WISE Financial Literacy Certification Test Topic Checklist

What are sources of income?

What does liquidity mean and what products are considered liquid?

What is overdraft protection (opt in regulation) and how does it work?

What is compound interest?

• Compound interest is interest calculated on both the initial principal and the accumulated interest from previous periods.

• Compound interest is interest calculated only on the initial principal.

• Compound interest is interest paid only at the end of the investment period.

• Compound interest is interest that decreases over time.

What are credit card cash advances?

• Credit card cash advances allow you to withdraw cash using your credit card, usually at a high interest rate and with additional fees.

• Credit card cash advances are rewards points you earn for every purchase made with your credit card.

• Credit card cash advances are discounts offered by credit card companies on shopping websites.

• Credit card cash advances are insurance policies provided by credit card issuers for lost or stolen cards.

What is the Truth in Lending Act?

What is the consequence of paying only the minimum payment due on a credit card bill or paying a bill late?

• Paying only the minimum or paying late results in more interest charges and possible late fees, increasing the total cost of debt.

• You will receive a reward or cashback for paying late or only the minimum.

• Your credit card balance will be reduced faster than usual.

• There will be no impact on your credit score or future borrowing ability.

What are the three leading credit reporting agencies?

• The three leading credit reporting agencies are Equifax, TransUnion, and Experian.

• The three leading credit reporting agencies are Visa, Mastercard, and American Express.

• The three leading credit reporting agencies are PayPal, Square, and Stripe.

• The three leading credit reporting agencies are Chase, Wells Fargo, and Bank of America.

What is the consequence of a lost or stolen credit card?

• A lost or stolen credit card can lead to unauthorized charges and potential identity theft if not reported promptly.

• A lost or stolen credit card will automatically be deactivated by the bank within 24 hours.

• A lost or stolen credit card can only be used for online purchases, not in stores.

• A lost or stolen credit card has no impact as long as you remember the card number.

How does the length of debt repayment impact the cost of debt?