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W!SE Financial Literacy Practice Test-solved
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W!SE Financial Literacy Practice Test
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W!SE Financial Literacy Practice TestWhich of the following does the Federal Reserve use to regulate the nation's money supply? - Answer Monetary policy
Identify the background color of a U.S. $5.00 bill. - Answer Green
A type of electronic funds transfer (EFT) is: - Answer An ATM transaction
Scott just got an ATM card to use and must choose a PIN (Personal Identification Number). How should he select a PIN that will give him maximum protection against anyone else being able to find out what the PIN is? - Answer Use a random selection of letters and numbers
Which statement is FALSE about most ATM (Automated Teller Machine) cards? - Answer You can always get cash anywhere in the world with no fee.
A high school student has begun to investigate the field of finance as a career choice. In
deciding about the field, the student should focus on which question first? - Answer Will I find a balance between financial rewards and personal satisfaction from work?
Money for saving, investing, or spending cannot be from: - Answer Capital losses from the sale of stock
Which statement best describes the relationship between a person's educational level and that person's potential earning power? - Answer A person with a professional degree is likely to earn at least four times as much per year as a person who did not complete high school
Purchases made with your debit card are usually: - Answer Deducted immediately from your checking account
Jami lost her debit card. She did not report it missing for 3 months. If an unauthorized person used her debit card, her maximum liability is: - Answer Unlimited liability
The interest earned on United States Series EE Savings Bonds is - Answer exempt from state and local taxes. Buying a treasury bill (T-bill) is best for investors who are looking for - Answer a secure, low risk investment.
A pharmacy is to drugs as the American Stock Exchange is to: - Answer Securities
As an investment, a person decides to buy a small house that has three rental apartments. The profits from this investment may be lower then expected if the - Answer
one of the apartments is not rented.
What is the largest equities market in the world? - Answer New York Stock Exchange (NYSE)
A person owns a stock that pays a $2.00 a share dividend. If the person chooses to reinvest that dividend, this means that the $2.00 will go toward buying - Answer more of the same stock.
Using a brokerage firm, a qualified investor buys 1000 shares of a common stock at $50
a share on 50% margin. This means that the - Answer brokerage firm is lending the investor 50% of the money.
An investor bought 40 shares of ABC corporation's stock at $80 a share. Two weeks later, the investor receives notice that the corporation has approved a 2-for-1 stock split.
Based on this information, the investor would own at the moment of the split - Answer 80 shares of the stock and the price of each share is $40.
Before the Kiss Corporation can issue stocks or bonds, it must register the issue with: - Answer The Securities and Exchange Commission (SEC)
If a business wants to raise capital but not create debt, it can: - Answer Issue common stock
If a person makes a deposit of $10,000 or more into a bank account, the bank must notify the... - Answer US Treasury Department
In order to track large deposits, the federal government requires that deposits of $10,000 or more be reported to the Treasury Department. Some concerns may be that a person might be trying to avoid paying taxes on game winnings or perhaps illegal gains. - Answer State Banking Commission
Which is the best example of a way to reduce fees paid for ATM transactions? - Answer
When making supermarket purchases with a debit card, a person adds $50 in cash to the transaction instead of using an ATM machine.
The most liquid type of investment is: - Answer A money market account
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