WISE EXAM REVIEW IV

Question 1

Which is safer, stocks or bonds?

Answer 1

bonds grow slower and are less risky

Question 2

Treasury Bill/ Note

Answer 2

a government bond

Question 3

Volatility

Answer 3

the concept of an investment increasing and decreasing along with the stock market

Question 4

401K

Answer 4

a retirement plan and group of investments; attached to your employer

Question 5

Asset

Answer 5

something that you own that hold monetary value

Question 6

Better Business Bureau

Answer 6

a organization that an individual reports to in the instance of a business using malpractice

Question 7

Consumer Price Index

Answer 7

the average price that people pay for goods and services

Question 8

Inflation

Answer 8

the gradual rising of prices

Question 9

Down Payment

Answer 9

the base amount of money paid which subtract from the amount of the full purchase

Question 10

Fixed Mortgage

Answer 10

a mortgage payment that never changes in cost

Question 11

Identity Theft

Answer 11

when someone steals your identity to access your assets and other personal information

Question 12

What is the difference between the W2 and W4

Answer 12

the W2 comes from your employer; the W4 sets the amount deducted from your paycheck for taxes

Question 13

Landlord

Answer 13

someone that owns the property that you rent out

Question 14

Pension

Answer 14

a retirement plan

Question 15

Pension vs. 401K

Answer 15

the pension is more guaranteed though, the 401k is more popular

Question 16

Phishing Fraud

Answer 16

when someone is actively attempting to steal your identity

Question 17

Roth IRA vs. Traditional IRA

Answer 17

both are retirement plans; roth ira pays taxes now, traditional ira pays later

Question 18

Will

Answer 18

a document of all the assets that are to be left to other people after the individual that writes the will dies

Question 19

Tenant

Answer 19

an individual that rents the property