WISE FINANCIAL LITERACY
CERTIFICATION EXAM NEW 2024
VERSION BEST STUDYING MATERIAL
WITH ALL QUESTIONS AND ANSWERS
A person buys a flat screen, plasma, theater-like
television. The person has homeowner's insurance. Why
would it be appropriate to add a personal property floater
to that insurance?
A: To reduce the premium on the homeowner's insurance.
B: To protect the person who owns the television from
liability for damages.
C: To show the insurance company a good faith
investment
has been made.
D: To cover the cost of replacement should the television
get damaged or stolen. Correct Answer D: To cover the
cost of replacement should the television get damaged or
stolen.
For the past five years, a person has had a $20,000 whole
life insurance policy that has a cash value clause. The
person decides to surrender the policy. At the time of
surrender, the person will receive
A: one-fifth of the $20,000 face value.
B: $20,000 less the premiums paid.
C: a calculated amount of money which includes the
premiums paid as well as the interest on that money.
, D: a calculated amount of money that must be converted
to
a term life insurance policy. Correct Answer C: a
calculated amount of money which includes the premiums
paid as well as the interest on that money.
If a person makes a deposit of $10,000 or more into a
bank account, the bank must notify the
A: US Treasury Department.
B: Federal Deposit Insurance Corporation. (FDIC).
C: State Banking Commission.
D: Federal Reserve Board. Correct Answer A: US
Treasury Department.
Employees prefer direct deposits because:
A: There is a small fee for the service
B: The danger of losing a paycheck is slightly reduced
C: The money is generally deposited in their checking
account sooner than it would be if they had to deposit it in
person
D: Direct deposits earn a higher rate of interest Correct
Answer C: The money is generally deposited in their
checking account sooner than it would be if they had to
deposit it in person
Which documents should be stored in a safe-deposit box?
A: Checkbook statements.
B: Copies of current and past budgets.
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?
A: Notify a credit reporting agency in order to avoid a late
fee.
B: File for bankruptcy in order to maintain ones current
credit score.
C: Notify the credit card companies in order to negotiate
a new payment plan.
D: Contact the Internal Revenue Service in order to avoid
paying income tax this year. Correct Answer C: Notify the
credit card companies in order to negotiate a new
payment plan.
Which statement best describes the relationship between
a person's educational level and that person's potential
earning power?
A: Education has no effect on a person's potential earning
power
B: A person with a professional degree is likely to earn at
least
four times as much per year as a person who did not
complete high school
C: Attaining a higher educational level affects the earning
potential only for people over 40 years old
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