Personal Finance Fundamentals, Exams of Nursing

Download Personal Finance Fundamentals and more Exams Nursing in PDF only on Docsity! WISE Test One of Andre's seldom-used credit cards has been stolen without his knowledge. When he gets his monthly statement, he realizes that someone else has been using the card and reports it stolen. The maximum amount of unauthorized purchases he is liable for is: - correct answer ✔✔$50 Consumers who file for bankruptcy are still responsible for: - correct answer ✔✔Tax claims and student loans Which of the following provides an increase in assets or wealth? - correct answer ✔✔Having capital gains The denominations of coins in the United States are: - correct answer ✔✔$.01, $.05, $.10, $.25, $.50, $1.00 Mutual funds are: - correct answer ✔✔An investment that holds a wide range of different investment instruments, providing diversification Michele and Claudia have a seven year old son. They won $50,000 on a TV games show and want to put it away for their son's education. Which of the following has the highest potential growth and the highest risk? - correct answer ✔✔Common Stock Banks use savings account deposits to: - correct answer ✔✔Give loans to consumers and businesses You have a checking account balance of $100 and you deposit a personal $200 check from your brother in you checking account. When will you be able to withdraw $150 in cash? - correct answer ✔✔3 to 7 days later, depending on your bank's check clearance policy Why is term life insurance usually the least expensive type of life insurance? - correct answer ✔✔The policy only pays a death benefit Neil will be traveling by air in Southeast Asia for six-week vacation. Which step will not provide protection during the trip? - correct answer ✔✔Take his passport Victims of predatory lending practices are typically: - correct answer ✔✔The elderly and people with a poor credit history How can you avoid becoming a victim of identity theft? - correct answer ✔✔Avoid giving your Social Security number on a phone call you did not initate Which of the following statements is usually true about indivuals who are financially literate? - correct answer ✔✔They understand the basics of personal finance and money management Which of the following is a disadvantage of using phone cards, debit cards, electronic transfers, and ATM cards? - correct answer ✔✔They expose consumers to greater likelihood of identity theft The price of the Candy Corporation Stock will generally increase when there is: - correct answer ✔✔Positive news about corporate earnings The process of setting aside money and putting it to work by having it earn intrest or dividends or gain value in the equities market with the idea of having additional funds to use in the future is described as: - correct answer ✔✔Savings and Investing The most liquid type of investment is: - correct answer ✔✔A money market account Joan wants to open a checking account and wonders if checking accounts pay interest. How would you answer her question? - correct answer ✔✔Some types of checking accounts pay interest The purpose of Insurance is NOT to: - correct answer ✔✔Diversify an investment portfolio Generally, the higher the deductible on an insurance policy, the - correct answer ✔✔Lower the premium A credit card finance charge is: - correct answer ✔✔The dollar amount it cost to use credit Which of the following is your rught as a shareholder of common stock? - correct answer ✔✔The right to recieve dividends if paid Finiancial services and products generally offered by banks and credit unions include: - correct answer ✔✔Savings and Loans How can individuals be prepared for losing their job or having a large medical expense? - correct answer ✔✔Save at least three months of income John's job provided the main income for his family. He died unexpectedly and had no life insurance. The probable financial consequence for his wife and two childern does not include: - correct answer ✔✔An increase in income and expenses Which statement does NOT accurately describe a characteristic of cash value for whole life insurance? - correct answer ✔✔Policy that accumulates chash value is less expensive than a policy that does not accumulate cash value A creditor may deny credit because of: - correct answer ✔✔Bad credit history A savings account earns the greatest amount of money when the interest on the account is compounded - correct answer ✔✔Daily Purchases made with your debit card are usually: - correct answer ✔✔Deducted immediately from your checking account Jennie owns Disney shares and cannot attend the annual stockholder meeting. She can: - correct answer ✔✔Vote by mail or online through a proxy A person is depositing $20 in cash and a check for $50. On the checking account deposit slip, the person should - correct answer ✔✔List the cash deposit separately from the check as well as the total of the deposit. Which of the following insurance covers vehicles? - correct answer ✔✔Automobile How can you protect yourself against credit card fraud? - correct answer ✔✔Be extremely careful about disclosing account information to unsolicited callers. Susan gives Marie her ABC Credit Union debit card and personal identification number (PIN) so Marie could get $25 from Susan's bank account. Marie withdrew $100 instead of the agreed to $25. How can Susan get the $75 back? - correct answer ✔✔No bank or government angency is obligated to reimbure Susan because she authorized Marie to use her ATM card and PIN The primary sources of income for most people between the ages of 20 and 35 who are not living on a pension or social security are: - correct answer ✔✔Salaries, wages, and tips Shares of stock are also known as: - correct answer ✔✔Equities When James received his pay check, he planned to cash it at a check cashing store. You advise him to cash it at his own bank if possible. Why? - correct answer ✔✔They typically charge high fees Which documents should be stored in a safe-deposit box? - correct answer ✔✔Mortgage loan papers. Lucy has no insurance. The situation(s) should she consider insuring against first are: - correct answer ✔✔Losses resulting from an illness, accident, or disability Which factor would most likely lead to an increase the interest rate on a person's credit card? - correct answer ✔✔Late payments John has a college student loan that he has to repay after he graduates. He will make his monthly payments over ten years. He has the following kind of loans: - correct answer ✔✔Installment Jami lost her debit card. She did not report it missing for 3 months. If the unauthorized person used her debit card, her maximum libility is: - correct answer ✔✔Unlimited liability Lisa lost her debt card. She did not report it missing for one week. If