W!SE Financial Literacy Test Comprehensive Review

Question 1

Which is considered a 'fresh start' but requires a complete liquidation of all assets?

Accepted Answer

Chapter 7 Bankruptcy

Question 2

A _ can be added to your policy to cover expensive items.

Accepted Answer

floater/rider

Question 3

Depository institutions that exist to 'make a profit'

Accepted Answer

Banks

Question 4

Which bankruptcy is not allowed if you make too much money?

Accepted Answer

Chapter 7 Bankruptcy

Question 5

Which of the following instruments is NOT as good as cash?

Accepted Answer

Personal check

Question 6

A collection of all the securities held by an investor.

Accepted Answer

portfolio

Question 7

This agency exists to help consumers if they find themselves in trouble with credit?

Accepted Answer

CCCS

Question 8

Which of the following is NOT a part of the Federal Reserve System?

Accepted Answer

Farmer's Open Market Committee

Question 9

Pay higher than average dividends (compared to other stock issues)

Accepted Answer

Income Stock

Question 10

Which of the following is NOT a characterisic of money?

Accepted Answer

Applicable

Question 11

The part Federal Reserve System that is responsible for conducting monetary policy.

Accepted Answer

Federal Open Market Committee

Question 12

Which of the following Treasury securities is considered 'short term'?

Accepted Answer

Treasury Bill

Question 13

To state your health and medical wishes in the event that you are incapacited, you make a __.

Accepted Answer

Living Will

Question 14

Does not cover damage to the dwelling itself.

Accepted Answer

Renter's insurance

Question 15

A check that is more than six months old is called a/n __.

Accepted Answer

Stale check

Question 16

The LEAST risky of the following investments.

Accepted Answer

Series EE Bond

Question 17

The first shares of a company's stock are traded in the/on the __.

Accepted Answer

Primary market

Question 18

Collectibles are considered risky because they __.

Accepted Answer

both are true of collectibles

Question 19

A stock that is expected offer returns in the future regardless of economic conditions.

Accepted Answer

Growth Stock

Question 20

The term used for 'rate of return' on a bond.

Accepted Answer

Yield

Question 21

When a business wants to 'go public' the first point of contact is __.

Accepted Answer

An investment bank

Question 22

The largest securities exchange in the world is called __.

Accepted Answer

The NYSE

Question 23

If and investor is interested in building a portfolio and buying life insurance, he should call

Accepted Answer

A life insurance agent

Question 24

When you die, your estate will most likely undergo a process called __.

Accepted Answer

probate

Question 25

Lenders must give notice of any interest rate change as a result of the __.

Accepted Answer

Truth in Lending Act

Question 26

A person can 'gift' up to $13,000 to a beneficiary to avoid paying estate taxes.

Accepted Answer

True

Question 27

A special endorsement __.

Accepted Answer

signs a check over to another person

Question 28

Which of the following is the most liquid investment?

Accepted Answer

Savings Account

Question 29

Term used to refer to the total amount of the stocks and bonds issued by a company.

Accepted Answer

Market Capitalization

Question 30

Consumers can purchase securities ___.

Accepted Answer

Thru a broker on a securities exchange

Question 31

This insurance is less expensive and provides protection for a specific period of time.

Accepted Answer

Term Life

Question 32

Which of the following is NOT a characteristic of an effective goal?

Accepted Answer

SMART

Question 33

A form you fill out when you accept a job to claim 'allowances' for tax purposes.

Accepted Answer

W4

Question 34

Jan has been appointed by her best friends will to raise her minor children. She is an/a __.

Accepted Answer

guardian

Question 35

A type of retirement account that is not tax deferred but is available if one needs it.

Accepted Answer

Roth IRA

Question 36

The U.S. tax system is a __ tax system.

Accepted Answer

progressive

Question 37

The most common managed care plan.

Accepted Answer

HMO

Question 38

In order to see a specialist with an HMO, the insured needs to __

Accepted Answer

see a PCP for a referral

W!SE Financial Literacy Test Comprehensive Review

Questions 38

W!SE Financial Literacy Test Comprehensive Review

Questions 38