WISE CERTIFICATION COMPREHENSIVE EXAM
2026 QUESTIONS WITH CORRECT ANSWERS
◉ pay yourself first. Answer: automatically route money from
paycheck to savings (before paying bills)
◉ CD: What is it and what happens if you cash it before maturity?.
Answer: it is a time deposit offered at financial institutions - penalty
if cashed before maturity
◉ Institutions that give loans. Answer: banks, credit unions,
pawnshops, finance companies, payday lenders, tax preparers
◉ Which institution(s) charge the highest interest rates on loans.
Answer: pawnshops, payday lenders, tax refund lenders, finance
companies
◉ What is a credit union and the advantage of using a credit union:.
Answer: member owned co-operative financial institution -
advantage is lower interest rates on loans
◉ Overdraft protection (opt in regulation) and how it works:.
Answer: Overdraft protection is a feature offered by banks to keep
your checking account from overdrafting when you write a check or
,swipe your debit card but don't have enough money in your account.
It is a loan that is paid back.
◉ Compound Interest:. Answer: interest added to principal - interest
earned on interest
◉ Time value of money:. Answer: is calculated by value of money
with a given amount of interest earned over a period of time; the
longer the time you keep your money invested, the more interest
you will earn. FUTURE!!!!
◉ Liquid financial products vs. products that are less liquid:.
Answer: savings and checking accounts are most liquid, certificate of
deposit and money market accounts are less liquid
◉ rule of 72. Answer: -how long (many years) will it take to double
an investment
-you can calculate how long it will take your money to double at a
given interest rate, if you reinvest the earnings
72 / the Percentage Rate of Return= The Number of Years Needed to
Double Your Money
, -can also be used to calculate what interest rate you would need to
receive in order for your investment to double in a specified period
of time.
72 / the Number of Years= The Percentage Rate of Return Needed to
Double Your Money
◉ Reconciling a Checking account-- why and when:. Answer: to view
what activity has occurred in your account. Keep current with your
check register to know what your current balance is at all times.
When you receive your bank statement, you reconcile your check
register against the statement to be sure no errors have been made
and to record any bank fees and/or interest earned in your register
(checks ans balances)
◉ Repayment of student loans:. Answer: 6 month grace period (after
leaving school) before you start making payments.
◉ Tax anticipation loans:. Answer: A refund anticipation loan (RAL)
is a short-term consumer loan secured by a taxpayer's expected tax
refund
◉ Advantages of a savings account:. Answer: liquid, compounding
interest
2026 QUESTIONS WITH CORRECT ANSWERS
◉ pay yourself first. Answer: automatically route money from
paycheck to savings (before paying bills)
◉ CD: What is it and what happens if you cash it before maturity?.
Answer: it is a time deposit offered at financial institutions - penalty
if cashed before maturity
◉ Institutions that give loans. Answer: banks, credit unions,
pawnshops, finance companies, payday lenders, tax preparers
◉ Which institution(s) charge the highest interest rates on loans.
Answer: pawnshops, payday lenders, tax refund lenders, finance
companies
◉ What is a credit union and the advantage of using a credit union:.
Answer: member owned co-operative financial institution -
advantage is lower interest rates on loans
◉ Overdraft protection (opt in regulation) and how it works:.
Answer: Overdraft protection is a feature offered by banks to keep
your checking account from overdrafting when you write a check or
,swipe your debit card but don't have enough money in your account.
It is a loan that is paid back.
◉ Compound Interest:. Answer: interest added to principal - interest
earned on interest
◉ Time value of money:. Answer: is calculated by value of money
with a given amount of interest earned over a period of time; the
longer the time you keep your money invested, the more interest
you will earn. FUTURE!!!!
◉ Liquid financial products vs. products that are less liquid:.
Answer: savings and checking accounts are most liquid, certificate of
deposit and money market accounts are less liquid
◉ rule of 72. Answer: -how long (many years) will it take to double
an investment
-you can calculate how long it will take your money to double at a
given interest rate, if you reinvest the earnings
72 / the Percentage Rate of Return= The Number of Years Needed to
Double Your Money
, -can also be used to calculate what interest rate you would need to
receive in order for your investment to double in a specified period
of time.
72 / the Number of Years= The Percentage Rate of Return Needed to
Double Your Money
◉ Reconciling a Checking account-- why and when:. Answer: to view
what activity has occurred in your account. Keep current with your
check register to know what your current balance is at all times.
When you receive your bank statement, you reconcile your check
register against the statement to be sure no errors have been made
and to record any bank fees and/or interest earned in your register
(checks ans balances)
◉ Repayment of student loans:. Answer: 6 month grace period (after
leaving school) before you start making payments.
◉ Tax anticipation loans:. Answer: A refund anticipation loan (RAL)
is a short-term consumer loan secured by a taxpayer's expected tax
refund
◉ Advantages of a savings account:. Answer: liquid, compounding
interest
