WISE Financial Literacy Certification Practice Questions with Complete Solutions

1 WISE Financial Literacy Certification Practice Questions with Complete Solutions If a high school student is considering a career in finance, what is the initial question they should consider? A: Will I be able to balance financial rewards with personal job satisfaction? B: How many acquaintances work in the finance sect or? C: How long will it take to achieve top status in this career? D: Are there individuals in this field who are unhappy with their jobs? ✔✔A: Will I be able to balance financial rewards with personal job satisfaction? --- Which of the followin g is an example of an electronic funds transfer (EFT)? A: A check transaction. 2 B: Making a deposit through a bank teller. C: A transaction not commonly used by consumers. D: Using an Automated Teller Machine (ATM). ✔✔D: Using an Automated Teller Machine (ATM). --- In a defined -contribution retirement plan, what does an employee receive when they retire? A: Half of their final annual salary. B: The total contributions along with any investment returns. C: An amount based only on the length of their employment. D: A fixed sum based entirely on the company's profits during their tenure. ✔✔B: The total contributions along with any investment returns. --- 3 How is the interest earned from United State s Series EE Savings Bonds taxed? A: It is not subject to state or local taxes. B: It is paid in full when the bond matures. C: It equals the initial amount paid for the bond. ✔✔A: It is not subject to state or local taxes. --- Question: What is typically required to be eligible for a Federal Housing Administration (FHA) mortgage? A: Holding a hi gh school diploma or higher educational qualification. B: Making a down payment that is at least one -fourth of the home's price. C: Meeting specific income criteria. D: Having two individuals co -sign the loan.