Jo has 3 credit cards with large outstanding balances & is unable to make payments. She should

Notify the card companies to negotiate a payment plan

A person's debt ratio shows the relationship between debt & net worth. The lower the ratio the

better off financially the person is

A person complains about how expensive it is to be a cigarette smoker. One reason is that

the government imposes an excise tax on them.

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W!SE Financial Literacy Review ALL CATEGORIES 1

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Wise Financial Literacy certification practice from all categories. Moneypower.org questions

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Questions 10

Answers

1
Who benefits the most from inflation?
Long-term fixed rate borrowers
The government
Persons on fixed incomes
Lenders
2
To determine the time value of depositing $100 in a savings account you must know interest &
whether the account is FDIC protected
your total income
whether the bank offers overdraft protection
the rate of inflation
3
Jo has 3 credit cards with large outstanding balances & is unable to make payments. She should
Contact the IRS to avoid paying income tax this year
Notify a credit reporting agency in order to avoid late fees
Notify the card companies to negotiate a payment plan
File for bankruptcy to maintain her current credit score
4
A person's debt ratio shows the relationship between debt & net worth. The lower the ratio the
better off financially the person is
less liquid assets the person has
more liquid assets the person has
worse off financially the person is
5
After 5 yrs of owning a Roth IRA, Sid wants to buy his first home, he can withdraw from the IRA
tax and penalty free
but must pay a set penalty at the time of withdrawal
and have penalties deferred until retirement
and owed taxes are deferred until retirement
6
A person complains about how expensive it is to be a cigarette smoker. One reason is that
the tobacco supply is controlled by the FTC
the government imposes an excise tax on them.
the tobacco industry imports most of the tobacco
their cost is controlled by the FDA
7
Which of the following provides an increase in assets or wealth?
volunteering at a hospital
having capital gains
running in the marathon
taking out a loan
8
A pharmacy is to drugs as the American Stock Exchange is to
Stock advisors
Interest
Mutual funds
Securities
9
Jim budgeted $200 a month for clothes. This month he spent $150 on clothes. The budget item is
an income overage
a budget variance
a budget deficit
an outflow deficit
10
Which of the following does the Federal Reserve use to regulate the nation's money supply?
Fiscal policy
Monetary policy
Regulations
Proposing legislation

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