WISE EXAM REVIEW II

Question 1

Bankruptcy: 13

Answer 1

the wage earner plan; you have 5 years to pay all of your debt

Question 2

Bankruptcy: 7

Answer 2

all owed debt is eliminated

Question 3

Collateral

Answer 3

any asset that can be repossessed by a loaner

Question 4

Consolidation Loan

Answer 4

when multiple loans are combined into one large loan

Question 5

Consumer Debt

Answer 5

the concept of an individual accumulating debt

Question 6

Co-sign Loan

Answer 6

When an two individuals sign on a single loan; typically when one has low credit

Question 7

Credit History

Answer 7

goes into you FICO score

Question 8

Credit Reporting Agencies

Answer 8

transunion, Experian, Equifax

Question 9

How many times a year can you get a free credit report?

Answer 9

once a year

Question 10

Default

Answer 10

when a company sues you for not paying a loan

Question 11

Finance Charges

Answer 11

interest rates

Question 12

Foreclosure

Answer 12

a house loan that goes into default; the house is repossessed

Question 13

Garnishment

Answer 13

the deduction of money from a paycheck by an employer; typically for child support

Question 14

Grace Period

Answer 14

the time between the due date of a bill and it’s late fee; typically 5 days

Question 15

Home Equity Loan

Answer 15

a second mortgage on a house; can cause sever debt

Question 16

Identity Theft

Answer 16

when someone steals your personal information and hack your property

Question 17

Installment Loan

Answer 17

when you pay the same amount on a loan every month

Question 18

Promotional Rate

Answer 18

a lower interest rate that is offered by a bank; if your able to pay in in time the lower rate will become the regular rate

Question 19

Revolving Credit

Answer 19

the amount on your credit card when compared to your credit limit

Question 20

Secured Credit Card

Answer 20

low credit limits; when you pay the limit before spending the money

Question 21

Secured Loan

Answer 21

a loan with collateral

Question 22

Unsecured Loan

Answer 22

a loan without collateral

Question 23

Truth in Lending Act

Answer 23

a loan company has to disclose all parts of the loan; the interest rate, term, due date of payments

Question 24

Usury Laws

Answer 24

protects consumers from interest rates that are incredibly high

Question 25

Variable Interest Rate

Answer 25

an interest rate that changes

Question 26

Annual Deductible

Answer 26

the total amount that a consumer spends on medical care that their insurance company needs to pay

Question 27

Beneficiary

Answer 27

an individual that will get all of the proceeds from another individuals life insurance policy

Question 28

Cash Value

Answer 28

the build up of whole/ universal
insurance

Question 29

Which insurance does not build cash value?

Answer 29

term life insurance

Question 30

Co-pay

Answer 30

the amount of money that a consumer pays with their insurance company

Question 31

Death Benefit

Answer 31

the amount that an individual gets from a recently deceased person’s life insuranceq

Question 32

Disability Insurance

Answer 32

the amount of money a consumer receives if they are unable to return to work

Question 33

Homeowner’s Insurace

Answer 33

insurance for your home

Question 34

Collision Insurance, Comprehensive Insurance, Liability Inurance

Answer 34

make up auto insurance

Question 35

Collision Insurance

Answer 35

when two vehicle result in a car accident

Question 36

Comprehensive Insurance

Answer 36

when one vehicle receives damage either naturally or from anything that’s not a car accident

Question 37

Liability Insurance

Answer 37

insurance for when you are at fault for causing an accident

Question 38

Full Coverage

Answer 38

when you have all three types of auto insurance

Question 39

Long-term Care insurance

Answer 39

when an elderly person receives money for long-term care