W!SE Practice Test 4 - Difficult

Front

What is a proxy in the context of stockholder meetings?

Back

A proxy is a person authorized to act on behalf of a stockholder, allowing them to vote on corporate matters without being physically present at the meeting.

Front

What is a Series EE savings bond?

Back

A Series EE savings bond is a U.S. government savings bond that is purchased at half its face value and earns interest over time, maturing to its full value after a specified period.

Front

What is the importance of budgeting for tuition payments?

Back

Budgeting for tuition payments helps individuals plan their finances by determining how much money is needed and saving a portion each month to meet that obligation.

Front

Why is term life insurance considered the least expensive type of life insurance?

Back

Term life insurance is the least expensive because it only provides a death benefit without any cash value accumulation or lifetime coverage.

Front

What are predatory lending practices?

Back

Predatory lending practices involve unfair, deceptive, or fraudulent tactics used by lenders to entice borrowers into loans they cannot afford.

Tags

CCSS.RL.5.6

Front

What is the difference between a certificate of deposit (CD) and a savings bond?

Back

A CD is a time deposit offered by banks with a fixed interest rate and maturity date, while a savings bond is a government-issued bond that can be purchased at a discount and matures to its full value.

Front

What does it mean to assign stock voting rights?

Back

Assigning stock voting rights means giving another person the authority to vote on your behalf regarding corporate decisions.

Front

What is the purpose of a short-term collateralized loan?

Back

A short-term collateralized loan is used to borrow money for a short period, secured by an asset, to meet immediate financial needs.

Front

What is the significance of interest rates in loans?

Back

Interest rates determine the cost of borrowing money; lower rates mean lower costs for borrowers, while higher rates increase the total repayment amount.

Tags

CCSS.7.RP.A.3

Front

What is the role of a financial institution in lending?

Back

Financial institutions assess borrowers' creditworthiness, provide loans, and set terms such as interest rates and repayment schedules.