W!se Practice Test 2

Which of the following provides an increase in assets or wealth?

• Volunteering at a hospital

• Taking out a loan

• Having capital gains

• Running in the marathon

You have a checking account balance of $100 and you deposit a personal $200 check from your brother in your checking account. When will you be able to withdraw $150 in cash?

• The same day as the $200 deposit

• 3 to 7 days later, depending on your bank's check clearance policy

• After receiving a checking account statement at the end of the month

• On the day you make your next deposit

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

• The policy only pays a death benefit

• The policy builds a cash value

• The policy provides coverage for a lifetime

• The policy is available to all consumers

How can you avoid becoming a victim of identity theft?

• Avoid giving your Social Security number on a phone call you did not initiate

• Leave your wallet containing personal information where it can be stolen

• Keep your PIN on your ATM card

• Avoid using your credit card to charge purchases on the phone

The price of the Candy Corporation stock will generally increase when there is:

• Positive news about corporate earnings

• Investor confidence is declining

• Investors are bullish on the health sector

• Interest rates are rising

A credit card finance charge is:

• The sales tax

• The cost of the items purchased

• The dollar amount it cost to use credit

• A service fee

New coins and currency make their way into the general economy, consumers and businesses, through the distribution system of the:

• Treasurer of the United States

• Secretary of the Department of Treasury

• Federal Reserve System

• U.S. Federal Mint

Richard's auto insurance policy expired on 5/15/2017. Richard was upset with his insurance agent and decided to change insurance companies. At 10:00 a.m. on 5/16/2017, as he drove to a different agent to buy a new policy, he had an accident. Who is liable for damage to his car and his personal injuries?

• The old agent

• The new agent

• Richard

• The old agent is liable for damage to your car and the new agent for personal injuries

What is a credit score?

• A number used to determine how much credit to extend to a person.

• A measure used to indicate a person’s gross wealth.

• A reward system that is based on the number of credit cards a person has.

• A formula based solely on a person’s earnings.

A cash card generally:

• Can be used in the same way that someone uses a check to pay bills by mail

• Is purchased with a specific amount of money that can be used to pay for goods or services

• Is the same as a credit card which means you can use it to pay the minimum on a bill

• Is the same as a debit card and is always linked to a specific checking account