Wise PQ

A person who wants to cash his paycheck is advised to go to his bank rather than to a check

cashing store because check cashing stores

• typically charge high fees for their services.

• require the person to have a co-signer in order to cash a check.

• have a 48-hour waiting period before they cash a check.

• will not cash checks written for more than $100.

Which should be the first financial goal for a recent college graduate who is single and has a

full-time job?

• Buy a house.

• Buy a life insurance policy.

• Have a three-to-six month emergency fund.

• Create a stock portfolio.

A person who owns stocks may decide to buy bonds and mutual funds in order to

• diversify her investment portfolio.

• avoid paying taxes on capital gains.

• reduce her variable expenses.

• eliminate the need for retirement planning.

A person with homeowner’s insurance had electronic equipment currently worth $2,000

stolen from her apartment. The insurance company approved her $2,000 claim and paid her $1,500. The most likely reason for the insurance company’s paying her less than the $2,000 claim is that her insurance policy had a $500

• co-insurance clause.

• deductible.

• finance charge.

• premium.

A person who is following the advice to “pay yourself first”

• did not receive a salary increase to keep up with the cost of living.

• will have more money available for savings this year.

• will be able to buy more goods and services this year.

• puts aside money for saving before spending money on entertainment.

If a person receives a salary raise of 3% and the rate of inflation is 5%, which statement is

true?

• The salary raise is not enough to allow the person to buy as much as she did in the

  previous year.

• The rate of inflation did not keep up with salary increases.

• The person who received the salary increase will not be affected by an increase in

  prices.

• The rate of inflation is lower than it was the previous year.

To qualify for A HUD housing loan, you must meet?

• Income tax

• Income guidelines

• be retired

• have a college degree

If I deposit 11,000 dollars in the bank. The bank will notify the?

• IRS

• FBI

• FDIC

• Treasury Dept.

An example of an EFT is a ?

• Paying cash

• applying for a loan

• Using an Automatic teller machine (ATM)

• Writing a check

Tax day is traditionally

• July 4th

• January 1st

• April 15th

• May 13th