©JASONMcCONNELL 2024/2025 ALL RIGHTS RESERVED 1/28/2025.
WISE & Everfi Financial Literacy Test
Review Questions With Correct Answers
100% Verified.
A tax form filled out by an individual and filed with the IRS that determines the amount of
income tax owed in a single year. - Answer✔1040
A retirement account offered through an employer, where an employee can contribute money
from his or her
paycheck before or after taxes. - Answer✔401(k)
A retirement account similar to a 401(k) plan, but offered by non-profit organizations, like
universities or
charitable organizations. - Answer✔403(b)
A savings plan offering tax benefits that can be used for any qualified educational expenses. -
Answer✔529 college saving plan
Property owned by an individual or organization that has some value. Can refer to physical
items (like a house
or car) or to intangible items (like a stock or bond). - Answer✔Asset
A degree granted after two years of study, often by a community or junior college. -
Answer✔Associate's degree
A payment type similar to a debit card that allows you to make electronic purchases but
requires that you
enter a PIN (Personal Identification Number) for any transaction. - Answer✔ATM Card
Another name for the interest rate charged on the balance of a credit card. - Answer✔Annual
Percentage Rate (APR)
A type of insurance that protects a policyholder in the case of a car accident. Most states
require it by law. - Answer✔Auto insurance
1|Page
, ©JASONMcCONNELL 2024/2025 ALL RIGHTS RESERVED 1/28/2025.
A degree awarded by a college or university for completing four years of undergraduate
studies. - Answer✔Bachelor's degree
The total amount of money in a banking account at any given time. - Answer✔Balance
A transfer of your existing credit card balance to another credit card. Balance transfers are
typically used when
a consumer wants to transfer their credit card debt onto a card with a lower interest rate. -
Answer✔Balance Transfer
A bond is basically a loan, except that in this case, you're the lender. When you buy a bond, you
loan an
amount of money to the organization issuing the bond at a certain interest rate for a certain
period of time.
You are paid interest from this loan at regular periods, and then, when the bond matures, you
get back your
initial investment plus any additional interest. Treasury and municipal bonds are specific types
of bonds. - Answer✔Bonds
A budget is a plan of how you will spend the money that you make or receive. -
Answer✔Budget
A loan of cash you obtain with a credit card. - Answer✔Cash Advance
A type of savings vehicle in which you put your money away for a certain amount of time, called
a term, to
allow your principal to earn interest. - Answer✔Certificate of deposit
A payment type that works just like credit cards except the balance must be paid in full every
month. - Answer✔Charge Card
A claim is the request you make to your insurance company for payment of the benefits
allowed by your
coverage. For instance, if you receive a bill for repairs made to your car, you might submit a
claim to your auto
insurance company to request they pay the bill for you. - Answer✔Claim
Compound interest is interest that's generated not only from the money you put into an
account, but also
2|Page
, ©JASONMcCONNELL 2024/2025 ALL RIGHTS RESERVED 1/28/2025.
from the interest you make on that money. In other words, with compound interest, you earn
interest on your
interest. - Answer✔Compound Interest
The number of compounding periods in one year. The greater the compounding frequency, the
more often
your interest is calculated and added back into your account. Daily is much better than
annually. - Answer✔Compounding frequency
These combine several student loans into one bigger loan from a single lender, which is then
used to pay off
the balances on the other loans. - Answer✔Consilidation Loans
When a product or service is illegally used to deceive you into sending money or signing up with
a phony
service. Consumer fraud scams frequently start with a fake email, letter or phone call. -
Answer✔Consumer Fraud
A fixed fee that an individual pays for specific medical services, like a visit to the doctor's office.
- Answer✔Co-Pay
Your coverage refers to the range of protection you are eligible to receive from an insurance
plan. Insurance
plans can have different coverage even if they're the same type of insurance -
Answer✔Coverage
Credit bureaus, also called credit agencies or credit reporting agencies, are companies that
collect credit
information about individuals. They then calculate a credit score for each individual based on
this information.
Note that credit bureaus are private, for- profit businesses-they are not part of the government,
though they
are overseen by various government agencies. In the United States, the three major credit
bureaus are
Equifax, Experian, and TransUnion. - Answer✔Credit Bureaus
A credit card is a payment type that does not automatically draw money from your account.
