WorksheetsWise Financial Literacy Test (Practice Test)
Total questions: 20
Worksheet time: 10mins
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
If you make a cash deposit for $10,000 or more in your bank account, your bank is obligated to notify:
the US Treasury Dept.
the Federal Reserve
the IRS
the SEC
Why does a corporation issue bonds to the public?
It wants to borrow money and is willing to pay interest on the loan
It wants to increase its stock price
It aims to reduce its debt obligations
It seeks to improve its credit rating
A benefit of buying term life insurance as opposed to whole life insurance is that term insurance usually:
offers a greater amount of insurance coverage for a specific period of time at a lower cost
provides lifelong coverage regardless of age
accumulates cash value over time
is more expensive than whole life insurance
Money in the form of cash or currency acts as a:
store of value
unit of account
medium of exchange
standard of deferred payment
Sometimes a vendor or creditor may ask you to pay a bill with a certified check; you will have to get a certified check from your local:
bank or credit union
online payment service
money transfer agency
check-cashing store
When you use your debit card to make a purchase, when does the money come out of your account?
immediately
within 24 hours
at the end of the month
after 3 business days
When making a list of your liabilities a person should include: stock investments, checking account balances, mortgage loan, money market account balance
stock investments
checking account balances
mortgage loan
money market account balance
The $25,000 that a person won on a TV game show is considered
windfall income
earned income
investment income
passive income
You've written a check for your power bill and realize you've lost it before even getting it in the mail; if you place a stop payment on the check, you can expect your bank to:
charge a minimum fee for the stop payment
refund the entire amount of the check
issue a new check immediately
notify the payee of the lost check
In a managed health care insurance plan, such as health maintenance organization (HMO), the individual member receives:
medical treatment of a specified co-payment
unlimited free medical services
cash reimbursement for medical expenses
access to any doctor without restrictions
