W!SE Practice

One of Andre's seldom-used credit cards has been stolen without his knowledge. When he gets his monthly statement, he realizes that someone else has been using the card and reports it stolen. The maximum amount of the unauthorized purchases he is liable for is:

• zero

• $50

• the total amount

• $25

Which factor would most likely lead to an increase in the interest rate on a person's credit card?

• number of purchases
• late payments
• number of cash advances
• total amount charged

Nora needed to buy food and did not have the cash, but had money in the bank. She was able to make the purchase by using her:

• Credit Card

• Identification Card

• Debit Card

• Cash card

Which of the following is a disadvantage of using phone cards, debit cards, electronic transfers and ATM cards?

• Consumers can make purchases without writing a check

• They expose consumers to greater likelihood of identity theft

• They slow down the economy's recovery

• They decrease availability of currency in the economy

Which formula shows the number of years it takes to double your investment?

• 72 / Interest Rate
• 72 / 2 * principal
• 72 / money invested
• 72 / number of years invested

If each of the following persons had the same amount of take home pay, who would need the greatest amount of life insurance?

• A young single woman with two young children

• A young single woman w/o children

• An elderly retired man, with a wife who is also retired

• A young married man w/o children

Which of the following credit card users is likely to pay the GREATEST dollar amount in finance charges per year, if they all charge the same amount per year on their cards?

• Vera, who always pays off her credit card bill in full shortly after she receives it.

• Jessica, who only pays the minimum amount each month.

• Megan, who pays at least the minimum amount each month and more, when she has the money.

• Erin, who generally pays off her credit card in full but, occasionally, will pay the minimum when she is short of cash.

Which of the following is true about sales taxes?

• You don't have to pay the tax if your income is very low.

• It makes things more expensive for you to buy.

• The national sales tax percentage rate is 6%.

• The federal government will deduct it from your paycheck.

Your take home pay from your job is less than the total amount you earn. Which of the following best describes what is taken out of your total pay?

• Federal income tax, social security and Medicare contributions.

• Federal income tax, sales tax, and social security contribution.

• Social security and Medicare contributions.

• Federal income tax, property tax, and Medicare and social security contributions.

Tax deductions and tax credits can _______ tax liability.

• increase

• reduce

• not affect

• none of the above