WISE Financial Literacy Test Review Questions and Answers | 100% Correct Answer | Grade A+

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 loa