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WGU D363 PERSONAL FINANCE FINAL
EXAM ALL POSSIBLE QUESTIONS AND
ANSWERS 2024/2025 SOLVED AND
PASSED 100%;(ACE IN THE D363 TEST) 1 / 4
WGU D363 PERSONAL FINANCE FINAL
EXAM ALL POSSIBLE QUESTIONS AND
ANSWERS 2024/2025 SOLVED AND
PASSED 100%;(ACE IN THE D363 TEST)
D363 Study Guide Questions Budgeting and Cash Flow List three financial institutions that are not FDIC insured.Annuities, life insurance, and stocks What is a FICO score? What is a good score?A FICO score is a number that is used as a method of evaluating an individuals Creditworthiness. A good score ranges from 670 – 719 in FICO score terms.Match the seven types of depository institutions to their main characteristics Commercial Bank − D Community Bank − B Mutual Savings Bank − E Thrift Institution − GOnline Bank − F Savings and Loans − A Credit Union − C A.Focus primarily on savings accounts and issuing loans. Offer rates .1−.2% higher than commercial banks B.Type of commercial bank that focuses on local customers and businesses C.Non−profit institution where members share common bond or background of some kind D.Accepts deposits, makes business loans and offers basic investment products E.Depositors own the institution mutually, accepts deposits and focuses on mortgage and personal loans F.Regulated like any other bank, but can offer higher rates of return without the brick and mortar locations G.Accept deposits and issue personal loans, but does not focus on commercial loans What formula is used to calculate Simple Interest?Simple Interest = Principle x Rate of Interest per year x Time Give three examples of Economic Indicators and what they would tell us Consumption, investment, and international trade are some examples of Economic Indicators that go a bit hand in hand because depending on what the population is consuming (e.g. food, clothing, electronics, etc.) can help determine what people invest in and trade 2 / 4
internationally to meet the demands of their consumers. These things help indicate if there is change coming in the economic market.What is more liquid− a Money Market fund or a CD? Why?A Money Markey fund is more liquid because you do not incur early withdrawal fees; are able to withdraw money, use a card associated with the account, or write checks from the account. 3 / 4
Which type of living situation is less expensive over the long term− buying or renting? Why is this true?Buying in the long term is less expensive than renting because when you own, your property can appreciate in value, and after a mortgage is paid off, you only have taxes, insurance, and utilities to pay for on the property.What is an Adjustable−Rate Mortgage? When would it be beneficial for a homeowner?An Adjustable−Rate Mortgage is a mortgage where the interest rate against the burrower fluctuates based on the economy. This would be beneficial to a homeowner because the mortgage can be paid off quicker when the economy is doing well and the interest rates are low.What is the difference between a Money Market Fund, a Money Market Mutual Fund and a Money Market Account? Which one is FDIC insured?A Money Market Mutual Fund is a money market account acquired through investment companies, while a Money Market Fund is acquired through a mutual fund. A Money Market Account is an interest−earning account that offers some check writing privileges and is the only one of the three that is FDIC insured.Insurance What is the difference between speculative risk and pure risk?Speculative risk is voluntary taking on the risk for the chance to have a win or loss, versus pure risk is out of human control and results in a loss.
Match the risk mitigation method with its definition:
Risk Avoidance − B Risk Retention − E Loss Control − A Risk Transfer − C Risk Reduction − D A.Reduce loss frequency and loss severity B.Eliminate all exposure to risk C.Move the risk to another company D.Lowering risk to acceptable and manageable levels E.Use a deductible to accept a portion of the risk What does cash value in life insurance mean?It means money that is invested and earns interest that can be borrowed against or withdrawn in case of emergency.
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