Wise Financial Literacy Practice Test
UPDATED ACTUAL Questions and
CORRECT Answers
If a person makes a deposit of $10,000 or more into a bank account, the bank must notify the -
CORRECT ANSWER - A: US Treasury Department. In order to track large deposits, the
federal government requires that deposits of $10,000 or more be reported to the Treasury
Department.
Banks use savings account deposits to: - CORRECT ANSWER - C: Give loans to
consumers and businesses. The basic functions of banks and credit unions are to be an
intermediary between savers and borrowers.
Which financial product may pay a dividend? - CORRECT ANSWER - D: Common
stock. All of these types of accounts and financial products except for common stock earn
interest.
Margaret wants to store a valuable coin collection and important papers. Generally, consumers
should: - CORRECT ANSWER - B: Rent a safe deposit box for their valuables. Bank
customers can rent safe deposit boxes from the bank.
What action should a person take who must make a tuition payment at the end of August each
year? - CORRECT ANSWER - A: Decide how much money will be needed and then
place 1/12th of that amount in a separate account each month. The best way to save in order to
make a yearly purchase, in this case a tuition payment,
A bank Certificate of Deposit is a - CORRECT ANSWER - B: Savings instrument that
requires a deposit for a period of time during which there is a penalty for withdrawals. A
certificate of deposit (CD) is a savings instrument that requires a deposit for a period of time
(term) during which the saver cannot withdraw money from the plan without a penalty.
UPDATED ACTUAL Questions and
CORRECT Answers
If a person makes a deposit of $10,000 or more into a bank account, the bank must notify the -
CORRECT ANSWER - A: US Treasury Department. In order to track large deposits, the
federal government requires that deposits of $10,000 or more be reported to the Treasury
Department.
Banks use savings account deposits to: - CORRECT ANSWER - C: Give loans to
consumers and businesses. The basic functions of banks and credit unions are to be an
intermediary between savers and borrowers.
Which financial product may pay a dividend? - CORRECT ANSWER - D: Common
stock. All of these types of accounts and financial products except for common stock earn
interest.
Margaret wants to store a valuable coin collection and important papers. Generally, consumers
should: - CORRECT ANSWER - B: Rent a safe deposit box for their valuables. Bank
customers can rent safe deposit boxes from the bank.
What action should a person take who must make a tuition payment at the end of August each
year? - CORRECT ANSWER - A: Decide how much money will be needed and then
place 1/12th of that amount in a separate account each month. The best way to save in order to
make a yearly purchase, in this case a tuition payment,
A bank Certificate of Deposit is a - CORRECT ANSWER - B: Savings instrument that
requires a deposit for a period of time during which there is a penalty for withdrawals. A
certificate of deposit (CD) is a savings instrument that requires a deposit for a period of time
(term) during which the saver cannot withdraw money from the plan without a penalty.
