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Personal Finance-WISE Financial Literacy Review
Flashcards
48 cards
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Practice quiz
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Questions
48
Answers
1
Who benefits the most from inflation?
Long-term fixed rate borrowers
The government
Lenders
Persons on fixed incomes
2
A blank endorsement on a check
has no effect
restricts what you can do with check
creates a check that can be cashed by anyone
cancels the check
3
Pam lost her debit card and didn't report it, if an unauthorized person uses it
no loss of funds
she'll lose $50
she'll lose $500
loss is limited only by amount in account
4
When a person pawns a watch, the transaction is considered
a custodial loan
an unsecured loan
a collateralized loan
a sales agreement
5
Who hurt the most from inflation?
Short term borrowers
The government
Long-term fixed rate borrowers
Persons on fixed incomes
6
New currency makes its way into the economy through the distribution system of the:
Treasury dept
FDIC
Federal Reserve
US Mint
7
you have an auto loan with 60 months of equal monthly payments, you have
closed end credit
non-installment loan
balloon loan
an unsecured loan
8
Uncollaterized loan means
loan on life insurance policy
loan without assets to cover loan amount
home equity loan
no co-signer
9
The higher a persons debt ratio
the worse off financially the person is
the better off financially the person is
the less liquid assets the person has
the more liquid assets the person has
10
Income tax is paid on only income earned through working for pay
True
False
11
You lose your credit card, and don't report it and someone uses it, your liability is
$50
0
$500
the credit limit
12
Which of the following provides an increase in assets or wealth?
Having capital gains
Taking out a loan
Volunteering at a hospital
Running in the marathon
13
Your annual income is $60,000, you contributed $3000 to a traditional IRA, taxable income is
$57,000
$3000
63,000
0
14
Which is considered to be open-end credit
Lowes charge card
a mortgage
installment loan
a car loan
15
Not for profit, owned by members
Savings and Loan Association
Commercial bank
Investment club
Credit Union
16
Law which limits the interest rate charged by lenders are:
Anti interest laws
Usury laws
Retrointerest laws
Abeyance laws
17
Which is most liquid
Stock
Money market
CD
Corporate bond
18
Saving deposit for retirement years , deposits not tax deductible, but withdrawals are tax free
Traditional IRA
Roth IRA
CD
Burk IRA
19
you believe being charged too high a rate of interest for a loan by a lending institution?
Ask the lending institution to lower its rates.
Notify the lending institution about state usury laws
Accept the loan but pay it off early
Accept the loan but pay it off early.
20
Travelers checks
are equivalent to credit cards
are free at most banks
are FDIC insured
function as cash but are easily replaced if lost
21
A savings account earns the greatest amount of money when the interest is compounded
monthly
quarterly
yearly
daily
22
When can a person view her credit report for free?
only when applying for credit
once every 2 years
any time from all three major CRA's
once a year from the 3 major CRA's
23
Which typically pays the highest rate of interest
money market
Savings
Common stock
CD
24
You found incorrect information on you credit report. You can
request credit bureau to correct information
tell creditor to remove false information
not dispute negative information
void the credit report
25
Something you are working to achieve within a defined period of time is a(an):
Value
Goal
Ideal
Dream
26
Which account is most liquid
Checking
Traditional IRA
CD
Savings
27
Someone who relies on a taxpayer for support is
a burden
a beneficiary
a tax recipient
a dependent
28
A form W-4,
can never be changed
tells you how much wages you were paid
is filed with your income tax return
assists employer in determining income tax to withhold
29
Your credit card number is stolen by someone online who uses it. Your potential liability is
$50
unlimited
0
up to your credit limit
30
The most secure method for an employer to pay employees is to use
direct deposit
in-store credit
printed paycheck
payroll card
31
you can withdraw $ from a Roth IRA tax free in each of the following instances except
buying first house
for college tuition
unemployed
you are 60 years old
32
Which is least liquid
Money Market
CD
Checking
Savings
33
Account that requires you to keep a certain amount of money for a fixed period of time
Savings account
CD's
IRA's
money market
34
Bankruptcy could remain on a credit report for
until all debts are paid
forever
10 years
3 years
35
If you deposit $10,000, the bank must notify
FDIC
Federal Reserve
US Treasury
State Banking Commission
36
Only people who own land and homes pay property tax
True
False
37
A credit card finance charge is:
the sales tax
the cost to use credit
the cost of the items purchased
a service fee
38
Electricity and food expenditures are:
variable expenses that change from one period to another
fixed expenses that remain the same
personal expenses for an individual or family
discreet expenses that do not have to be paid monthly
39
law that requires the cost of credit be disclosed to consumers in bold print on loan agreement?
Fair Credit Reporting Act
Fair Debt Collection Practices Act
Truth in Lending Act
Equal Credit Opportunity Act
40
Which charges the highest interest rate
Pawn shop
Bank
Finance company
Credit union
41
Medicare
is the full employment for doctors act
helps pay medical expenses for elderly
is called the Affordable Healthcare Act
helps pay medical care expenses those with limited income
42
Easy to convert to cash
Convertible
liquid
Rate of return
principal
43
Common fees that may be charged by a depository institution include all EXCEPT
Overdraft fee
Minimum balance fee
ATM fee
Late fee
44
Which would be considered an employee benefit
walking distance from home
travel opportunities
paid sick leave
monthly salary
45
Net income is
pay before taxes
pay after taxes
non-taxable
pay before overtime added
46
Payroll tax includes deductions for Social Security and Medicare program
True
False
47
Great for saving for retirement, no tax on $ deposited, only on withdrawal
Roth IRA
CD
Money Market
traditional IRA
48
Which of the following does the Federal Reserve use to regulate the nation's money supply?
Regulations
Monetary policy
Fiscal policy
Proposing legislation
