Wise Practice Test #6

An ATM fee may be charged if a withdrawal is made from an ATM

• At the person's own bank branch

• At another branch of the person's bank

• That is owned by the person's bank that is located in a shopping mall

• That is owned by a local fast food restaurant

A person has a health maintenance organization (HMO) insurance plan and is allowed to

• Choose any doctor

• Visit a doctor if located within ten miles

• Choose a doctor from a list provided by the insurance company

• Visit a doctor only once a month

A strategy investors use to reduce risk is to

• Invest in mutual funds instead of individual stocks

• Buy speculative instead of blue chip stocks

• Buy at least 100 shares of a company's stock

• Invest in stock of new companies

A capital gain results when the investor

• Sells an investment for a lower price than the investor paid

• Sells an investment for a higher price than the investor paid

• Sells more of the investment than was purchased

• Earns a higher income on investments than the previous year

When applying for a loan, the higher a person's credit score/rating the

• Longer the payment period will be for the loan

• Lower the interest rate will be for the loan

• Higher the interest rate will be for the loan

• Shorter the payment period will be for the loan

What is the collateral for a car loan?

• The car

• A savings account

• An income tax return

• A major credit card

A person might choose to become an entrepreneur because she wants to

• Work for a large or well-established corporation

• Pay no taxes

• Introduce a new product or service

• Avoid risk

A function of banks is to

• Calculate customer credit (FICO) scores

• Determine the rate of inflation

• Allow depositors to apply for passports

• Provide loans to consumers

How is a term life insurance policy different from a whole life insurance policy?

• The cost of a whole life policy increases as the person ages

• The term life policy is only for a limited period of time

• The whole life policy does not have cash value

• The term life policy can only be bought once in a lifetime

A person has a financial wellbeing when the person

• Borrows money from a parent

• Has assets worth more than her total liabilities

• Has a large mortgage on her home

• Sells an asset to repay a loan