What is a credit score?

A no. used to determine how much credit to extend to a per.

Kim wants to open a chking acct and wonders if chking accts pay interest. How would you answer

Some types of checking accounts pay interest

The purpose of Insurance is NOT to:

Diversify an investment portfolio

A credit card finance charge is:

The dollar amount it cost to use credit

How can individuals be prepared for losing their job or having a large medical expense?

Save at least three months of income

Why is term life insurance usually the least expensive type of life insurance?

The policy only pays a death benefit

studbud

WISE Financial Literacy Review (15)

15 termsStudBud Administration629 plays

15 Questions to Review for W!SE Financial Literacy Test

Flashcards15 cardsFPractice quizPHost liveL

Questions 15

Answers

1
What is a credit score?
A no. used to determine how much credit to extend to a per.
A rew sys that is based on the no of cred cards a person has
A formula based solely on a person’s earnings
A measure used to indicate a person’s gross wealth.
2
Generally, the higher the deductible on an insurance policy, the
less frequently the premium has to be paid
lower the premium
more frequently the premium has to be paid
greater the premium
3
Kim wants to open a chking acct and wonders if chking accts pay interest. How would you answer
Checking accounts never pay interest
All checking accounts pay interest
Chking accts pay int. if the acct bal doesnt fall below 300
Some types of checking accounts pay interest
4
A sav account earns the greatest amount of money when the interest on the account is compounded
monthly
daily
yearly.
quarterly
5
The purpose of Insurance is NOT to:
Share risk with other policy holders and the ins. co.
Diversify an investment portfolio
Protect assets
Protect against potential losses
6
Lucy's grandparents gave her a sav bond that will be worth $1,000 @ maturity. What amt was pd
These bonds are gifts for long term depositors
$1,000 for the bond
$750 for the bonding
$500 for the bond
7
A factor that is likely to affect the market price of a stock is:
Corporate profits
Wages
The age of the corporation
The number of corporate employees
8
Which financial product may pay a dividend?
Saving account
Common stock
Certificate of deposit
Money market account
9
Which of the following provides an increase in assets or wealth?
Taking out a loan
Volunteering at a hospital
Having capital gains
Running in the marathon
10
The term used to describe the ease and spd with which you can convert sav or an inv to cash is
Liquidity
Principal
Convertibility
Rate of return
11
A credit card finance charge is:
A service fee
The dollar amount it cost to use credit
The sales tax
The cost of the items purchased
12
The process of setting aside money and putting it to work by having it earn interest
Setting goals
Making Money
Savings and investing
Diversifying
13
New coins and currency make their way into the general economy, through the distr system of the
U.S. Federal Mint
Secretary of the Department of Treasury
Treasurer of the United States
Federal Reserve System
14
How can individuals be prepared for losing their job or having a large medical expense?
Save at least three months of income
Prepare a budget
Pay credit card bills on time
Maintain a checking account with sufficient funds
15
Why is term life insurance usually the least expensive type of life insurance?
The policy builds a cash value
The policy provides coverage for a lifetime
The policy only pays a death benefit
The policy is available to all consumers

WISE Financial Literacy Review (15) Flashcards | StudBud