WISE Financial Literacy Test Review
checking account - ANS-transfer money to others by use of checks or electronic
payments, access money directly by use of debit card, make deposits to and
withdrawals from the account
savings account - ANS-allow deposits and withdrawals within limits, limit access to
funds by check, help users earn interest on money kept in the account
Certificate of Deposit (CD) - ANS-holds money for a set amount of time, earns higher
rate of interest than savings accounts
money market account - ANS-requires a high minimum balance, earns higher rate of
interest than savings accounts, allows a limited number of checks to be written from it
savings bond - ANS-purchased from the government then sold back later for higher
amount
If a person makes a deposit of $10,000 or more into a bank account, the bank must
notify the - ANS-US Treasury Department
Which financial product typically pays the highest rate of interest? - ANS-certificate of
deposit
Which of the following is considered to be open-end credit? - ANS-department store
charge cards
When a person brings an item to a pawnshop to obtain cash, the transaction is
considered - ANS-a collateralized loan
New coins and currency make their way into the general economy, consumers and
businesses, through the distribution system of the - ANS-Federal Reserve System
One of the benefits of holding an investment for over a year rather than selling it in less
than a year is that the - ANS-capital gains on the investment will be taxed at a lower
rate
A person's debt ratio shows the relationship between debt and net worth. The lower the
ratio the - ANS-better off financially the person is
checking account - ANS-transfer money to others by use of checks or electronic
payments, access money directly by use of debit card, make deposits to and
withdrawals from the account
savings account - ANS-allow deposits and withdrawals within limits, limit access to
funds by check, help users earn interest on money kept in the account
Certificate of Deposit (CD) - ANS-holds money for a set amount of time, earns higher
rate of interest than savings accounts
money market account - ANS-requires a high minimum balance, earns higher rate of
interest than savings accounts, allows a limited number of checks to be written from it
savings bond - ANS-purchased from the government then sold back later for higher
amount
If a person makes a deposit of $10,000 or more into a bank account, the bank must
notify the - ANS-US Treasury Department
Which financial product typically pays the highest rate of interest? - ANS-certificate of
deposit
Which of the following is considered to be open-end credit? - ANS-department store
charge cards
When a person brings an item to a pawnshop to obtain cash, the transaction is
considered - ANS-a collateralized loan
New coins and currency make their way into the general economy, consumers and
businesses, through the distribution system of the - ANS-Federal Reserve System
One of the benefits of holding an investment for over a year rather than selling it in less
than a year is that the - ANS-capital gains on the investment will be taxed at a lower
rate
A person's debt ratio shows the relationship between debt and net worth. The lower the
ratio the - ANS-better off financially the person is
