Wise Financial Literacy UPDATED ACTUAL QUESTIONS
WITH CORRECT ANSWERS
Question 1.
In order to get spending under control, a person should first
ANSWER
create a budget of current income and expenses.
Question 2.
Comparison shopping for a car is necessary because
ANSWER
the price for the car can vary a great deal.
Question 3.
Financial planners generally stress the importance of starting to save and invest early because
ANSWER
of the power of compounding and appreciation.
Question 4.
An important feature of a good financial goal is that the goal
ANSWER
has a specific time frame.
Question 5.
Purchasing power decreases and it costs more money to buy more good when there is an
ANSWER
inflation.
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, Question 6.
What strategy can help a person achieve her goal to buy a house?
ANSWER
Following a budget that allows for saving.
Question 7.
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?
ANSWER
Is the new cell phone a need or want.
Question 8.
Which of the following quotes is sound financial advice?
ANSWER
"A penny saved is a penny earned."
Question 9.
Fixed expenses include
ANSWER
rent.
Question 10.
Mandatory deductions from a person's paycheck include
ANSWER
federal withholding tax and FICA.
Question 11.
When should a person begin contributing to a retirement plan?
ANSWER
As young as possible.
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WITH CORRECT ANSWERS
Question 1.
In order to get spending under control, a person should first
ANSWER
create a budget of current income and expenses.
Question 2.
Comparison shopping for a car is necessary because
ANSWER
the price for the car can vary a great deal.
Question 3.
Financial planners generally stress the importance of starting to save and invest early because
ANSWER
of the power of compounding and appreciation.
Question 4.
An important feature of a good financial goal is that the goal
ANSWER
has a specific time frame.
Question 5.
Purchasing power decreases and it costs more money to buy more good when there is an
ANSWER
inflation.
1/9
, Question 6.
What strategy can help a person achieve her goal to buy a house?
ANSWER
Following a budget that allows for saving.
Question 7.
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?
ANSWER
Is the new cell phone a need or want.
Question 8.
Which of the following quotes is sound financial advice?
ANSWER
"A penny saved is a penny earned."
Question 9.
Fixed expenses include
ANSWER
rent.
Question 10.
Mandatory deductions from a person's paycheck include
ANSWER
federal withholding tax and FICA.
Question 11.
When should a person begin contributing to a retirement plan?
ANSWER
As young as possible.
2/9
