WISE & EVERFI FINANCIAL LITERACY TEST REVIEW
QUESTIONS | TESTED AND PROVEN ANSWERS |
LATEST UPDATE 2024/2025 100% (GRADE A+)
A tax form filled out by an individual and filed with the IRS that determines the amount of income
tax owed in a single year.
Ans>> 1040
A retirement account offered through an employer, where an employee can contribute money
from his or her
paycheck before or after taxes.
Ans>> 401(k)
A retirement account similar to a 401(k) plan, but offered by non-profit organizations, like
universities or
charitable organizations.
Ans>> 403(b)
A savings plan offering tax benefits that can be used for any qualified educational expenses.
1
,Ans>> 529 college saving plan
Property owned by an individual or organization that has some value. Can refer to physical items
(like a house
or car) or to intangible items (like a stock or bond).
Ans>> Asset
A degree granted after two years of study, often by a community or junior college.
Ans>> Associate's degree
A payment type similar to a debit card that allows you to make electronic purchases but requires
that you
enter a PIN (Personal Identification Number) for any transaction.
Ans>> ATM Card
Another name for the interest rate charged on the balance of a credit card.
Ans>> Annual Percentage Rate (APR)
2
,A type of insurance that protects a policyholder in the case of a car accident. Most states require
it by law.
Ans>> Auto insurance
A degree awarded by a college or university for completing four years of undergraduate
studies.
Ans>> Bachelor's degree
The total amount of money in a banking account at any given time.
Ans>> Balance
A transfer of your existing credit card balance to another credit card. Balance transfers are
typically used when
a consumer wants to transfer their credit card debt onto a card with a lower interest rate.
Ans>> Balance Transfer
3
, A bond is basically a loan, except that in this case, you're the lender. When you buy a bond, you
loan an
amount of money to the organization issuing the bond at a certain interest rate for a certain
period of time.
You are paid interest from this loan at regular periods, and then, when the bond matures, you get
back your
initial investment plus any additional interest. Treasury and municipal bonds are specific types of
bonds.
Ans>> Bonds
A budget is a plan of how you will spend the money that you make or receive.
Ans>> Budget
A loan of cash you obtain with a credit card.
Ans>> Cash Advance
A type of savings vehicle in which you put your money away for a certain amount of time, called
a term, to
4
QUESTIONS | TESTED AND PROVEN ANSWERS |
LATEST UPDATE 2024/2025 100% (GRADE A+)
A tax form filled out by an individual and filed with the IRS that determines the amount of income
tax owed in a single year.
Ans>> 1040
A retirement account offered through an employer, where an employee can contribute money
from his or her
paycheck before or after taxes.
Ans>> 401(k)
A retirement account similar to a 401(k) plan, but offered by non-profit organizations, like
universities or
charitable organizations.
Ans>> 403(b)
A savings plan offering tax benefits that can be used for any qualified educational expenses.
1
,Ans>> 529 college saving plan
Property owned by an individual or organization that has some value. Can refer to physical items
(like a house
or car) or to intangible items (like a stock or bond).
Ans>> Asset
A degree granted after two years of study, often by a community or junior college.
Ans>> Associate's degree
A payment type similar to a debit card that allows you to make electronic purchases but requires
that you
enter a PIN (Personal Identification Number) for any transaction.
Ans>> ATM Card
Another name for the interest rate charged on the balance of a credit card.
Ans>> Annual Percentage Rate (APR)
2
,A type of insurance that protects a policyholder in the case of a car accident. Most states require
it by law.
Ans>> Auto insurance
A degree awarded by a college or university for completing four years of undergraduate
studies.
Ans>> Bachelor's degree
The total amount of money in a banking account at any given time.
Ans>> Balance
A transfer of your existing credit card balance to another credit card. Balance transfers are
typically used when
a consumer wants to transfer their credit card debt onto a card with a lower interest rate.
Ans>> Balance Transfer
3
, A bond is basically a loan, except that in this case, you're the lender. When you buy a bond, you
loan an
amount of money to the organization issuing the bond at a certain interest rate for a certain
period of time.
You are paid interest from this loan at regular periods, and then, when the bond matures, you get
back your
initial investment plus any additional interest. Treasury and municipal bonds are specific types of
bonds.
Ans>> Bonds
A budget is a plan of how you will spend the money that you make or receive.
Ans>> Budget
A loan of cash you obtain with a credit card.
Ans>> Cash Advance
A type of savings vehicle in which you put your money away for a certain amount of time, called
a term, to
4
