Wise Financial Literacy Test (Practice Test)

When you make an ATM withdrawal, when does the money come out of your account?

• immediately

• within 48 hrs

• after 24 hrs

• at the end of the month

A woman is offered two jobs; one with a salary of $27,000 plus benefits and the other at $30,000 with no benefits. It would be a wise financial decision for her to take the:

• $27,000 job, if the benefits package is worth more than the $3,000 difference in salary

• $30,000 job, as it has a higher salary

• $27,000 job, regardless of the benefits

• Neither job, as both are below average salary

What does the phrase, "pay yourself first," mean?

• set aside money for savings each month BEFORE paying any other bills

• spend all your income on necessities before saving

• invest in stocks before paying bills

• donate a portion of your income to charity

The cost of borrowing money is commonly referred to as the

• Interest rate

• Loan fee

• Principal amount

• Service charge

If you have 10 shares of stock with one company and they are paying a declared dividend of $3, you will earn:

• $20

• $25

• $30

• $35

An advantage of requesting a free annual credit report is that the person can

• check the report for errors

• improve their credit score immediately

• apply for a loan without interest

• receive financial advice from experts

A budget should include a person's: credit score, net income and expenses, investment portfolio, gross income and assets

• credit score, investment portfolio, gross income and assets

• net income and expenses

• credit score, net income and expenses, gross income

• investment portfolio, gross income and assets

CD's (certificates of deposit) do not require a minimum deposit

• true

• false

• only for certain banks

• only for online banks

When you receive an inheritance or money from a life insurance policy you are the:

• beneficiary

• executor

• trustee

• heir

The federal government created the FDIC to protect:

• their bank deposits up to $250,000

• their investments in the stock market

• their retirement savings from inflation

• their real estate properties from foreclosure