Wise
Financial
Literacy
Practice
Test
If
a
person
makes
a
deposit
of
$10,000
or
more
into
a
bank
account,
the
bank
must
notify
the
-
ANS-A:
US
Treasury
Department.
In
order
to
track
large
deposits,
the
federal
government
requires
that
deposits
of
$10,000
or
more
be
reported
to
the
Treasury
Department.
Banks
use
savings
account
deposits
to:
-
ANS-C:
Give
loans
to
consumers
and
businesses.
The
basic
functions
of
banks
and
credit
unions
are
to
be
an
intermediary
between
savers
and
borrowers.
Which
financial
product
may
pay
a
dividend?
-
ANS-D:
Common
stock.
All
of
these
types
of
accounts
and
financial
products
except
for
common
stock
earn
interest.
Margaret
wants
to
store
a
valuable
coin
collection
and
important
papers.
Generally ,
consumers
should:
-
ANS-B:
Rent
a
safe
deposit
box
for
their
valuables.
Bank
customers
can
rent
safe
deposit
boxes
from
the
bank.
What
action
should
a
person
take
who
must
make
a
tuition
payment
at
the
end
of
August
each
year?
-
ANS-A:
Decide
how
much
money
will
be
needed
and
then
place
1/12th
of
that
amount
in
a
separate
account
each
month.
The
best
way
to
save
in
order
to
make
a
yearly
purchase,
in
this
case
a
tuition
payment,
A
bank
Certificate
of
Deposit
is
a
-
ANS-B:
Savings
instrument
that
requires
a
deposit
for
a
period
of
time
during
which
there
is
a
penalty
for
withdrawals.
A
certificate
of
deposit
(CD)
is
a
savings
instrument
that
requires
a
deposit
for
a
period
of
time
(term)
during
which
the
saver
cannot
withdraw
money
from
the
plan
without
a
penalty .
The
phrase
used
for
putting
money
into
a
savings
account
is
-
ANS-C:
Making
a
deposit.
Putting
money
into
an
account
is
"making
a
deposit"
and
taking
money
out
is
"making
a
withdrawal."
Which
financial
product
has
the
most
predictable
income?
-
ANS-C:
Certificate
of
deposit.
Most
certificates
of
deposit
(CDs)
are
issued
with
an
interest
rate
that
is
fixed
at
a
specified
rate
for
the
entire
term
of
the
deposit.
Financial
Literacy
Practice
Test
If
a
person
makes
a
deposit
of
$10,000
or
more
into
a
bank
account,
the
bank
must
notify
the
-
ANS-A:
US
Treasury
Department.
In
order
to
track
large
deposits,
the
federal
government
requires
that
deposits
of
$10,000
or
more
be
reported
to
the
Treasury
Department.
Banks
use
savings
account
deposits
to:
-
ANS-C:
Give
loans
to
consumers
and
businesses.
The
basic
functions
of
banks
and
credit
unions
are
to
be
an
intermediary
between
savers
and
borrowers.
Which
financial
product
may
pay
a
dividend?
-
ANS-D:
Common
stock.
All
of
these
types
of
accounts
and
financial
products
except
for
common
stock
earn
interest.
Margaret
wants
to
store
a
valuable
coin
collection
and
important
papers.
Generally ,
consumers
should:
-
ANS-B:
Rent
a
safe
deposit
box
for
their
valuables.
Bank
customers
can
rent
safe
deposit
boxes
from
the
bank.
What
action
should
a
person
take
who
must
make
a
tuition
payment
at
the
end
of
August
each
year?
-
ANS-A:
Decide
how
much
money
will
be
needed
and
then
place
1/12th
of
that
amount
in
a
separate
account
each
month.
The
best
way
to
save
in
order
to
make
a
yearly
purchase,
in
this
case
a
tuition
payment,
A
bank
Certificate
of
Deposit
is
a
-
ANS-B:
Savings
instrument
that
requires
a
deposit
for
a
period
of
time
during
which
there
is
a
penalty
for
withdrawals.
A
certificate
of
deposit
(CD)
is
a
savings
instrument
that
requires
a
deposit
for
a
period
of
time
(term)
during
which
the
saver
cannot
withdraw
money
from
the
plan
without
a
penalty .
The
phrase
used
for
putting
money
into
a
savings
account
is
-
ANS-C:
Making
a
deposit.
Putting
money
into
an
account
is
"making
a
deposit"
and
taking
money
out
is
"making
a
withdrawal."
Which
financial
product
has
the
most
predictable
income?
-
ANS-C:
Certificate
of
deposit.
Most
certificates
of
deposit
(CDs)
are
issued
with
an
interest
rate
that
is
fixed
at
a
specified
rate
for
the
entire
term
of
the
deposit.
