W!SE Practice Test #8

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

• Valunteering at a hospital

• Taking out a loan

• Having capital gains

• Running in the marathon

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

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.

If you have a managed health care plan, it means that you:

• Can go to any doctor at any time.

• Usually must first meet with your primary care health care physician.

• Will be responsible for $100 of a doctor bill.

• Can apply for an 80% reimbursement of the amount paid to the doctor.

Jack's wallet, with all his credit cards, was stolen. He needs to:

• Notify the credit card companies after he gets his next account statements to get the 800 telephone numbers to report the card stolen.

• Check the next account statements for unauthorized charges and, if so, file a complaint with the credit card company.

• Nothing because retailers will not accept charges by someone who does not own the card.

• Notify each credit card company immediately.

Shares of stock are also know as:

• Bonds

• Debts

• Money market funds

• Equities

Which documents should be stored in a safe-deposit box?

• Checkbook statements

• Copies of current and past budgets

• Current paycheck stubs

• Mortgage loan papers

Rose lost her debit card. She did not report it missing for 3 months. If an unauthorized person used her debit card, her maximum liability is:

• $50

• $500

• Unlimited liability

• No liability because she notified the financial institution.

Travelers checks, often used for vacations:

• Are equivalent to credit cards

• Are free at most banks

• Function as cash and are easily replaced if lost

• Are FDIC insured

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