WISE FINANCIAL LITERACY CERTIFICATION
PRACTICE EXAM WITH CORRECT ACTUAL
QUESTIONS AND CORRECTLY WELL
DEFINED ANSWERS LATEST 2025 ALREADY
GRADED A+
Question : In which situation is a corporation most likely to call (buy back) a
bond?
A: Its stock prices has fallen from $52 to $20 a share.
B: It issued bonds at a 7.5% interest rate, but its current corporate bonds are
now being issued at a 5% rate.
C: It is planning to issue more stock.
D: It wants to diversify its public offerings. - ANSWERS-Correct Answer B: It
issued bonds at a 7.5% interest rate, but its current corporate bonds are now
being issued at a 5% rate.
,Question : A cash card generally:
A: Can be used in the same way that someone uses a check to pay bills by mail
B: Is purchased with a specific amount of money that can be used to pay for
goods or services
C: Is the same as a credit card which means you can use it to pay the minimum
on a bill
D: Is the same as a debit card and is always linked to a specific checking account
- ANSWERS-B. is purchased with a specific amount of money that can be used to
pay goods or services.
Question : Which of the following statements is usually true about individuals
who are financially literate?
A: They have high debt and low savings
B: They understand the basics of personal finance and money management
C: They almost always choose stocks and bonds that increase in value
D: They achieve all of their financial goals - ANSWERS-B. They understand the
basics of personal finance and money management
The interest earned on United States Series EE Savings Bonds is
, A: exempt from state and local taxes.
B: paid in a lump sum at the time the face value on the bond is reached.
C: equal to the money paid to purchase it. - ANSWERS-A: exempt from state
and local taxes.
Buying a treasury bill (T-bill) is best for investors who are looking for
A: a place to invest between $100-$500.
B: a secure, low risk investment.
C: a higher yield on their investment than corporate bonds offer.
D: an investment that matures in 10-30 years. - ANSWERS-B: a secure, low, risk
investment.
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
A: investor will pay only $5000 for the shares.
B: investor is buying 2000 shares.
C: brokerage firm is lending the investor 50% of the money.
D: brokerage firm will own 50% of the 1000 shares of stock that were
purchased. - ANSWERS-C: brokerage firm is lending the investor 50% of the
money
PRACTICE EXAM WITH CORRECT ACTUAL
QUESTIONS AND CORRECTLY WELL
DEFINED ANSWERS LATEST 2025 ALREADY
GRADED A+
Question : In which situation is a corporation most likely to call (buy back) a
bond?
A: Its stock prices has fallen from $52 to $20 a share.
B: It issued bonds at a 7.5% interest rate, but its current corporate bonds are
now being issued at a 5% rate.
C: It is planning to issue more stock.
D: It wants to diversify its public offerings. - ANSWERS-Correct Answer B: It
issued bonds at a 7.5% interest rate, but its current corporate bonds are now
being issued at a 5% rate.
,Question : A cash card generally:
A: Can be used in the same way that someone uses a check to pay bills by mail
B: Is purchased with a specific amount of money that can be used to pay for
goods or services
C: Is the same as a credit card which means you can use it to pay the minimum
on a bill
D: Is the same as a debit card and is always linked to a specific checking account
- ANSWERS-B. is purchased with a specific amount of money that can be used to
pay goods or services.
Question : Which of the following statements is usually true about individuals
who are financially literate?
A: They have high debt and low savings
B: They understand the basics of personal finance and money management
C: They almost always choose stocks and bonds that increase in value
D: They achieve all of their financial goals - ANSWERS-B. They understand the
basics of personal finance and money management
The interest earned on United States Series EE Savings Bonds is
, A: exempt from state and local taxes.
B: paid in a lump sum at the time the face value on the bond is reached.
C: equal to the money paid to purchase it. - ANSWERS-A: exempt from state
and local taxes.
Buying a treasury bill (T-bill) is best for investors who are looking for
A: a place to invest between $100-$500.
B: a secure, low risk investment.
C: a higher yield on their investment than corporate bonds offer.
D: an investment that matures in 10-30 years. - ANSWERS-B: a secure, low, risk
investment.
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
A: investor will pay only $5000 for the shares.
B: investor is buying 2000 shares.
C: brokerage firm is lending the investor 50% of the money.
D: brokerage firm will own 50% of the 1000 shares of stock that were
purchased. - ANSWERS-C: brokerage firm is lending the investor 50% of the
money
