Wise Financial Literacy Test (Practice Test)

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 budget should include a person's: credit score, net income and expenses, investment portfolio, gross income and assets

Back

net income and expenses

Front

A benefit of buying term life insurance as opposed to whole life insurance is that term insurance usually:

Back

offers a greater amount of insurance coverage for a specific period of time at a lower cost

Front

If you make a cash deposit for $10,000 or more in your bank account, your bank is obligated to notify:

Back

the US Treasury Dept.

Front

Sometimes a vendor or creditor may ask you to pay a bill with a certified check; you will have to get a certified check from your local:

Back

bank or credit union

Front

When making a list of your liabilities a person should include: stock investments, checking account balances, mortgage loan, money market account balance

Back

mortgage loan

Front

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

Back

check the report for errors

Front

Money in the form of cash or currency acts as a:

Back

medium of exchange

Front

When you receive an inheritance or money from a life insurance policy you are the:

Back

beneficiary

Front

A woman is offered two jobs; one with a salary of $27,000 plus benefits and the other at $30,000 with no benefits. It would be a wise financial decision for her to take the:

Back

$27,000 job, if the benefits package is worth more than the $3,000 difference in salary