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WISE Financial Literacy Certification Practice Questions With Actual Correct Answers
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WISE Financial Literacy Certification Practice Questions With Actual Correct Answers
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WISE Financial Literacy CertificationPractice Questions With Actual Correct
Answers
Question : To qualify for a Federal Housing Administration (FHA) loan, a person must
generally
A: have at least a high school diploma.
B: have one-quarter of the cost of the home
for a down-payment.
C: fulfill income guidelines.
D: provide two individuals to co-sign the loan. CORRECT ANSWERS C: fulfill income
guidelines.
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?
A: Will I find a balance between financial rewards and personal satisfaction from work?
B: How many people do I know who work in this field?
C: Once I train for this area, how long before I will be
at the top of the field?
D: Are there people in this field who are dissatisfied
with their jobs? CORRECT ANSWERS A: Will I find a balance between financial
rewards and personal satisfaction from work?
A type of electronic funds transfer (EFT) is:
A: A transaction made with a check
B: A deposit made with a bank teller
C: Not widely used by consumers
D: An ATM transaction CORRECT ANSWERS D: An ATM transaction
A company offers a defined-contribution pension plan which means that upon retirement
the employee will receive
A: one-half of the employee's last year's salary.
B: the total amount of money contributed plus investment
earnings.
C: an amount of money based only on the length of time
the employee worked for the company.
D: a specified amount of money based totally on the profit
earned by the company while the employee worked
there. CORRECT ANSWERS B: the total amount of money contributed plus investment
earnings.
, The interest earned on United States Series EE Savings Bonds is
A: exempt from state and local taxes.
B: paid in a lump sum at the time the face value on the bond is reached.
C: equal to the money paid to purchase it. CORRECT ANSWERS A: exempt from state
and local taxes.
Buying a treasury bill (T-bill) is best for investors who are looking for
A: a place to invest between $100-$500.
B: a secure, low risk investment.
C: a higher yield on their investment than corporate bonds offer.
D: an investment that matures in 10-30 years. CORRECT ANSWERS B: a secure, low,
risk investment.
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
A: investor will pay only $5000 for the shares.
B: investor is buying 2000 shares.
C: brokerage firm is lending the investor 50% of the money.
D: brokerage firm will own 50% of the 1000 shares of stock that were purchased.
CORRECT ANSWERS C: brokerage firm is lending the investor 50% of the money
To determine the time value of depositing $100 in a savings account, a person needs to
know the interest rate and
A: her total income.
B: the rate of inflation.
C: whether the account is FDIC protected.
D: whether the bank offers overdraft protection. CORRECT ANSWERS B: the rate of
inflation.
The amount a lender charges to borrow money is called the:
A: Principal
B: Annual Percentage Rate (APR)
C: Loan balance
D: Finance charge CORRECT ANSWERS Correct Answer : D: Finance charge
The cost to use someone else's money for a period of time is called the:
A: Interest rate expressed as a percentage
B: Opportunity cost
C: Minimum payment
D: Inflation rate CORRECT ANSWERS A: Interest rate expressed as a percentage
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