WISE FINANCIAL LITERACY LATEST TEST REAL QUESTIONS AND VERIFIED SOLUTIONS Which of the following is the federal law that requires the cost of credit to be disclosed to consumers in bold print on own agreement? - Truth in Lending Act Who benefits the most from inflation? - Long-term fixed rate borrowers What should a person do when he believes he is being charged too high a rate of interest for a loan by a lending institution? - Notify the lending institution about state usury laws A woman has just received a very expensive piece of jewelry. The woman has homeowner's insurance. Which statement would it be most appropriate for her to make to her insurance agent? - "I think I need a personal property floater." For the past five years, a person has had a $20,000 whole life insurance policy that has a cash value clause. The person decides to surrender the policy. At the time of surrender, the person will receive: - calculated amount of money which includes the premiums paid as well as the interest on that money A person buys a flat screen, plasma, theater-like television. The person has homeowner's insurance. Why would it be appropriate to add a personal property floater to that insurance? - To cover the cost of replacement should be television get damaged or stolen A person buys a homeowner's insurance policy with a $250 deductible, which means the person will: - have to pay the first $250 which will be deducted from the claim settlement paid by the insurance company John's job provided the main income for his family. He died unexpectedly and had no life insurance. The probable financial consequence for his wife and two children does not include: - An increased in income and expenses If a person makes a deposit of $10,000 or more into a bank account, the bank must notify the: - US Treasury Department The most liquid type of investment is: - A money market account. He financial institution where Ms. Sanchez has her checking account will continue to pay out money for the checks she writes as long as: - There is enough money in Ms. Sanchez's account to cover the amount if the checks Money orders are: - A purchased certificate to pay a specified amount to a specific payee The best suggestion you gave a friend who is writing a check for the first time is: - Date the check because it is usually proof of payment To qualify for a Federal Housing administration (FHA) loan, a person must generally: - fulfill income guidelines A person has three credit cards with very large outstanding balances and is unable to make payments on any of them. Which action should the person take? - Notify the credit card companies in order to negotiate a new payment plan