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WISE FINANCIAL LITERACY TEST NEWEST
2024 ACTUAL EXAM COMPLETE 100
QUESTIONS AND CORRECT ANSWERS
(VERIFIED ANSWERS) |ALREADY GRADED A+
Money received today is worth more than the same amount of money
received sometime in the future is:
A: The Rule of 72
B: The time value of money
C: Not true
D: Investing - ANSWER- B: The time value of money
A person buys a flat screen, plasma, theater-like television. The person has homeowner's insurance. Why would it be appropriate to add a personal property floater to that insurance?
A: To reduce the premium on the homeowner's insurance.
B: To protect the person who owns the television from
liability for damages.
C: To show the insurance company a good faith investment
has been made.D: To cover the cost of replacement should the television 1 / 3
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get damaged or stolen. - ANSWER- D: To cover the cost of
replacement should the television get damaged or stolen.
For the past five years, a person has had a $20,000 whole life insurance policy that has a cash value clause. The person decides to surrender the policy. At the time of surrender, the person will receive
A: one-fifth of the $20,000 face value.
B: $20,000 less the premiums paid.
C: a calculated amount of money which includes the
premiums paid as well as the interest on that money.
D: a calculated amount of money that must be converted to
a term life insurance policy. - ANSWER- C: a calculated amount of
money which includes the premiums paid as well as the interest on that money.
If a person makes a deposit of $10,000 or more into a bank account, the bank must notify the
A: US Treasury Department.
B: Federal Deposit Insurance Corporation. (FDIC).
C: State Banking Commission.
D: Federal Reserve Board. - ANSWER- A: US Treasury Department.
Employees prefer direct deposits because: 2 / 3
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A: There is a small fee for the service
B: The danger of losing a paycheck is slightly reduced
C: The money is generally deposited in their checking account sooner
than it would be if they had to deposit it in person D: Direct deposits earn a higher rate of interest - ANSWER- C: The money is generally deposited in their checking account sooner than it would be if they had to deposit it in person
Which documents should be stored in a safe-deposit box?
A: Checkbook statements.
B: Copies of current and past budgets.
C: Current paycheck stubs.
D: Mortgage loan papers. - ANSWER- D: Mortgage loan papers.
A person has three credit cards with very large outstanding balances and is unable to make payments on any of them. Which action should the person take?
A: Notify a credit reporting agency in order to avoid a late
fee.
B: File for bankruptcy in order to maintain ones current
credit score.C: Notify the credit card companies in order to negotiate
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