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WISE FINANCIAL LITERACY CERTIFICATION TEST REVIEW QUESTIONS AND ANSWERS
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WISE FINANCIAL LITERACY CERTIFICATION TEST REVIEW QUESTIONS AND ANSWERS
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Name: Score:43 Multiple choice questions
Definition 1 of 43
A federal law enacted in 1968 with the intention of protecting consumers in their dealings with
lenders and creditors.
Retirement
Truth in Lending Act
Federal reserve
Whole life insurance
Definition 2 of 43
The cost of an alternative that must be forgone in order to pursue a certain action.
Investments portfolio
Renters Insurance
Compound interest
Opportunity Cost
Definition 3 of 43
Collateralize loans the loan is collateralized by the item you bring in order to get a loan from
the pawnshop
Pawnshops
Credit Reports
Rule Of 72
Dividends
,Definition 4 of 43
The amount of an individuals income that is left for spending investing or saving after taxes and
personal necessities.
inflation is the general rise of price levels
Discretionary income
Tax anticipation loans
Overdraft protection
Definition 5 of 43
how long will it take to double an investments? Divide 72 by the interest rate to be earned: 72
divided by 3% interest = 24 years.
Rule of 71
Rule of 72
Rule of 62
Rule of 82
Definition 6 of 43
who suffers in inflation: creditors people living on fixed income and people trying to save.
Who benefits from inflation people who owe significant debt
inflation is the general rise of price levels
Institutions that give loans
Discretionary income
Investments portfolio
,Definition 7 of 43
Interest calculated on the initial principal and also on the accumulated interest of previous
periods of a deposit or loan
Compound interest
Mutual funds
Rule of 72
Opportunity cost
Definition 8 of 43
life insurance policy that remains in force for the insured's whole life and requires (in most
cases) premiums to be paid into the policy annually.
Truth in Lending Act
Who is the most hurt and the least hurt with inflation?
Whole life insurance
Retirement
Definition 9 of 43
PYD: automatically route your specified savings contribution from each paycheck at the time it
is received.
Rule Of 72
Opportunity Cost
Pay Yourself First
Compound Interest
, Definition 10 of 43
the federal reserve system and informally as the FED is the central banking system of the
United States.
Credit Reports
Truth in Lending Act
Whole life insurance
Federal reserve
Definition 11 of 43
Collision coverage is usually not required if you own a vehicle in full (hold the title), however if
you are leasing or financing a vehicle, your lender or lien holder will most certainly require it.
Overdraft protection
Term life insurance
Collision coverage
Investments portfolio
Definition 12 of 43
The ability to convert an asset to cash quickly
Opportunity Cost
Liquidity
Dividends
Deflation
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