A Stock broker or financial consultant

Gives financial advice to clients

A bank certificate of deposit is a

Requires a deposit and there is a penalty for withdrawals

A single college graduate with their first full-time job, their 1st financial goal should be to

Establish savings for emergencies

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

The better off financially the person is

You see a cereal commercial on TV and insisted that your parent buy it. This is advertising's

Power of persuasion in creating demand

One benefit for holding an investment over a year rather than selling in less than a year

Capital gains on investment will be taxed at a lower rate

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WISE Money

14 termsStudBud Administration595 plays

#quiz to help with preparation of the #W!SE test for #Financial Literacy.

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Questions 14

Answers

1
A Stock broker or financial consultant
Do not have to be licensed
Gives financial advice to clients
Guarantee a return on investment
Sells money orders and certified checks
2
A type of electronic funds transfer (EFT) is
A deposit made with a bank teller
An ATM transaction
Not widely used by consumers
A transaction made with a check
3
A bank certificate of deposit is a
Deposits that are issued for 1/2 of the face value
Requires a deposit and there is a penalty for withdrawals
Cash deposit in a savings account that earns interest
Requires a deposit and can withdraw money at anytime
4
A term that best describes your gross pay after taxes are deducted is
Assests
Total revenues
Take-home pay (A.K.A. Net Pay)
Net worth
5
Spreading one's assets across several types of saving and investing products to manage risk
Diversification
Budgeting
Allocation
Pooling
6
Which of the following does the FED use to regulate the nation's money supply
Proposing legislation
Regulations
Monetary Policy
Fiscal Policy
7
Money set aside to grow is typically called
Net income
Discretionary income
A budget
Savings or investments
8
If a person makes a deposit of 10,000 or more into a bank account, the bank must notify the
US Treasury Department
Federal Deposit Insurance Corporation (FDIC)
State Banking Commission
Federal Reserve Board (FED)
9
A single college graduate with their first full-time job, their 1st financial goal should be to
Buy a house
Establish savings for emergencies
Create a stock portfolio
Buy a life insurance policy
10
A person's debt ratio shows the relationship between debt and net worth. The lower the ratio
The worse off financially the person is
The better off financially the person is
The more liquid assets the person has
The less liquid assets the person has
11
Which of the following will help you the LEAST in managing your money?
Get advice from your friends
Set goals and keep budget for your net income
Plan ahead for large expenses, shop w/list, & impulse buying
Pay your rent/mortgage payment and utility bills on time
12
You see a cereal commercial on TV and insisted that your parent buy it. This is advertising's
A long-term, fixed rate certificate of deposit (CD)
Power of persuasion in creating demand
A short-term, fixed rate certificate of deposit (CD)
A variable certificate of deposit (CD)
13
You believe that interest rates are going to fall in the near future for a long time you invest
A variable rate CD
A Short -Term, fixed rate CD
A long-term, fixed rate CD
Nothing, you put all your money under a mattress
14
One benefit for holding an investment over a year rather than selling in less than a year
Profits from investment can be averaged for the time held
Fees will not be charged by broker for selling investment
Money earned on investment will be considered tax free
Capital gains on investment will be taxed at a lower rate

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