Wise Financial Literacy Test (Practice Test)

Front

A person who has a car can AVOID having the car repossessed by

Back

Making payments in full by the due date

Front

A person wrote a check for $800 but only had a balance of $700 in their checking account. The most likely reason the check did not bounce is because he/she has:

Back

Overdraft Protection

Front

In order to live on a monthly budget, a person should

Back

Be responsible and use restraint

Front

If a person has a credit score of 780, he/she is more likely to

Back

Be charged a lower interest rate for a loan

Front

The cost of borrowing money is commonly referred to as the

Back

Interest rate

Front

If a person decides to lend money to a friend, it is strongly advised that the person lending the money:

Back

Ask the borrower to sign an agreement explaining the terms of the loan

Front

Even though the United States is becoming a "cashless society", it is still important to have some cash at home because:

Back

the money can be used if ATM's become disabled during a disaster

Front

An advantage of requesting a free annual credit report is that the person can

Back

check the report for errors

Front

Why does a corporation issue bonds to the public?

Back

it wants to borrow money and is willing to pay interest on the loan

Front

A recent high school graduate was denied $5,000 car loan. The graduate has a better chance of being approved for a loan by: having a person with a good credit score cosign for the loan.

Back

having a person with a good credit score cosign for the loan