WISE Practice Test #9

When applying for a mortgage to buy a home, it is important to know that the

• Higher the loan, the lower the monthly payment

• Lower the loan, the higher the monthly payment

• Higher the down payment, the higher the monthly payment

• Lower the down payment, the higher the monthly payment

Online banking allows customers to

• Access accounts 24 hours a day

• Make cash deposits from home

• Earn additional interest on accounts

• Access accounts only during business hours six days a week

The main reason a person buys disability insurance is to have a protection against

• The need to file for bankruptcy due to high doctor or hospital expenses

• The loss of a full-time job during a major recession

• A loss of income when unable to work due to an injury or illness

• A serious on-the-job accident when the floor is slippery

What should a person do to AVOID becoming a victim of identity theft?

• Use the same password for all internet accounts

• Always use a Social Security number for identification

• Share pin numbers only with close friends

• Shred all personal documents that are no longer needed

Which agency protects the money that depositors have in savings, checking, and certificate of deposit accounts in banks?

• Federal Reserve System (Fed)

• Securities and Exchange Commision (SEC)

• U.S. Department of the Treasury

• Federal Deposit Insurance Corporation (FDIC)

A person can lower the cost of his car insurance by

• Increasing the deductible

• Buying a new car

• Increasing his collision coverage

• Volunteering at a hospital

Even though the United States is becoming a “cashless society,” it is still important to have some cash because

• It is a way to improve a person's credit score or net worth

• The money can be used if ATMs become disabled during a disaster

• The money will increase in value over time

• It is the best way to save for a larger purchase

The most liquid investment is a/an

• Boat

• Car

• Savings account

• Insurance policy

To determine if a person's budget is realistic, which action should the person take?

• Wait until the end of the month to deposit money in a savings account

• Do internet research on the amount that should be budgeted for fixed and variable expenses

• Record actual expenses and income for at least one month

• Pay variable expenses before paying fixed expenses

A person has been hired for a job that pays $300 a week. When the person receives her paycheck, the amount they will actually receive after deductions on the paycheck is the person's

• Hourly pay

• Gross pay

• Net pay

• Vacation pay