W!SE Test Review 4

A stock broker or financial consultant:

• A.  Gives financial advice to clients
• B.  Sells money orders and certified checks
• C.  Guarantee a return on investment
• D.  Do not have to be licensed  

Lamar believes that interest rates are going to fall in the near future and remain low for a considerable period of time. She should invest in:

• A.  Nothing, she should put her money under her mattress
• B.  A variable rate certificate of deposit
• C.  A long-term, fixed rate certificate of deposit
• D.  A short-term, fixed rate certificate of deposit

Money received today is worth more than the same amount of money received sometime in the future is:  

• A.  The Rule of 72
• B.  The time value of money
• C.  Not true
• D.  Investing

Interest earned on interest is known as:  

• A.  Simple interest
• B.  True interest
• C.  Compounded interest
• D.  Variable interest

Use the Rule of 72 to calculate how long it will take for your money to double if it's earning 6% in interest

• 12yrs

• 16yrs

• 36yrs

• 72yrs

(Check all that apply) Which of the following are examples of types of savings vehicles?

• Certificate of Deposit

• Money Market Account

• Checking Account

• Savings Account

Which type of bank account typically offers no interest?

• Savings

• Money market

• Certificate of Deposit

• Checking

Which of the following typically have the highest fees?

• Retail Bank

• Credit Union

• Online Bank

• Payday Lender

The term referring to the rate of yearly interest for your credit card is commonly known as

• Default rate

• APR

• COD

• Grace Period

The form filed by students to receive federal financial aid for school is known as:

• FASFA

• FIFA

• FICO

• FAA