WISE FINANCIAL LITERACY TEST EXAM QUESTIONS
COMPLETE SOLUTIONS WITH
2025/2026
/
A man budgeted $200 a month for clothing. This month the man spent
$150 on clothing therefore that budget item is considered to have: -
ANSWER>>>a budget variance
One of the benefits of holding an investment for over a year rather than
selling it in less than a year is that the: - ANSWER>>>capital gains on the
investment will be taxed at a lower rate
A person complains about how expensive it is to be a cigarette smoker.
One of the reasons cigarettes are so expensive is that: - ANSWER>>>the
government imposes an excise tax on them
A good example of a well-stated financial goal is: - ANSWER>>>Pay off
$5,000 in credit card debt in two years
Money set aside to grow is typically called: - ANSWER>>>savings or
investments
Expenditures that remain constant from one time period to another are: -
ANSWER>>>fixed expenses
Jane saw a breakfast cereal being advertised on TV and insisted that her
mother purchase this cereal. This is an example of advertising's: -
ANSWER >>>power of persuasion in creating demand
Which of the following will help you the least in managing your money? -
, ANSWER >>>get advice from your friends
A stock broker or financial consultant: - ANSWER>>>Gives financial advice
to clients
A company offers a defined-contribution pension plan which means that
upon retirement the employee will receive: - ANSWER >>>The total amount
of money contributed plus investments earnings
After five years of owning a Roth Individual Retirement Account (IRA), a
person wants to buy his first home, the person can withdraw money from
the Roth IRA: - ANSWER>>>tax and penalty free
Before the Kiss Corporation can issue stocks or bonds, it must register the
issue with: - ANSWER >>>Securities and Exchange Commission (SEC)
What is the largest equities market in the world? - ANSWER>>>New York
Stock Exchange (NYSE)
A pharmacy is to drugs as the American Stock Exchange is to: -
ANSWER>>>securities
The interest earned on United States Series EE Savings bond is: -
ANSWER >>>exempt from state and local taxes
A person owns a stock that pays a $2.00 a share dividend. If the person
chooses to reinvest that dividend, this means that the $2.00 will go toward
buying: - ANSWER>>>more of the same stock
Using a brokerage firm, a qualified investor buys 1000 shares of a common
stock at $50 a share on 50% margin. This means that the: -
ANSWER >>>brokerage firm is lending the investor 50% of the money.
COMPLETE SOLUTIONS WITH
2025/2026
/
A man budgeted $200 a month for clothing. This month the man spent
$150 on clothing therefore that budget item is considered to have: -
ANSWER>>>a budget variance
One of the benefits of holding an investment for over a year rather than
selling it in less than a year is that the: - ANSWER>>>capital gains on the
investment will be taxed at a lower rate
A person complains about how expensive it is to be a cigarette smoker.
One of the reasons cigarettes are so expensive is that: - ANSWER>>>the
government imposes an excise tax on them
A good example of a well-stated financial goal is: - ANSWER>>>Pay off
$5,000 in credit card debt in two years
Money set aside to grow is typically called: - ANSWER>>>savings or
investments
Expenditures that remain constant from one time period to another are: -
ANSWER>>>fixed expenses
Jane saw a breakfast cereal being advertised on TV and insisted that her
mother purchase this cereal. This is an example of advertising's: -
ANSWER >>>power of persuasion in creating demand
Which of the following will help you the least in managing your money? -
, ANSWER >>>get advice from your friends
A stock broker or financial consultant: - ANSWER>>>Gives financial advice
to clients
A company offers a defined-contribution pension plan which means that
upon retirement the employee will receive: - ANSWER >>>The total amount
of money contributed plus investments earnings
After five years of owning a Roth Individual Retirement Account (IRA), a
person wants to buy his first home, the person can withdraw money from
the Roth IRA: - ANSWER>>>tax and penalty free
Before the Kiss Corporation can issue stocks or bonds, it must register the
issue with: - ANSWER >>>Securities and Exchange Commission (SEC)
What is the largest equities market in the world? - ANSWER>>>New York
Stock Exchange (NYSE)
A pharmacy is to drugs as the American Stock Exchange is to: -
ANSWER>>>securities
The interest earned on United States Series EE Savings bond is: -
ANSWER >>>exempt from state and local taxes
A person owns a stock that pays a $2.00 a share dividend. If the person
chooses to reinvest that dividend, this means that the $2.00 will go toward
buying: - ANSWER>>>more of the same stock
Using a brokerage firm, a qualified investor buys 1000 shares of a common
stock at $50 a share on 50% margin. This means that the: -
ANSWER >>>brokerage firm is lending the investor 50% of the money.
