Wise Financial literacy UPDATED
Questions and CORRECT Answers
In order to get spending under control, a person should first - CORRECT ANSWER -
create a budget of current income and expenses.
Comparison shopping for a car is necessary because - CORRECT ANSWER - the price for
the car can vary a great deal.
Financial planners generally stress the importance of starting to save and invest early because -
CORRECT ANSWER - of the power of compounding and appreciation.
An important feature of a good financial goal is that the goal - CORRECT ANSWER - has
a specific time frame.
Purchasing power decreases and it costs more money to buy more good when there is an -
CORRECT ANSWER - inflation.
What strategy can help a person achieve her goal to buy a house? - CORRECT
ANSWER - Following a budget that allows for saving.
A college student has to live on a tight budget. Before making a decision to buy the newest cell
phone, which question should he ask himself first? - CORRECT ANSWER - Is the new
cell phone a need or want.
Which of the following quotes is sound financial advice? - CORRECT ANSWER - "A
penny saved is a penny earned."
Fixed expenses include - CORRECT ANSWER - rent.
, Mandatory deductions from a person's paycheck include - CORRECT ANSWER - federal
withholding tax and FICA.
When should a person begin contributing to a retirement plan? - CORRECT ANSWER -
As young as possible.
Which of the following is the source of income for most people aged 20-35? - CORRECT
ANSWER - Wages/salary
The U.S. government agency responsible for the collection and enforcement of federal taxed
known as - CORRECT ANSWER - U.S. Internal Revenue Service (IRS)
When a person has a balanced budget that includes savings then - CORRECT ANSWER -
total expenses + savings = total income
Why do financial advisers recommend that a person save at least 10% of each paycheck? -
CORRECT ANSWER - to build wealth
The "time value of money" means that - CORRECT ANSWER - money received today is
worth more than the same amount of money received in the future.
When a person receives a book store gift card, she can use it to - CORRECT ANSWER -
buy a book from that store
A person who dies will have his assets distributed as he wanted as long as he has - CORRECT
ANSWER - a will.
A person has assets worth $15,000 and loans totaling $5,000. Her net worth is - CORRECT
ANSWER - $10,000.
Questions and CORRECT Answers
In order to get spending under control, a person should first - CORRECT ANSWER -
create a budget of current income and expenses.
Comparison shopping for a car is necessary because - CORRECT ANSWER - the price for
the car can vary a great deal.
Financial planners generally stress the importance of starting to save and invest early because -
CORRECT ANSWER - of the power of compounding and appreciation.
An important feature of a good financial goal is that the goal - CORRECT ANSWER - has
a specific time frame.
Purchasing power decreases and it costs more money to buy more good when there is an -
CORRECT ANSWER - inflation.
What strategy can help a person achieve her goal to buy a house? - CORRECT
ANSWER - Following a budget that allows for saving.
A college student has to live on a tight budget. Before making a decision to buy the newest cell
phone, which question should he ask himself first? - CORRECT ANSWER - Is the new
cell phone a need or want.
Which of the following quotes is sound financial advice? - CORRECT ANSWER - "A
penny saved is a penny earned."
Fixed expenses include - CORRECT ANSWER - rent.
, Mandatory deductions from a person's paycheck include - CORRECT ANSWER - federal
withholding tax and FICA.
When should a person begin contributing to a retirement plan? - CORRECT ANSWER -
As young as possible.
Which of the following is the source of income for most people aged 20-35? - CORRECT
ANSWER - Wages/salary
The U.S. government agency responsible for the collection and enforcement of federal taxed
known as - CORRECT ANSWER - U.S. Internal Revenue Service (IRS)
When a person has a balanced budget that includes savings then - CORRECT ANSWER -
total expenses + savings = total income
Why do financial advisers recommend that a person save at least 10% of each paycheck? -
CORRECT ANSWER - to build wealth
The "time value of money" means that - CORRECT ANSWER - money received today is
worth more than the same amount of money received in the future.
When a person receives a book store gift card, she can use it to - CORRECT ANSWER -
buy a book from that store
A person who dies will have his assets distributed as he wanted as long as he has - CORRECT
ANSWER - a will.
A person has assets worth $15,000 and loans totaling $5,000. Her net worth is - CORRECT
ANSWER - $10,000.
