Wise Review #2

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 the unauthorized purchases he is he liable for is:

• $50

• zero

• The total amount

• $25

Consumers who file for bankruptcy are still responsible for:

• Mortgage loans

• Tax claims and student loans

• Car loans

• Credit card balances

Mutual funds are:

• An investment portfolio managed by the investor

• An investment that holds a wide range of different investment instruments, providing diversification

• Usually less risky than investing in a money market

• Guaranteed to increase in value

Banks use savings account deposits to:

• pay interest to checking account depositors

• pay bonuses to executives

• give loans to consumers and businesses

• help out different charities in the area

Why is term life insurance usually the least expensive type of life insurance?

• The policy only pays a death benefit

• The policy builds a cash value

• The policy provides coverage for a lifetime

• The policy is available to all consumers

Neil will be traveling by air in Southeast Asia for a six-week vacation. Which step will not provide protection during the trip?

• Buy baggage claim insurance

• Take his passport

• Buy flight insurance

• Buy medical insurance that covers him when he travels internationally

Joan wants to open a checking account and wonders if checking accounts pay interest. How would you answer her question?

• All checking accounts pay interest

• Checking accounts never pay interest

• Some types of checking accounts pay interest

• Checking accounts pay interest if the account balance does not fall below $300.00

New coins and currency make their way into the general economy, consumers and businesses, through the distribution system of the:

• Treasurer of the United States

• Secretary of the Department of Treasury

• Federal Reserve System

• U.S. Federal Mint

A factor that is likely to affect the market price of a stock is:

• The age of the corporation

• Corporate profits

• The number of corporate employees

• Wages

What is a credit score?

• A number used to determine how much credit to extend to a person.

• A measure used to indicate a person’s gross wealth.

• A reward system that is based on the number of credit cards a person has.

• A formula based solely on a person’s earnings