Wise Practice Pre-Test

Outstanding amount of money that is owed on a credit card bill

• Balance
• Down Payment
• Installment Loan
• Credit Limit

Shows every credit card ever taken out; a report on a persons creditworthiness.

• Credit Score
• Credit Report
• Credit History
• Sales Report

A rise in the general level of prices

• Inflation
• Investment
• Personal Debt
• Premium

A distribution of a portion of a company's earnings, decided by the board of directors, to a class of its shareholders.

• interest

• dividend

• profit

• opportunity cost

Annual percentage rate (APR) is...

• The true cost of credit that must be disclosed on a loan agreement
• Always expressed in dollars
• Required by the Securities and Exchange Commission
• Required by the Comptroller of the Currency

The best reason for depositing money in a bank or credit union savings account instead of keeping your money "under the mattress" is that money deposited in savings accounts are ____________________. insured.

• SEC

• SIPC

• FDIC

• NCAA

When a person brings an item to a pawnshop to obtain cash, the transaction is considered

• a collateralized loan
• a custodial payment.
• an unsecured loan
• a sales agreement

Collateral is:

• A.  Something of value that secures a loan to protect the lender
• B.  Something that explains your net worth
• C.  A form of credit
• D.  Required for all loans

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 total amount of earnings made over a one-year period after all deductions have been taken is known as:

• Gross annual income
• Gross monthly income
• Net annual income
• Net monthly income