W!SE Practice Test 3

Front

What provides an increase in assets or wealth?

Back

having capital gains

Front

The denominations of coins in the US are:

Back

$0.01, $0.05, $0.10, $0.25, $0.50, and $1.00

Front

Mutual Funds are:

Back

an investment that holds a wide range of different investment instruments, providing diversification

Front

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

Back

the policy only pays a death benefit

Front

Disadvantage of using phone cards, debit cards, electronic transfer, and ATM cards?

Back

They expose consumers to greater likelihood of identity theft.

Front

The process of setting aside money and putting it to work by having it earn interest or dividends or gain value in the equities market with the idea of having additional funds to use in the future is described as:

Back

savings and investing

Front

Do checking accounts pay interest?

Back

Some types of checking accounts pay interest.

Front

The purpose of Insurance is NOT to:

• diversify an investment portfolio
• share risk with other policy holders and the insurance company
• protect assets
• protect against potential losses

Back

diversify an investment portfolio

Front

Generally, the higher the deductible on an insurance policy, the

Back

lower the premium

Front

What is a credit card finance charge?

Back

the dollar amount it costs to use credit