W!SE TEST REVIEW 60

Front

A person receives a $200 gift card. It is important for the person to

Back

read the conditions on the card or packaging about inactivity fees

Front

Which is the most important question to ask when comparing credit card offers? Options: What is the annual percentage rate (APR) on the credit card?, Can credit card payments be made before the due date?, How many people are using the card?, What time of the month are the payments due?

Back

What is the annual percentage rate (APR) on the credit card?

Front

A person has a car loan with a 10% interest rate. The loan would cost the least amount if it is paid back in

Back

3 years

Front

Which approach to money management indicates an understanding of the time value of money? Options: saving money in a safe at home, saving money in an account that earns interest, using a prepaid credit card for all purchases, using debit card for all purchases

Back

saving money in an account that earns interest

Front

A stock is characterized as a “growth” stock because the expectation is for the corporation to

Back

have significant increases in sales and earnings

Front

The value of buying insurance for a cell phone is to

Back

be able to replace the cell phone if it is lost or stolen

Front

A person who is interested in earning investing income from stocks is generally advised to buy stocks that pay

Back

dividends

Front

A benefit of using a debit card is that it provides a way to

Back

limit the amount of cash a person needs to carry

Front

The purpose of having a diversified investment portfolio is to

Back

lower the investment risk

Front

One advantage of having a bank savings account is that it

Back

is a reliable way to earn interest while establishing a personal financial history