an unauthorized person used her debit card, her maximum liability is: - correct answer ✔✔$500 Dalton lost her debit card. She reported it missing within two days. If an unauthorized person used her debit card, her maximum liablity is: - correct answer ✔✔$50 A high school student has begun to investigate the field of finance as a career choice. In deciding about the field, the student should focus on which question first? - correct answer ✔✔Will I find a balance between financial rewards and persnal satisfaction from work? If a business wants to raise capital but not create debt, it can: - correct answer ✔✔Issue common stock Consumer finance companies, which are often advertised on TV, are also known as: - correct answer ✔✔Small loan companies You have a $2,000 loss. Your insurance company pays you $1,500 on the claim for the loss. The $500 the insurance did not pay is a result of your policy having a: - correct answer ✔✔Deductible Jim is a college senior with $50,000 in student loans. He earned $2,000 last year. He has no savings so he charged a $5,000 vacation on his credit card. How would you characterize Jim's use of credit? - correct answer ✔✔It is irresponsible use of credit because his current income is low Which statement is FALSE about most ATM (Automated Teller Machine) cards? - correct answer ✔✔You can always get cash anywhere in the world with no fee. Which statment best decribes the relationship between a person's education level and that person's potential earning power? - correct answer ✔✔A person with a professional degree is likely to earn at least four times as much per year as a person who did not complete high school. A blue-chip stock can be described as: - correct answer ✔✔A stock with a good reputation for quality management, products and services Which financial product can you buy for $25, is safe,and will be worth $50 at a future date? - correct answer ✔✔Series EE savings bond The federal agency that regulates the securities industry is the: - correct answer ✔✔Securities and Exchange Commission A person buys a homeowner's insurance policy with a $250 deductible, which means the person will - correct answer ✔✔Have to pay the first $250 which will be deducted from the claim settlement paid by the insurance company. The type of credit card issued by an oil company, bank, or department store is: - correct answer ✔✔A revolving charge card One example of a long-term retirement goal is to - correct answer ✔✔deposit at least $100,000 in a retirement account. A governement report indicated that the use of Pax's aspirin-free painkiller resulted in 100 cases of stomach poisoning. A large number of Pax's stockholders are likely to: - correct answer ✔✔Sell shares causing the price of the stock to decline If you have been denied credit, a job, a license, an insurance, policy, or a loan based on your credit report. You are entitled to receive a free copy of that credit report within how many days of denial? - correct answer ✔✔60 When money is not used and goods and services are exchanged for other goods and services, this system is called: - correct answer ✔✔Barter David bought stock for $4,000 and one year later he sold it for $1,000. The sale resulted in a: - correct answer ✔✔Capital loss Money orders are: - correct answer ✔✔A purchased certificate to pay a specified amount to a specific payee Ellen, Barbara, and Paul all charged $1,000 on their credit cards last year. Who paid the most in finance charges? - correct answer ✔✔Paul, who only pays the minimum amount each month Troy has $50 a month transferred electronically from his checking account to his savings account. The is an example of: - correct answer ✔✔A savings plan A blank endorsement on a check: - correct answer ✔✔Creates a check that can be cashed by anyone Mr. Akon's wife died. The money he received as the beneficiary on her life insurance is called the: - correct answer ✔✔Death benefit or face value Judi and Phil had a joint VISA credit card while they were married. They are now divorced. Who is responsible for the balance owed on the VISA card? - correct answer ✔✔Both Judi and Phil Jane opened her credit card bill and was surprised by the amount she owed. She cannot pay the full amount of the bill this month. The lowest dollar amount Jane is required to pay by the credit card company is the: - correct answer ✔✔Minimum payment When the market has a steady decline in stock prices over a period of time, it is known as a: - correct answer ✔✔Bear market Insurance is frequently described as a method of "sharing the risk" because the" - correct answer ✔✔Insured share A creditor determines your creditworthiness on: - correct answer ✔✔Character, collateral, and capacity Using someone else's money, promising to repay at a future date, and paying a fee for use of the money is the definition for: - correct answer ✔✔Credit Sara has invested in corporate bonds which are: - correct answer ✔✔Loans to the issuer of the bond Most Consumer Credit Counseling Services (CCCS): - correct answer ✔✔Charge a fee for setting up and administering a debt repayment plan When a corporation or governement agency borrows money from an investor and pays intrerest and principal to that same investor, it is a: - correct answer ✔✔Bond Frankie's savings account has earned a lot of interest. He wants to know if he must pay taxes on the interest earned. What would the IRS tell him? - correct answer ✔✔Savings account interest is taxable Which of the following investment products is guaranteed by the federal government? - correct answer ✔✔U.S. Treasury notes You can continue to charge purchases on your credit card when: - correct answer ✔✔The amount you owe on the card is below your credit limit. A Neon Oil Corporation tanker spilled oil in the ocean around Australia. As a result of this accident, the share price of this stock is likely to: - correct answer ✔✔Decrease When a self-employed person decides to purchase disability insurance it is generally to: - correct answer ✔✔Protect against the financial effects of not being able to work. George received a dividend from the company in which he is a stockholder. A dividend is: - correct answer ✔✔Distribution of part of the company's profit The activity of the New York Stock Exchange most closely resembles: - correct answer ✔✔An auction house What action should a person take who must make a tuition payment at the end of August each year? - correct answer ✔✔Decide how much money will be needed and then place 1/12th of that amount in a separate account each month. Predatory lending practices generally include: - correct answer ✔✔Very high interest and fees Why does a corporation issue bonds? - correct answer ✔✔To raise money for expansion or other company operations