W!SE Pre-test

A deposit of $1,000 into a savings account paying 4% interest is estimated to double in 18 years is an example of

• The Rule of 72

• Inflation

• Liquidity

• An opportunity cost

An ATM fee may be charged if a withdrawal is made from an ATM

• at your own bank branch

• located at a local gas station but not owned by your bank

• at another branch of your bank

• owned by your bank but located in a shopping mall

A homeowner's mortgage payments are based on the amount borrowed, the length of the time, and the

• interest rate on the loan

• selling price of the property

• owner's income

• owner's age

Mary lives in a high crime area where there's a high level of break-ins. Tamara lives in an area where break-ins are very rare. Based only on this information, Mary's homeowner's insurance is likely to be

• higher than Tamara's

• lower than Tamara's

• the same as Tamara's

• cancelled

Which of the following is a variable expense?

• rent

• car payment

• grocery bill

• loan payment

A person's credit history is important because it is used by

• employers to determine whether or not to give salary increases

• lenders to determine whether or not to approve credit

• banks to determine the rate of interest to pay on savings

• insurance companies to determine the due date of premiums

Your car breaks down and you need to get it repaired in order to go to work. Which answer is the best choice to use to repair your car?

• take your mother's jewelry to the pawn shop to get money

• sell share of stocks

• use money you've saved for emergencies

• take out a payday loan

A good reason to have a credit card is that it

• allows you to spend more than you earn

• makes you budget your money

• is safer than carrying cash

• lets you pay whenever you feel like it

You should avoid a tax refund loan because

• they are not insured by the government

• they charge extremely high fees

• they require a co-signer

• they force you to make a budget

You have a $500 deductible on your dental insurance. You need a root canal and the dentist says that the bill will be $750. How much will you and the insurance company pay?

• You will pay nothing because it's covered on your insurance

• You must pay the entire $750.

• The insurance will pay $500 and you will pay $250

• The insurance will pay $250 and you will pay $500.