W!SE Review Part 1

When John bought a Microsoft bond, he was

• Lending money to Micrsoft
• Borrowing money from Microsoft
• Buying part ownership in Microsoft
• Investing in a liquid asset

The type of credit card issued by a bank or store is 

• An installment card
• A revolving charge card
• A debit card
• A cash card

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

• Maintain a checking account 
• Pay credit cards on time
• Prepare a budget
• Save at least 3-6 months of income

Doug wants to buy a car in two months, but doesn't have enough money. What is his best choice?

• Purchase a certificate of deposit
• Take out a loan from a bank or car dealer
• Open a money market account
• Apply for a 30-year mortgage

To improve an unfavorable credit rating, a person should

• pay bills on time
• apply for more credit
• increase the number of payroll deducations
• open a checking account

To make sure you will always remember your automated teller machine (ATM) card personal identification number (PIN), you  should write the PIN and keep it 

• in your wallet
• in your checkbook
• on your ATM card
• in a safe place at home

Nora needed to make a long distance call from a pay phone and did not have cash. She was able to make the call using 

• Credit card
• Traveler's check
• Money order
• Identification card

The only type of life insurance that doesn't develop a cash value is 

• Term Life insurance
• Whole life insurance
• Universal life insurance
• Variable universal life insurance

The advantage of having a ROTH Individual Retirement Account is that

• Money cannot be withdrawn before you are 70
• Money withdrawn from the account is tax-free after age 59 1/2
• Only people collecting social security can open an account
• THis type of account gives unlimited income to a person for life

A person routinely uses a credit card to pay for purchases. If this person frequently fails to make payments on time, the credit company will most likely take what action?

• Increase the interest rate
• Change the payment due date
• Repossess the merchandise purchased
• Increase the grace period on the card