WISE FINANCIAL LITERACY UPDATED
EXAM QUESTIONS AND CORRECT
ANSWERS
●● Comparison shopping for a car is necessary because
Answer: the price for the car can vary a great deal.
●● Financial planners generally stress the importance of starting to save
and invest early because
Answer: of the power of compounding and appreciation.
●● An important feature of a good financial goal is that the goal
Answer: has a specific time frame.
●● Purchasing power decreases and it costs more money to buy more
good when there is an
Answer: inflation.
●● What strategy can help a person achieve her goal to buy a house?
Answer: Following a budget that allows for saving.
, ●● A college student has to live on a tight budget. Before making a
decision to buy the newest cell phone, which question should he ask
himself first?
Answer: Is the new cell phone a need or want.
●● Which of the following quotes is sound financial advice?
Answer: "A penny saved is a penny earned."
●● Fixed expenses include
Answer: rent.
●● Mandatory deductions from a person's paycheck include
Answer: federal withholding tax and FICA.
●● When should a person begin contributing to a retirement plan?
Answer: As young as possible.
●● Which of the following is the source of income for most people aged
20-35?
Answer: Wages/salary
●● The U.S. government agency responsible for the collection and
enforcement of federal taxed known as
EXAM QUESTIONS AND CORRECT
ANSWERS
●● Comparison shopping for a car is necessary because
Answer: the price for the car can vary a great deal.
●● Financial planners generally stress the importance of starting to save
and invest early because
Answer: of the power of compounding and appreciation.
●● An important feature of a good financial goal is that the goal
Answer: has a specific time frame.
●● Purchasing power decreases and it costs more money to buy more
good when there is an
Answer: inflation.
●● What strategy can help a person achieve her goal to buy a house?
Answer: Following a budget that allows for saving.
, ●● A college student has to live on a tight budget. Before making a
decision to buy the newest cell phone, which question should he ask
himself first?
Answer: Is the new cell phone a need or want.
●● Which of the following quotes is sound financial advice?
Answer: "A penny saved is a penny earned."
●● Fixed expenses include
Answer: rent.
●● Mandatory deductions from a person's paycheck include
Answer: federal withholding tax and FICA.
●● When should a person begin contributing to a retirement plan?
Answer: As young as possible.
●● Which of the following is the source of income for most people aged
20-35?
Answer: Wages/salary
●● The U.S. government agency responsible for the collection and
enforcement of federal taxed known as
