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

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