WISE Financial Literacy Quiz (Credit and Insurance)

Question 1

Life insurance policy which is guaranteed to remain in force for the insured's entire lifetime.

Accepted Answer

Whole Life Insurance

Question 2

Which of the following will NOT lower your cost of auto insurance.

Accepted Answer

Earning Your Masters Degree

Question 3

If a insurance deductible is raised, then the premiums _________.

Accepted Answer

go down

Question 4

The lower the credit score, the higher the risk and the _________ the interest rate on loans.

Accepted Answer

higher

Question 5

You should cancel collision insurance in this circumstance.

Accepted Answer

When your vehicle is worth less than $3,000.

Question 6

Consequence of paying only the minimum payment on credit card.

Accepted Answer

Lower your credit score

Question 7

Life insurance which provides coverage at a fixed rate of payments for a limited period of time

Accepted Answer

Term Life Insurance

Question 8

Insurance that covers liability and the contents of a dwelling and not the structure itself.

Accepted Answer

Renters Insurance

Question 9

Allows access to certain doctors and hospitals within its network with lower rates for members

Accepted Answer

HMO Health Insurance

Question 10

Insurance works by pooling ______, this helps insurance companies spread out potential losses.

Accepted Answer

risk

Question 11

Which of the following is NOT a step to follow if you think you are a victim of identity theft.

Accepted Answer

Call the Better Business Bureau

Question 12

Is it better or worse to have a high debt to credit ratio when getting a loan.

Accepted Answer

worse

Question 13

Which is NOT a consequence of paying a credit card bill late.

Accepted Answer

Calls from merchants where you have used your card

Question 14

High fees and interest when using your credit card to get cash at an ATM.

Accepted Answer

Cash Advance

Question 15

A law enacted in 1968 that protects consumers in their dealings with lenders and creditors.

Accepted Answer

Truth in Lending Act

Question 16

The longer the debt repayment terms the _____________ the cost of repaying a loan.

Accepted Answer

higher

Question 17

Insurance to insure a person's income against the risk that they can no longer perform at work.

Accepted Answer

Disability Insurance

Question 18

A store which offers loans in exchange for collateral, if not repaid store keeps collateral.

Accepted Answer

pawnshop

Question 19

Which of the following is NOT a credit reporting agency?

Accepted Answer

Assurion

Question 20

Which type of insurance gives you a cash value?

Accepted Answer

Whole Life Insurance

Question 21

A fixed amount you pay for a covered health care service, usually when you get the service.

Accepted Answer

Copay

Question 22

Unfair, deceptive, or fraudulent practices of some lenders during the loan origination process.

Accepted Answer

Predatory Lending

Questions 22