Page 1 of 48
WISE FINANCIAL LITERACY FINAL EXAM PREP
2025/2026 ACCURATE QUESTIONS WITH CORRECT
DETAILED ANSWERS || 100% GUARANTEED PASS
<NEWEST VERSION>
Which of the following is not a recommended step in the Drive
Free method of purchasing a car?
Select one:
A. Plan your purchase in advance using the sinking fund method
of saving.
B. Start with an inexpensive car and gradually move up in car
value as your savings increases.
C. Explore new car dealerships for the best interest rate.
D. Place your savings in a mutual fund so that your money can
make more money. .......Answer.........C
,Page 2 of 48
Which of the following is a way that giving to others can benefit
you?
Select one:
A. Giving can help you build relationships.
B. Giving to others can give you a sense of purpose and
fulfillment.
C. Sacrificing your money, time and talents creates a legacy.
D. All of the above .......Answer.........D
The purpose of insurance is to:
Select one:
A. Develop a savings plan
B. Transfer financial risk
C. Provide an investment opportunity
D. All of the above .......Answer.........B
,Page 3 of 48
If you are a victim of identity theft, you are only responsible for
paying back half of the debt. (T/F) .......Answer.........False
Ron and Amie opened an educational savings account for their
daughter when she was born making a $5,000 initial investment.
They were unable to ever add anything else to the account.
What was the rate of return if they had $10,000 in the account
after 12 years? .......Answer.........6
Why is having a fully funded emergency fund so important when
it comes to your financial well-being?
Select one:
A. As long as you have a good-paying job, you really don't
need an emergency fund.
B. The purpose of an emergency fund is to set money aside for
unexpected financial emergencies and to provide a sense of
financial security.
, Page 4 of 48
C. The purpose of an emergency fund is to have money set aside
for large purchases, like vacations.
D. None of the above .......Answer.........B
ARM and balloon mortgages are good options for people with
bad credit. (T/F) .......Answer.........False
You'll only need to complete the FAFSA once during your college
education. (T/F) .......Answer.........False
Single stocks and mutual funds carry the same amount of risk.
(T/F) .......Answer.........False
Complete the missing portions of the 5 Foundations.
Please number each foundation and use one line per foundation.
.......Answer.........1. Get a $500 Emergency Fund
2. Get out of Debt
3. Pay cash for your Car
4. Pay Cash for College
WISE FINANCIAL LITERACY FINAL EXAM PREP
2025/2026 ACCURATE QUESTIONS WITH CORRECT
DETAILED ANSWERS || 100% GUARANTEED PASS
<NEWEST VERSION>
Which of the following is not a recommended step in the Drive
Free method of purchasing a car?
Select one:
A. Plan your purchase in advance using the sinking fund method
of saving.
B. Start with an inexpensive car and gradually move up in car
value as your savings increases.
C. Explore new car dealerships for the best interest rate.
D. Place your savings in a mutual fund so that your money can
make more money. .......Answer.........C
,Page 2 of 48
Which of the following is a way that giving to others can benefit
you?
Select one:
A. Giving can help you build relationships.
B. Giving to others can give you a sense of purpose and
fulfillment.
C. Sacrificing your money, time and talents creates a legacy.
D. All of the above .......Answer.........D
The purpose of insurance is to:
Select one:
A. Develop a savings plan
B. Transfer financial risk
C. Provide an investment opportunity
D. All of the above .......Answer.........B
,Page 3 of 48
If you are a victim of identity theft, you are only responsible for
paying back half of the debt. (T/F) .......Answer.........False
Ron and Amie opened an educational savings account for their
daughter when she was born making a $5,000 initial investment.
They were unable to ever add anything else to the account.
What was the rate of return if they had $10,000 in the account
after 12 years? .......Answer.........6
Why is having a fully funded emergency fund so important when
it comes to your financial well-being?
Select one:
A. As long as you have a good-paying job, you really don't
need an emergency fund.
B. The purpose of an emergency fund is to set money aside for
unexpected financial emergencies and to provide a sense of
financial security.
, Page 4 of 48
C. The purpose of an emergency fund is to have money set aside
for large purchases, like vacations.
D. None of the above .......Answer.........B
ARM and balloon mortgages are good options for people with
bad credit. (T/F) .......Answer.........False
You'll only need to complete the FAFSA once during your college
education. (T/F) .......Answer.........False
Single stocks and mutual funds carry the same amount of risk.
(T/F) .......Answer.........False
Complete the missing portions of the 5 Foundations.
Please number each foundation and use one line per foundation.
.......Answer.........1. Get a $500 Emergency Fund
2. Get out of Debt
3. Pay cash for your Car
4. Pay Cash for College
