WISE Financial Literacy Certification Practice multiple choice Questions

Wise Financial Literacy Certification m m m




Practice Multiple Choice Questions
m m mm m




Question n: nTo nqualify nfor na nFederal nHousing nAdministration n(FHA) nloan, na nperson
m m m m m m m m m m m m




nmust ngenerally n
m m m




m n
m nA: nhave nat nleast na nhigh nschool ndiploma. n
m m m m m m m m




m nB: nhave none-quarter nof nthe ncost nof nthe nhome
m m m m m m m m




m nfor na ndown-payment. n
m m m




m nC: nfulfill nincome nguidelines. n
m m m m




m nD: nprovide ntwo nindividuals nto nco-sign nthe nloan. n- n ncorrect nanswer-C: nfulfill
m m m m m m m m m m m m




m nincome nguidelines. m




A nhigh nschool nstudent nhas nbegun nto ninvestigate nthe nfield nof nfinance nas na ncareer
m m m m m m m m m m m m m m




nchoice. nIn ndeciding nabout nthe nfield, nthe nstudent nshould nfocus non nwhich nquestion
m m m m m m m m m m m m m




nfirst?
m




m n
m nA: nWill nI nfind na nbalance nbetween nfinancial nrewards nand npersonal nsatisfaction
m m m m m m m m m m m




m nfrom nwork? n m m




m nB: nHow nmany npeople ndo nI nknow nwho nwork nin nthis nfield? n
m m m m m m m m m m m m




m nC: nOnce nI ntrain nfor nthis narea, nhow nlong nbefore nI nwill nbe
m m m m m m m m m m m m




m nat nthe ntop nof nthe nfield? n
m m m m m m




m nD: nAre nthere npeople nin nthis nfield nwho nare ndissatisfied
m m m m m m m m m




m nwith ntheir njobs? n- n ncorrect nanswer-A: nWill nI nfind na nbalance nbetween nfinancial
m m m m m m m m m m m m m




m nrewards nand npersonal nsatisfaction nfrom nwork? m m m m m




A ntype nof nelectronic nfunds ntransfer n(EFT) nis: n
m m m m m m m m




m n
m nA: nA ntransaction nmade nwith na ncheck n
m m m m m m m




m nB: nA ndeposit nmade nwith na nbank nteller n
m m m m m m m m




m nC: nNot nwidely nused nby nconsumers n
m m m m m m




m nD: nAn nATM ntransaction n- n ncorrect nanswer-D: nAn nATM ntransaction
m m m m m m m m m m




A ncompany noffers na ndefined-contribution npension nplan nwhich nmeans nthat nupon
m m m m m m m m m m




nretirement nthe nemployee nwill nreceive
m m m m m




m n
m nA: none-half nof nthe nemployee's nlast nyear's nsalary. n
m m m m m m m m




m nB: nthe ntotal namount nof nmoney ncontributed nplus ninvestment
m m m m m m m m




m nearnings. n m




m nC: nan namount nof nmoney nbased nonly non nthe nlength nof ntime
m m m m m m m m m m m




m nthe nemployee nworked nfor nthe ncompany. n
m m m m m m

, m nD: na nspecified namount nof nmoney nbased ntotally non nthe nprofit
m m m m m m m m m m




m nearned nby nthe ncompany nwhile nthe nemployee nworked
m m m m m m m




m nthere. n- n ncorrect nanswer-B: nthe ntotal namount nof nmoney ncontributed nplus
m m m m m m m m m m m




m ninvestment nearnings. m




The ninterest nearned non nUnited nStates nSeries nEE nSavings nBonds nis n
m m m m m m m m m m m




m n
m nA: nexempt nfrom nstate nand nlocal ntaxes. n
m m m m m m m




m nB: npaid nin na nlump nsum nat nthe ntime nthe nface nvalue non nthe nbond nis nreached. n
m m m m m m m m m m m m m m m m m




m nC: nequal nto nthe nmoney npaid nto npurchase nit. n- n ncorrect nanswer-A: nexempt nfrom
m m m m m m m m m m m m m m




m nstate nand nlocal ntaxes. m m m




Buying na ntreasury nbill n(T-bill) nis nbest nfor ninvestors nwho nare nlooking nfor n
m m m m m m m m m m m m m




m n
m nA: na nplace nto ninvest nbetween n$100-$500. n
m m m m m m m




m nB: na nsecure, nlow nrisk ninvestment. n
m m m m m m




m nC: na nhigher nyield non ntheir ninvestment nthan ncorporate nbonds noffer. n
m m m m m m m m m m m




m nD: nan ninvestment nthat nmatures nin n10-30 nyears. n- n ncorrect nanswer-B: na nsecure,
m m m m m m m m m m m m m




m nlow, nrisk ninvestment.
m m




Using na nbrokerage nfirm, na nqualified ninvestor nbuys n1000 nshares nof na ncommon
m m m m m m m m m m m m




nstock nat n$50 na nshare non n50% nmargin. nThis nmeans nthat nthe n
m m m m m m m m m m m m m




m n
m nA: ninvestor nwill npay nonly n$5000 nfor nthe nshares. n
m m m m m m m m m




m nB: ninvestor nis nbuying n2000 nshares. n
m m m m m m




m nC: nbrokerage nfirm nis nlending nthe ninvestor n50% nof nthe nmoney. n
m m m m m m m m m m m




m nD: nbrokerage nfirm nwill nown n50% nof nthe n1000 nshares nof nstock nthat nwere
m m m m m m m m m m m m m




m npurchased. n- n ncorrect nanswer-C: nbrokerage nfirm nis nlending nthe ninvestor n50% nof m m m m m m m m m m m m




m nthe nmoney m




To ndetermine nthe ntime nvalue nof ndepositing n$100 nin na nsavings naccount, na nperson
m m m m m m m m m m m m m




nneeds nto nknow nthe ninterest nrate nand n
m m m m m m m m




m n
m nA: nher ntotal nincome. n
m m m m




m nB: nthe nrate nof ninflation. n
m m m m m




m nC: nwhether nthe naccount nis nFDIC nprotected. n
m m m m m m m




m nD: nwhether nthe nbank noffers noverdraft nprotection. n- n ncorrect nanswer-B: nthe nrate nof
m m m m m m m m m m m m m




m ninflation.


The namount na nlender ncharges nto nborrow nmoney nis ncalled nthe: n
m m m m m m m m m m m




m n
m nA: nPrincipal n
m m




m nB: nAnnual nPercentage nRate n(APR) n
m m m m m




m nC: nLoan nbalance n
m m m




m nD: nFinance ncharge n- n ncorrect nanswer-Correct nAnswer n: nD: nFinance ncharge
m m m m m m m m m m m




The ncost nto nuse nsomeone nelse's nmoney nfor na nperiod nof ntime nis ncalled nthe: n
m m m m m m m m m m m m m m m




m n
m nA: nInterest nrate nexpressed nas na npercentage n
m m m m m m m




m nB: nOpportunity ncost n
m m m




m nC: nMinimum npayment n
m m m




m nD: nInflation nrate n- n ncorrect nanswer-A: nInterest nrate nexpressed nas na npercentage
m m m m m m m m m m m m