W!se Financial Literacy Practice Test

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If a person makes a deposit of $10,000 or more into a bank account, the bank must notify the

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US Treasury Department

Front

The best suggestion for a friend writing a check for the first time is:

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Date the check because it is usually proof of payment.

Front

Which documents should be stored in a safe-deposit box? Checkbook statements, Copies of current and past budgets, Current paycheck stubs, Mortgage loan papers

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Mortgage loan papers

Front

The phrase used for putting money into a savings account is:

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Making a deposit

Front

When a person declares bankruptcy that fact will appear on the person's credit report

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for a 10 year period

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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? Options: Notify the credit reporting agency in order to avoid a late fee, File for bankruptcy in order to maintain ones current credit score, Notify the credit card companies in order to negotiate a new payment plan, Contact the Internal Revenue Service in order to avoid paying income tax this year

Back

Notify the credit card companies in order to negotiate a new payment plan

Front

Which of the following is considered to be open-end credit? A mortgage, A car loan, Department store charge card, Installment loans

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Department store charge card

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When a person brings an item to a pawnshop to obtain cash, the transaction is considered

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a collateralized loan

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What is meant by an uncollateralized loan?

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A personal loan without assets to cover the loan amount.

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What is a credit score?

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A number used to determine how much credit to extend to a person