Ultimate Wise Review :)

The value of buying insurance for a cell phone is to

• permit an upgrade to a newer model cell phone

• be able to replace the cell phone if it is lost or stolen

• lower the cost of roaming charges on the cell phone

• be able to charge the cell phone service provider.

If a person has to pay $35 a year on each $100 borrowed, the cost in interest is (1 point)

• better than the average debit card fee

• worse than our US trade deficit

• low

• high

When a person wins $5,000 in the lottery, the person will

• receive the winnings from the Ferseral Reserve Bank (Fed).

• receive more than $5,000 because the money earns interest from the day the winnings are announced

• have to use the money to pay for an educational expense

• have to report the $5,000 to the Internal Revenue Service (IRS) as income for that year.

Which budget category is correctly matched with its explanation?

• Fixed expense: $50 pair of shoes to go with a new outfit

• Variable expense: $60 automatically deposited monthly into a savings account

• Fixed expense: $120 monthly car insurance bill

• Variable expense: $450 monthly rent payment

The cost of car insurance is affected by the

• kind of car owned

• expertise of the car salesperson

• type of gas the car requires

• number of times the car has been serviced

Why would a person put a stop payment on a check?

• The payee does not have a checking account

• To prevent anyone from cashing a check that was lost or stolen

• To avoid paying a fee for a lost check

• To close the checking account

A person has a car loan with a 10% interest rate. The loan would cost the least amount of money if it is paid back in

• 6 years

• 5 years

• 4 years

• 3 years

A person finds an error when reviewing her credit report. What can she do?

• Wait one year to see if the error appears on the next report

• Report the error to her creditors

• Contact the credit reporting agency immediately about the error

• Report the error to the Federal Trade Commission

Why does a corporation issue bonds to the public?

• it wants to borrow money

• it wants to lend money

• it wants to decrease the price of its stock

• it want to increase the price of its stock

Bankruptcy allows a person to erase all of the following debts EXCEPT for

• credit card charges and installment loans

• doctors' fees and hospital charges

• past due rent and car loans

• income taxes and child support payments