WISE Financial Literacy Practice Test Questions with Verified Solutions

WISE Financial Literacy Practice Test Questions with Verified Solutions What tool does the Federal Reserve use to control the country's money supply? It utilizes monetary policy. Which of these is an example of an electronic funds transfer (EFT)? Transactions made at an ATM. Scott needs to set a PIN (Personal Identification Number) for his new ATM card. What method should he use to ensure the highest level of security for his PIN? He should create a random combination of numbers and letters Which of these statements about ATM (Automated Teller Machine) cards is incorrect? You can withdraw cash globally without any fees. For a high school student considering a finance career, which question should be prioritized? Will there be a good balance between financial rewards and job satisfaction? 2 From which source should one not derive funds for saving, investing, or spending? Capital losses resulting from selling stocks. What does research typically suggest about the connection between educational attainment and earning potential? Someone with a professional degree generally earns at least four times more annually compared to someone who did not finish high school. When you use a debit card for purchases, what typically happens to the amount spent? It is promptly deducted from your checking account. Jami's debit card was lost and she didn’t report it for three months. If unauthorized transactions occurred, what is her potential maximum liability? She could be liable for any amount. What is the tax status of the interest earned from U.S. Series EE Savings Bonds? It is not subject to state and local taxes. 3 What is the primary color of the $5.00 U.S. bill? It is green. What type of investment is ideal