Exam (elaborations)
W!SE Financial Literacy Practice Test-solved
- Course
- Institution
W!SE Financial Literacy Practice Test
[Show more]
Content preview
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
The benefits of buying summaries with Stuvia:
Guaranteed quality through customer reviews
Stuvia customers have reviewed more than 700,000 summaries. This how you know that you are buying the best documents.
Quick and easy check-out
You can quickly pay through credit card or Stuvia-credit for the summaries. There is no membership needed.
Focus on what matters
Your fellow students write the study notes themselves, which is why the documents are always reliable and up-to-date. This ensures you quickly get to the core!
Frequently asked questions
What do I get when I buy this document?
You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.
Satisfaction guarantee: how does it work?
Our satisfaction guarantee ensures that you always find a study document that suits you well. You fill out a form, and our customer service team takes care of the rest.
Who am I buying these notes from?
Stuvia is a marketplace, so you are not buying this document from us, but from seller millyphilip. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy these notes for $10.49. You're not tied to anything after your purchase.
Can Stuvia be trusted?
4.6 stars on Google & Trustpilot (+1000 reviews)
72964 documents were sold in the last 30 days
Founded in 2010, the go-to place to buy study notes for 14 years now