4 - Difficult

Front

What is a checking account?

Back

A checking account is a type of bank account that allows for numerous withdrawals and deposits, and typically provides a debit card for easy access to funds.

Front

Do all checking accounts pay interest?

Back

No, some types of checking accounts pay interest, while others do not.

Front

What is the purpose of budgeting for tuition payments?

Back

Budgeting for tuition payments helps individuals save money over time to ensure they have enough funds available when the payment is due.

Front

What is the maximum liability for unauthorized credit card purchases if reported promptly?

Back

The maximum liability is $50 if the cardholder reports the theft within a reasonable time.

Front

What should be prioritized for insurance coverage?

Back

Prioritize insuring against losses resulting from an illness, accident, or disability.

Front

What is a Series EE savings bond?

Back

A Series EE savings bond is a government-backed savings product that earns interest and is redeemable for its face value at maturity.

Front

How much did Lucy's grandparents pay for her Series EE savings bond?

Back

Lucy's grandparents paid $500 for the bond.

Front

What is the importance of having insurance?

Back

Insurance provides financial protection against unexpected events, helping to cover costs related to health, property, and liability.

Front

What is the difference between a debit card and a credit card?

Back

A debit card withdraws money directly from a checking account, while a credit card allows borrowing up to a certain limit to be paid back later.

Front

What is the purpose of a budget?

Back

A budget is a financial plan that helps individuals track income and expenses to manage their money effectively.