WGU PERSONAL FINANCE EXAM 59 QUESTIONS
WITH VERIFIED ANSWERS 2025/2026
A defined contribution plan that automatically takes out money from an
employee's paycheck before income taxes and invests it in mutual funds for
purposes of retirement savings
- employer sponsored
- pretax (Pay taxes at withdrawal) - CORRECT ANSWER 401k
an IRA for small businesses in which the employer matches employee
contributions.
Under 100 employees - CORRECT ANSWER SIMPLE IRA
An investment professional who helps individuals set and achieve their long-term
financial goals through investments, tax planning, asset allocation, risk
management, retirement planning, and estate planning. The role of a financial
planner is to find ways to increase the client's net worth and help the client
accomplish all of his or her financial objectives. - CORRECT ANSWER financial
planner
helps people invest their money - CORRECT ANSWER brokerage firm
, Earn no commissions and work solely on a fee-for-service bases. They charge a
specified fee for the services provided - CORRECT ANSWER Fee-only financial
planners
All efforts designed to preserve assets and earning power associated with a
business. - CORRECT ANSWER Risk Management
A tax advantage retirement plan that may be established by a government (a
municipality) or nongovernment (nonprofit) employer - CORRECT ANSWER 457
Plan
The part of the Medicare program that pays for physician services, outpatient
hospital services, durable medical equipment, and other services and supplies. -
CORRECT ANSWER Medicare Part B
Part of Medicare which covers durable medical equipment (ex. walker) - CORRECT
ANSWER Medicare Part A
Financial institutions that accept deposits from individuals and provide loans -
CORRECT ANSWER Depository Institutions
A financial institution that accepts demand deposits and makes loans and
provides other services for the public - CORRECT ANSWER commercial bank
An account at a depository institution that is designed to hold money not spent on
current consumption - CORRECT ANSWER savings account
WITH VERIFIED ANSWERS 2025/2026
A defined contribution plan that automatically takes out money from an
employee's paycheck before income taxes and invests it in mutual funds for
purposes of retirement savings
- employer sponsored
- pretax (Pay taxes at withdrawal) - CORRECT ANSWER 401k
an IRA for small businesses in which the employer matches employee
contributions.
Under 100 employees - CORRECT ANSWER SIMPLE IRA
An investment professional who helps individuals set and achieve their long-term
financial goals through investments, tax planning, asset allocation, risk
management, retirement planning, and estate planning. The role of a financial
planner is to find ways to increase the client's net worth and help the client
accomplish all of his or her financial objectives. - CORRECT ANSWER financial
planner
helps people invest their money - CORRECT ANSWER brokerage firm
, Earn no commissions and work solely on a fee-for-service bases. They charge a
specified fee for the services provided - CORRECT ANSWER Fee-only financial
planners
All efforts designed to preserve assets and earning power associated with a
business. - CORRECT ANSWER Risk Management
A tax advantage retirement plan that may be established by a government (a
municipality) or nongovernment (nonprofit) employer - CORRECT ANSWER 457
Plan
The part of the Medicare program that pays for physician services, outpatient
hospital services, durable medical equipment, and other services and supplies. -
CORRECT ANSWER Medicare Part B
Part of Medicare which covers durable medical equipment (ex. walker) - CORRECT
ANSWER Medicare Part A
Financial institutions that accept deposits from individuals and provide loans -
CORRECT ANSWER Depository Institutions
A financial institution that accepts demand deposits and makes loans and
provides other services for the public - CORRECT ANSWER commercial bank
An account at a depository institution that is designed to hold money not spent on
current consumption - CORRECT ANSWER savings account
