Wise Financial Literacy Practice Test
QUESTIONS & 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.
QUESTIONS & 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.
