Wise Financial Literacy Certification Study Guide
UPDATED ACTUAL EXAM QUESTIONS AND CORRECT
ANSWERS
Question 1.
Gift Cards
ANSWER
can be used like cash
- You may be charged a monthly inactivity fee after one year if they are not used
Question 2.
money orders
ANSWER
a printed order for payment of a specified sum, issued by a bank or post office.
Question 3.
reconciling a checking account
ANSWER
also called balancing
- comparing your checkbook register with the bank statement
- should be done monthly
Question 4.
tax anticipation loans
ANSWER
A refund anticipation loan (RAL) is a short-term consumer loan secured by a taxpayer's
expected tax refund
1/6
, Question 5.
truth in lending act
ANSWER
An act which requires lenders to inform borrowers of all direct, indirect and true costs of
credit.
Question 6.
what do you do if you think you are a victim of identity theft
ANSWER
call banks, cancel credit cards, review purchases on accounts
Question 7.
colateral
ANSWER
property that is pledged as security for a loan if the loan is not repaid, the property is taken
Question 8.
insurance deductible
ANSWER
A deductible is the amount that the insured has agreed to pay before the insurer is obliged to
pay anything on a covered claim. The higher the deductible the lower the monthly premium
(payment) - the lower the deductible the higher the monthly premium (payment).
Question 9.
How to reduce the cost of auto insurance
ANSWER
get good grades, no accidents, good credit, and drive a certain type of car.
Question 10.
securities/equities
ANSWER
stocks and bonds
2/6
UPDATED ACTUAL EXAM QUESTIONS AND CORRECT
ANSWERS
Question 1.
Gift Cards
ANSWER
can be used like cash
- You may be charged a monthly inactivity fee after one year if they are not used
Question 2.
money orders
ANSWER
a printed order for payment of a specified sum, issued by a bank or post office.
Question 3.
reconciling a checking account
ANSWER
also called balancing
- comparing your checkbook register with the bank statement
- should be done monthly
Question 4.
tax anticipation loans
ANSWER
A refund anticipation loan (RAL) is a short-term consumer loan secured by a taxpayer's
expected tax refund
1/6
, Question 5.
truth in lending act
ANSWER
An act which requires lenders to inform borrowers of all direct, indirect and true costs of
credit.
Question 6.
what do you do if you think you are a victim of identity theft
ANSWER
call banks, cancel credit cards, review purchases on accounts
Question 7.
colateral
ANSWER
property that is pledged as security for a loan if the loan is not repaid, the property is taken
Question 8.
insurance deductible
ANSWER
A deductible is the amount that the insured has agreed to pay before the insurer is obliged to
pay anything on a covered claim. The higher the deductible the lower the monthly premium
(payment) - the lower the deductible the higher the monthly premium (payment).
Question 9.
How to reduce the cost of auto insurance
ANSWER
get good grades, no accidents, good credit, and drive a certain type of car.
Question 10.
securities/equities
ANSWER
stocks and bonds
2/6
