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WISE FINANCIAL LITERACY CERTIFICATION
EXAM (2025/2026) EXAM QUESTIONS AND
VERIFIED ANSWERS | GRADED A+
A company offers a defined-contribution pension plan which means
that upon retirement the employee will receive
A: one-half of the employee's last year's salary.
B: the total amount of money contributed plus investment
earnings.
C: an amount of money based only on the length of time
the employee worked for the company.
D: a specified amount of money based totally on the profit
earned by the company while the employee worked
there. - Correct-answer-B: the total amount of money contributed plus
investment earnings.
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The interest earned on United States Series EE Savings Bonds is
A: exempt from state and local taxes.
B: paid in a lump sum at the time the face value on the bond is
reached.
C: equal to the money paid to purchase it. - Correct-answer-A: exempt
from state and local taxes.
Buying a treasury bill (T-bill) is best for investors who are looking for
A: a place to invest between $100-$500.
B: a secure, low risk investment.
C: a higher yield on their investment than corporate bonds offer.
D: an investment that matures in 10-30 years. - Correct-answer-B: a
secure, low, risk investment.
Using a brokerage firm, a qualified investor buys 1000 shares of a
common stock at $50 a share on 50% margin. This means that the
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A: investor will pay only $5000 for the shares.
B: investor is buying 2000 shares.
C: brokerage firm is lending the investor 50% of the money.
D: brokerage firm will own 50% of the 1000 shares of stock that were
purchased. - Correct-answer-C: brokerage firm is lending the investor
50% of the money
To determine the time value of depositing $100 in a savings account, a
person needs to know the interest rate and
A: her total income.
B: the rate of inflation.
C: whether the account is FDIC protected.
D: whether the bank offers overdraft protection. - Correct-answer-B:
the rate of inflation.
The amount a lender charges to borrow money is called the:
A: Principal
WISE FINANCIAL LITERACY CERTIFICATION
EXAM (2025/2026) EXAM QUESTIONS AND
VERIFIED ANSWERS | GRADED A+
A company offers a defined-contribution pension plan which means
that upon retirement the employee will receive
A: one-half of the employee's last year's salary.
B: the total amount of money contributed plus investment
earnings.
C: an amount of money based only on the length of time
the employee worked for the company.
D: a specified amount of money based totally on the profit
earned by the company while the employee worked
there. - Correct-answer-B: the total amount of money contributed plus
investment earnings.
, P a g e |2
The interest earned on United States Series EE Savings Bonds is
A: exempt from state and local taxes.
B: paid in a lump sum at the time the face value on the bond is
reached.
C: equal to the money paid to purchase it. - Correct-answer-A: exempt
from state and local taxes.
Buying a treasury bill (T-bill) is best for investors who are looking for
A: a place to invest between $100-$500.
B: a secure, low risk investment.
C: a higher yield on their investment than corporate bonds offer.
D: an investment that matures in 10-30 years. - Correct-answer-B: a
secure, low, risk investment.
Using a brokerage firm, a qualified investor buys 1000 shares of a
common stock at $50 a share on 50% margin. This means that the
, P a g e |3
A: investor will pay only $5000 for the shares.
B: investor is buying 2000 shares.
C: brokerage firm is lending the investor 50% of the money.
D: brokerage firm will own 50% of the 1000 shares of stock that were
purchased. - Correct-answer-C: brokerage firm is lending the investor
50% of the money
To determine the time value of depositing $100 in a savings account, a
person needs to know the interest rate and
A: her total income.
B: the rate of inflation.
C: whether the account is FDIC protected.
D: whether the bank offers overdraft protection. - Correct-answer-B:
the rate of inflation.
The amount a lender charges to borrow money is called the:
A: Principal
