WISE Test Review

Front

Morgan sets the following goal: Save $4,000 to buy a car. What is the problem with this goal?

Back

It does not have a time frame; without a time-frame, she can't plan how to achieve the $4,000 goal because she could take 2 years, 10 years, or more to save the $4,000.

Front

Saving for college, buying a home, and retirement are all

Back

Long term goal

Front

When should you set aside money for savings?

Back

You should set aside money for savings before you pay your other bills and expenses; PAY YOURSELF FIRST.

Front

How much should you have saved up in an Emergency Fund? Options: One month's pay, 3 - 6 months of expenses, 2 months worth of rent or mortgage, 3 months worth of what you normally budget for groceries

Back

3 - 6 months of expenses

Front

Which of the following is a FIXED expense? Groceries, Dining out, Clothing, Car Insurance

Back

Car Insurance

Front

What are the usual long-term consequences of continually having budget deficits?

Back

You are likely depleting (burning through) your savings, putting purchases on credit, or both.

Front

In order for a bank or credit union to make money, it has to: collect more in interest and other finance charges on loans than it pays out in interest on deposits it receives.

Back

collect more in interest and other finance charges on loans than it pays out in interest on deposits it receives.

Front

The FDIC insures customer deposits for what maximum amount if the bank becomes insolvent?

Back

$250,000

Front

When writing a check, you are NOT required to write what the check is being used for.

Back

write what the check is being used for.

Front

You should review the transactions on your account either online or on your printed bank statement to

Back

ensure you have not become a victim of identity theft.