Wise Exam Practice 3

The best reason for depositing money in a bank or credit union savings account instead of keeping your money "under the mattress" is that:

• Money deposited in savings accounts are F.D.I.C. insured

• Most savings accounts earn a guaranteed rate of interest

• Most savings accounts come with a free credit card

• Money in a savings account can be accessed any time during the day or night.

Which financial product typically pays the highest rate of interest?

• Common stock

• Savings account

• Checking account

• Certificate of deposit

When Jessie needs health care, she must first go to her primary care physician who coordinates her care and decides whether Jessie should see a specialist. Jessie pays $10 as the co-pay when she sees her primary care doctor. Jessie has which type of health insurance?

• Fee-for-service health plan

• Managed care health plan

• Medicaid health plan

• Comprehensive health plan

Maxine has an auto loan that she has to pay. She will make monthly payments over five years. She has a(n):

• Diversified loan

• Secure loan

• Non-Installment loan

• Installment loan

Money in the United States includes:

• Gold

• Checking account balances on which checks can be drawn

• Barter

• Diamonds

The federal agency that regulates the securities industry is the:

• Federal Trade Commission

• Department of Commerce

• Securities and Exchange Commission

• Federal Reserve

A person buys a homeowner’s insurance policy with a $250 deductible, which means the person will:

• have to pay a quarterly premium of $250.

• have to pay the first $250 which will be deducted from the claim settlement paid by the insurance company.

• only receive payment from the insurance company of $250 for any single article damaged.

• not be responsible for the first $250 of the claimed damages.

The type of credit card issued by an oil company, bank, or department store is:

• An installment card

• A revolving charge card

• A debit card

• A cash card

One example of a long-term retirement goal is to:

• end the use of credit cards.

• close savings accounts

• deposit at least $100,000 in a retirement account.

• invest in high risk securities

A government report indicated that the use of Pax’s aspirin-free painkiller resulted in 100 cases of stomach poisoning. A large number of Pax’s stockholders are likely to:

• Buy shares causing the price of the stock to increase

• Sell shares causing the price of the stock to decline

• Not react, causing the price of the stock to remain about the same

• Buy Pax corporate bonds