Wise Financial Literacy Practice Test Questions and Answers | 100% Correct Answer | Grade A+

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."