WISE FINANCIAL LITERACY COMPLETE
EXAM REVIEW WITH FULL SOLUTIONS
●● Savings Account
Answer: Interest‑earning account for short‑term savings; may limit
withdrawals.
●● Money Market Account
Answer: Higher interest; requires larger minimum balance; limited
check‑writing.
●● Certificate of Deposit (CD)
Answer: Time‑locked deposit with fixed interest; penalties for early
withdrawal.
●● FDIC Insurance
Answer: Protects bank deposits up to $250,000 per depositor, per
institution.
●● NCUA Insurance
Answer: Protects credit union deposits up to $250,000.
●● Overdraft Protection
, Answer: Bank covers transactions when balance is negative; fees apply.
●● Direct Deposit
Answer: Employer sends net pay directly to your bank account.
●● Reconciliation
Answer: Comparing your records to bank statements to find errors or
fraud.
●● Wire Transfer
Answer: Fast, irreversible electronic transfer.
●● Certified Check
Answer: Bank verifies your signature and sets aside funds.
●● Cashier's Check
Answer: Check drawn from bank funds.
●● Money Order
Answer: Prepaid payment instrument; safer than cash.
●● Payday Loan
EXAM REVIEW WITH FULL SOLUTIONS
●● Savings Account
Answer: Interest‑earning account for short‑term savings; may limit
withdrawals.
●● Money Market Account
Answer: Higher interest; requires larger minimum balance; limited
check‑writing.
●● Certificate of Deposit (CD)
Answer: Time‑locked deposit with fixed interest; penalties for early
withdrawal.
●● FDIC Insurance
Answer: Protects bank deposits up to $250,000 per depositor, per
institution.
●● NCUA Insurance
Answer: Protects credit union deposits up to $250,000.
●● Overdraft Protection
, Answer: Bank covers transactions when balance is negative; fees apply.
●● Direct Deposit
Answer: Employer sends net pay directly to your bank account.
●● Reconciliation
Answer: Comparing your records to bank statements to find errors or
fraud.
●● Wire Transfer
Answer: Fast, irreversible electronic transfer.
●● Certified Check
Answer: Bank verifies your signature and sets aside funds.
●● Cashier's Check
Answer: Check drawn from bank funds.
●● Money Order
Answer: Prepaid payment instrument; safer than cash.
●● Payday Loan
