Wise Financial Literacy Practice Test
If a person makes a deposit of $10,000 or more into a bank account, the bank must
notify the - ANS-A: US Treasury Department. In order to track large deposits, the federal
government requires that deposits of $10,000 or more be reported to the Treasury
Department.
Banks use savings account deposits to: - ANS-C: Give loans to consumers and
businesses. The basic functions of banks and credit unions are to be an intermediary
between savers and borrowers.
Which financial product may pay a dividend? - ANS-D: Common stock. All of these
types of accounts and financial products except for common stock earn interest.
Margaret wants to store a valuable coin collection and important papers. Generally,
consumers should: - ANS-B: Rent a safe deposit box for their valuables. Bank
customers can rent safe deposit boxes from the bank.
What action should a person take who must make a tuition payment at the end of
August each year? - ANS-A: Decide how much money will be needed and then place
1/12th of that amount in a separate account each month. The best way to save in order
to make a yearly purchase, in this case a tuition payment,
A bank Certificate of Deposit is a - ANS-B: Savings instrument that requires a deposit
for a period of time during which there is a penalty for withdrawals. A certificate of
deposit (CD) is a savings instrument that requires a deposit for a period of time (term)
during which the saver cannot withdraw money from the plan without a penalty.
The phrase used for putting money into a savings account is - ANS-C: Making a
deposit. Putting money into an account is "making a deposit" and taking money out is
"making a withdrawal."
Which financial product has the most predictable income? - ANS-C: Certificate of
deposit. Most certificates of deposit (CDs) are issued with an interest rate that is fixed at
a specified rate for the entire term of the deposit.
If a person makes a deposit of $10,000 or more into a bank account, the bank must
notify the - ANS-A: US Treasury Department. In order to track large deposits, the federal
government requires that deposits of $10,000 or more be reported to the Treasury
Department.
Banks use savings account deposits to: - ANS-C: Give loans to consumers and
businesses. The basic functions of banks and credit unions are to be an intermediary
between savers and borrowers.
Which financial product may pay a dividend? - ANS-D: Common stock. All of these
types of accounts and financial products except for common stock earn interest.
Margaret wants to store a valuable coin collection and important papers. Generally,
consumers should: - ANS-B: Rent a safe deposit box for their valuables. Bank
customers can rent safe deposit boxes from the bank.
What action should a person take who must make a tuition payment at the end of
August each year? - ANS-A: Decide how much money will be needed and then place
1/12th of that amount in a separate account each month. The best way to save in order
to make a yearly purchase, in this case a tuition payment,
A bank Certificate of Deposit is a - ANS-B: Savings instrument that requires a deposit
for a period of time during which there is a penalty for withdrawals. A certificate of
deposit (CD) is a savings instrument that requires a deposit for a period of time (term)
during which the saver cannot withdraw money from the plan without a penalty.
The phrase used for putting money into a savings account is - ANS-C: Making a
deposit. Putting money into an account is "making a deposit" and taking money out is
"making a withdrawal."
Which financial product has the most predictable income? - ANS-C: Certificate of
deposit. Most certificates of deposit (CDs) are issued with an interest rate that is fixed at
a specified rate for the entire term of the deposit.
