Personal Finance WISE Test
Questions
and Answers Fully Solved 100%
• One of the benefits of holding an investment for over a year rather than selling it
in less than a year is that the - ✔️✔️Capital gains on the investment will be
taxed at a lower rate
• A person is convinced that a lending institution is charging too much interest for a
loan. This person should be aware that - ✔️✔️There are state usury laws
• A person is depositing $20 in cash and a check for $50. On the checking account
deposit slip, the person should - ✔️✔️list the cash deposit separately from the
check as well as the total of the deposit
• A man budgeted $200 month for clothing. This month the man spent $150 on
clothing therefore that budget item is considered to have: - ✔️✔️A budget
variance
• A man'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
children DOES NOT include: - ✔️✔️An increase in income and expenses
• A person believes that interest rates are going to fall in the near future and
remain low for a considerable period of time. This person should invest in -
✔️✔️A long-term, fixed rate certificate of deposit
• A person buys a flat screen, plasma, theater like television. The person has
homeowner's insurance. Why would it be appropriate to add a personal property
floater to that insurance? - ✔️✔️To cover the cost of replacement should the
television get damaged or stolen
• A person complains about how expensive it is to be a cigarette smoker. One of
the reasons cigarettes are so expensive is that. - ✔️✔️The government imposes
an excise tax on them
• A company offers a defined contribution pension plan which means that upon
retirement the employee will receive: - ✔️✔️The total amount of money
contributed plus investment earnings
• A credit card finance charge is: - ✔️✔️The dollar amount it costs to use credit
