WISE Financial Literacy EPF Test UPDATED ACTUAL Questions and CORRECT
Answers
If a person makes a deposit of $10,000 or US Treasury Department.
more into a bank account, the bank must
notify the*
US Treasury Department.
Federal Deposit Insurance Corporation.
(FDIC).
State Banking Commission.
Federal Reserve Board.
When James received his paycheck, he They typically charge high fees
planned to cash it at a check cashing store.
You advise him to cash it at his own bank if
possible. Why?
They typically require a two day waiting
period before giving cash
They typically charge high fees
There is likely to be a ceiling on the size of
the check he can cash
They generally require a co-signor
Troy has $50 a month transferred A savings plan
electronically from his checking account to
his savings account. This is an example of:
An installment payment
A savings plan
transaction
A debit card transaction
, What action should a person take who Decide how much money will be needed and then place 1/12th of that amount in a
must make a tuition payment at the end of separate account each month.
August each year?
Decide how much money will be needed
and then place 1/12th of that amount in a
separate account each month.
Divide the total amount of money that will
be needed into 12 equal parts and invest
that amount in stocks.
Obtain a short- term collateralized loan for
the needed amount of money.
Plan to open a new credit card account
that will be used to charge the needed
amount of money.
The best reason for depositing money in a Money deposited in savings accounts are F.D.I.C. insured
bank or credit union savings account
instead of keeping your money "under the
mattress" is that:
Money deposited in savings accounts are
F.D.I.C. insured
Most savings accounts earn a guaranteed
rate of interest
Most savings accounts come with a free
credit card
Money in a savings account can be
accessed any time during the day or night
Which financial product may pay a Common stock
dividend?
Savings account
Money market account
Certificate of deposit
Common stock
How can individuals be prepared for losing Save at least three months of income
their job or having a large medical
expense?
Maintain a checking account with sufficient
funds
Pay credit card bills on time
Prepare a budget
Save at least three months of income
The term used to describe the ease and Liquidity
speed with which you can convert savings
or an investment to cash is:
Convertibility
Principal
Liquidity
Rate of return
Answers
If a person makes a deposit of $10,000 or US Treasury Department.
more into a bank account, the bank must
notify the*
US Treasury Department.
Federal Deposit Insurance Corporation.
(FDIC).
State Banking Commission.
Federal Reserve Board.
When James received his paycheck, he They typically charge high fees
planned to cash it at a check cashing store.
You advise him to cash it at his own bank if
possible. Why?
They typically require a two day waiting
period before giving cash
They typically charge high fees
There is likely to be a ceiling on the size of
the check he can cash
They generally require a co-signor
Troy has $50 a month transferred A savings plan
electronically from his checking account to
his savings account. This is an example of:
An installment payment
A savings plan
transaction
A debit card transaction
, What action should a person take who Decide how much money will be needed and then place 1/12th of that amount in a
must make a tuition payment at the end of separate account each month.
August each year?
Decide how much money will be needed
and then place 1/12th of that amount in a
separate account each month.
Divide the total amount of money that will
be needed into 12 equal parts and invest
that amount in stocks.
Obtain a short- term collateralized loan for
the needed amount of money.
Plan to open a new credit card account
that will be used to charge the needed
amount of money.
The best reason for depositing money in a Money deposited in savings accounts are F.D.I.C. insured
bank or credit union savings account
instead of keeping your money "under the
mattress" is that:
Money deposited in savings accounts are
F.D.I.C. insured
Most savings accounts earn a guaranteed
rate of interest
Most savings accounts come with a free
credit card
Money in a savings account can be
accessed any time during the day or night
Which financial product may pay a Common stock
dividend?
Savings account
Money market account
Certificate of deposit
Common stock
How can individuals be prepared for losing Save at least three months of income
their job or having a large medical
expense?
Maintain a checking account with sufficient
funds
Pay credit card bills on time
Prepare a budget
Save at least three months of income
The term used to describe the ease and Liquidity
speed with which you can convert savings
or an investment to cash is:
Convertibility
Principal
Liquidity
Rate of return
