WorksheetsWise wise wise
Total questions: 40
Worksheet time: 20mins
Time value of money is concept that refers to money
received today is worth more than the same amount of money received in the future
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it is advisable to avoid lending money to a friend or relative unless the person
has [promissory note signed by the borrower in the presence of a witness.
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A person FICO credit score is 803 Her creditworthiness is best described as
very good she should be able to obtain most types of credit at a reasonable interest rate
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A person should consider changing his budget when
he has a newborn child
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A person wrote a check for 100$ but her checking amount only has 25$ the bank paid the check because she has
overdraft protection
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Certified Financial Planners give advice to their clients in order to help them
achieve their financial goals within target dates
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How does corporate bond differ from corporate stock
The bondholder lent the company money; the stockholder bought part ownership in the company
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A person who has several types of saving and investment products to manage risk is using a strategy known as
ddiversification
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A person takes a job that offers a 5% matching contribution to a 401K plan This means that for every dollar the employee contributes to the 401k the employer will
match each dollar contributed up to 5% of employee's salary
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A person should check her free credit reports
once a year
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A person is comparing the interest rate on a certificate of deposit CD to the rate on saving account. Usually, the interest rate on CD is.
Higher
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The bank teller informs a customer that the total amount of money in his checking account is $503.55. This amount called the
balance
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Marital status, age, education, gender and neighborhood are all factors that generally affect the cost of
car insurance
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A person used her credit to buy flowers at the florist. The credit card company
added purchase to her credit card bill to be paid on the due date
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Common stock is also know as
equities
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the term used to describe the ease and speed with which a financial product can be converted to cash is
liquidity
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What is the difference between a debit card and a credit card
using a debit car is a person paying with his own money and a credit card is taking a loan needs to be paid
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By following the advice to pay yourself first a person is getting into a habit of
building wealth through savings
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What is the cost of using someone else's money
interest
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Having a debit card allows a person to
easily access his cash
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After required deductions have been taken out a person's pay. the amount of money the employee receives to take home is known as
net pay
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When buying cell phone insurance, the person should consider the cost of the annual insurance premium and compare it to the cost of
buying a new phone
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Some people invest in collectibles such as paintings and coins as a strategy to accumulate wealth because
their limited availability is likely to increase its value
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The budgeting term that describes money left over after paying taxes fixed expenses and other essential living expenses is
discretionary income
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what should a person tell a friend who is writing a check for cash
if it is lost, it is easy for anyone to cash the check
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Financial services and products generally offered by banks and credit unions include
lending
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Which form of check endorsement should be ADVOIDED because it makes a check as good as cash and can be presented for payment by anyone
A blank endorsement with only a person's signature and date
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it is most beneficial if a person is able to buy a home when
interest rates are low
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A person who owns shares and cannot attend the annual stockholder meeting can
vote by mail or online through a proxy
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People use an Electronic Funds Transfer EFT service because it is a/an
convenient and secure way to move money
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In economy with very low interest rates, an investor interested in earning income should use some of his savings to buy
stocks paying dividends
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Dollar cost averaging is used for investing in
stocks
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Last year, a person had three car accidents that resulted in the insurance company paying $3,000 for car repairs because of the person's diving history, his yearly premium will most likely
be increased
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When an employee has money deducted from his paycheck to deposit into his employer's retirement plans, the employee is contributing to his
401k plan
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Credit card companies are allowed to
decrease credit limits without giving advance notice
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How does having a savings account help a person's financial wellbeing
it enables a person to save for major purchases
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Redlining is illegal because it
is a discriminatory practice
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Employment, collecting rent, owning a business, and making a profit on selling a collectible are examples of
Income generated from a variety of sources
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A recession is characterized by
high unemployment
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A person who is planning to retire can receive income from all of the following sources EXCEPT
term life insurance
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