Instead, it
3|Page
WISE & Everfi Financial Literacy Test
Review Questions With Correct Answers
100% Verified.
A tax form filled out by an individual and filed with the IRS that determines the amount of
income tax owed in a single year. - Answer✔1040
A retirement account offered through an employer, where an employee can contribute money
from his or her
paycheck before or after taxes. - Answer✔401(k)
A retirement account similar to a 401(k) plan, but offered by non-profit organizations, like
universities or
charitable organizations. - Answer✔403(b)
A savings plan offering tax benefits that can be used for any qualified educational expenses. -
Answer✔529 college saving plan
Property owned by an individual or organization that has some value. Can refer to physical
items (like a house
or car) or to intangible items (like a stock or bond). - Answer✔Asset
A degree granted after two years of study, often by a community or junior college. -
Answer✔Associate's degree
A payment type similar to a debit card that allows you to make electronic purchases but
requires that you
enter a PIN (Personal Identification Number) for any transaction. - Answer✔ATM Card
Another name for the interest rate charged on the balance of a credit card. - Answer✔Annual
Percentage Rate (APR)
A type of insurance that protects a policyholder in the case of a car accident. Most states
require it by law. - Answer✔Auto insurance
1|Page
, ©JASONMcCONNELL 2024/2025 ALL RIGHTS RESERVED 1/28/2025.
A degree awarded by a college or university for completing four years of undergraduate
studies. - Answer✔Bachelor's degree
The total amount of money in a banking account at any given time. - Answer✔Balance
A transfer of your existing credit card balance to another credit card. Balance transfers are
typically used when
a consumer wants to transfer their credit card debt onto a card with a lower interest rate. -
Answer✔Balance Transfer
A bond is basically a loan, except that in this case, you're the lender. When you buy a bond, you
loan an
amount of money to the organization issuing the bond at a certain interest rate for a certain
period of time.
You are paid interest from this loan at regular periods, and then, when the bond matures, you
get back your
initial investment plus any additional interest. Treasury and municipal bonds are specific types
of bonds. - Answer✔Bonds
A budget is a plan of how you will spend the money that you make or receive. -
Answer✔Budget
A loan of cash you obtain with a credit card. - Answer✔Cash Advance
A type of savings vehicle in which you put your money away for a certain amount of time, called
a term, to
allow your principal to earn interest. - Answer✔Certificate of deposit
A payment type that works just like credit cards except the balance must be paid in full every
month. - Answer✔Charge Card
A claim is the request you make to your insurance company for payment of the benefits
allowed by your
coverage. For instance, if you receive a bill for repairs made to your car, you might submit a
claim to your auto
insurance company to request they pay the bill for you. - Answer✔Claim
Compound interest is interest that's generated not only from the money you put into an
account, but also
2|Page
, ©JASONMcCONNELL 2024/2025 ALL RIGHTS RESERVED 1/28/2025.
from the interest you make on that money. In other words, with compound interest, you earn
interest on your
interest. - Answer✔Compound Interest
The number of compounding periods in one year. The greater the compounding frequency, the
more often
your interest is calculated and added back into your account. Daily is much better than
annually. - Answer✔Compounding frequency
These combine several student loans into one bigger loan from a single lender, which is then
used to pay off
the balances on the other loans. - Answer✔Consilidation Loans
When a product or service is illegally used to deceive you into sending money or signing up with
a phony
service. Consumer fraud scams frequently start with a fake email, letter or phone call. -
Answer✔Consumer Fraud
A fixed fee that an individual pays for specific medical services, like a visit to the doctor's office.
- Answer✔Co-Pay
Your coverage refers to the range of protection you are eligible to receive from an insurance
plan. Insurance
plans can have different coverage even if they're the same type of insurance -
Answer✔Coverage
Credit bureaus, also called credit agencies or credit reporting agencies, are companies that
collect credit
information about individuals. They then calculate a credit score for each individual based on
this information.
Note that credit bureaus are private, for- profit businesses-they are not part of the government,
though they
are overseen by various government agencies. In the United States, the three major credit
bureaus are
Equifax, Experian, and TransUnion. - Answer✔Credit Bureaus
A credit card is a payment type that does not automatically draw money from your account.
Instead, it
3|Page
