WISE EXAM REVIEW III

Question 1

Pin Number

Answer 1

a four-digit number that is attached to your debit card

Question 2

Predatory Lending

Answer 2

when a loaner lends money to someone they know cannot pay it back

Question 3

Prepayment

Answer 3

when a consumer pays something before the due date

Question 4

Promotional Rate

Answer 4

when you get a lower interest rate than usual

Question 5

Manage Care Insurance

Answer 5

doctors within this network will be cheaper because they work with your insurance company

Question 6

Premium

Answer 6

a bill

Question 7

Private Mortgage Insurance (PMI)

Answer 7

the banks coverage for when a consumer does not pay a mortgage loan

Question 8

Renter’s Insurance

Answer 8

covers all of a consumer’s personal property as well as liability insurace

Question 9

Unemployment Insurance

Answer 9

money an individual receives for not being at work

Question 10

Universal Life/ Whole Life Insurance

Answer 10

both of these build cash value

Question 11

Dependent

Answer 11

a person that cannot/ does not work and is reliant on someone that does

Question 12

Are stocks or bonds riskier?

Answer 12

stocks are riskier

Question 13

Antiques

Answer 13

a type of investment

Question 14

Bear Market

Answer 14

when the economy is doing bad resulting in the downfall of stocks and bonds

Question 15

Bull Market

Answer 15

when the economy is doing well resulting in the success of stocks and bonds

Question 16

Where do bonds come from?

Answer 16

the government

Question 17

Where do stocks come from?

Answer 17

the stock exchange market

Question 18

Capital Gain

Answer 18

when a consumer buys an asset and it multiplies in value over a period of time