WISE & Everfi Financial Literacy Test
Review Exam Questions with 100%
Correct Answers
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. - ✔✔1040
A retirement account offered through an employer, where an employee can
contribute money from his or her paycheck before or after taxes. - ✔✔401(k)
A retirement account similar to a 401(k) plan, but offered by non-profit
organizations, like universities or charitable organizations. - ✔✔403(b)
A savings plan offering tax benefits that can be used for any qualified
educational expenses. - ✔✔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). - ✔✔Asset
A degree granted after two years of study, often by a community or junior
college. - ✔✔Associate's degree
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,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. - ✔✔ATM Card
Another name for the interest rate charged on the balance of a credit card. -
✔✔Annual Percentage Rate (APR)
A type of insurance that protects a policyholder in the case of a car accident.
Most states require it by law. - ✔✔Auto insurance
A degree awarded by a college or university for completing four years of
undergraduate studies. - ✔✔Bachelor's degree
The total amount of money in a banking account at any given time. -
✔✔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. - ✔✔Balance Transfer
A bond is basically a loan, except that in this case, you're the lender. When you
buy a bond, you loan an
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,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. - ✔✔Bonds
A budget is a plan of how you will spend the money that you make or receive. -
✔✔Budget
A loan of cash you obtain with a credit card. - ✔✔Cash Advance
A type of savings vehicle in which you put your money away for a certain
amount of time, called a term, to
allow your principal to earn interest. - ✔✔Certificate of deposit
A payment type that works just like credit cards except the balance must be
paid in full every month. - ✔✔Charge Card
A claim is the request you make to your insurance company for payment of the
benefits allowed by your
coverage. For instance, if you receive a bill for repairs made to your car, you
might submit a claim to your auto
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, insurance company to request they pay the bill for you. - ✔✔Claim
Compound interest is interest that's generated not only from the money you
put into an account, but also
from the interest you make on that money. In other words, with compound
interest, you earn interest on your
interest. - ✔✔Compound Interest
The number of compounding periods in one year. The greater the compounding
frequency, the more often
your interest is calculated and added back into your account. Daily is much
better than annually. - ✔✔Compounding frequency
These combine several student loans into one bigger loan from a single lender,
which is then used to pay off
the balances on the other loans. - ✔✔Consilidation Loans
When a product or service is illegally used to deceive you into sending money or
signing up with a phony
service. Consumer fraud scams frequently start with a fake email, letter or
phone call. - ✔✔Consumer Fraud
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Review Exam Questions with 100%
Correct Answers
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. - ✔✔1040
A retirement account offered through an employer, where an employee can
contribute money from his or her paycheck before or after taxes. - ✔✔401(k)
A retirement account similar to a 401(k) plan, but offered by non-profit
organizations, like universities or charitable organizations. - ✔✔403(b)
A savings plan offering tax benefits that can be used for any qualified
educational expenses. - ✔✔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). - ✔✔Asset
A degree granted after two years of study, often by a community or junior
college. - ✔✔Associate's degree
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©JOSHCLAY 2025/2026. YEAR PUBLISHED 2025.
,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. - ✔✔ATM Card
Another name for the interest rate charged on the balance of a credit card. -
✔✔Annual Percentage Rate (APR)
A type of insurance that protects a policyholder in the case of a car accident.
Most states require it by law. - ✔✔Auto insurance
A degree awarded by a college or university for completing four years of
undergraduate studies. - ✔✔Bachelor's degree
The total amount of money in a banking account at any given time. -
✔✔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. - ✔✔Balance Transfer
A bond is basically a loan, except that in this case, you're the lender. When you
buy a bond, you loan an
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©JOSHCLAY 2025/2026. YEAR PUBLISHED 2025.
,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. - ✔✔Bonds
A budget is a plan of how you will spend the money that you make or receive. -
✔✔Budget
A loan of cash you obtain with a credit card. - ✔✔Cash Advance
A type of savings vehicle in which you put your money away for a certain
amount of time, called a term, to
allow your principal to earn interest. - ✔✔Certificate of deposit
A payment type that works just like credit cards except the balance must be
paid in full every month. - ✔✔Charge Card
A claim is the request you make to your insurance company for payment of the
benefits allowed by your
coverage. For instance, if you receive a bill for repairs made to your car, you
might submit a claim to your auto
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, insurance company to request they pay the bill for you. - ✔✔Claim
Compound interest is interest that's generated not only from the money you
put into an account, but also
from the interest you make on that money. In other words, with compound
interest, you earn interest on your
interest. - ✔✔Compound Interest
The number of compounding periods in one year. The greater the compounding
frequency, the more often
your interest is calculated and added back into your account. Daily is much
better than annually. - ✔✔Compounding frequency
These combine several student loans into one bigger loan from a single lender,
which is then used to pay off
the balances on the other loans. - ✔✔Consilidation Loans
When a product or service is illegally used to deceive you into sending money or
signing up with a phony
service. Consumer fraud scams frequently start with a fake email, letter or
phone call. - ✔✔Consumer Fraud
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