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
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.
...
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
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:
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?
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:
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?
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
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
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?
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.
Which financial product typically pays the highest rate of interest?
C: Certificate of deposit. All of these types of accounts and financial products earn interest except for
common stock.
Financial services and products generally offered by banks and credit unions include:
B: Savings and loans. The basic financial functions offered by banks and credit unions are checking
accounts, savings accounts, and personal and business loans.
The National Credit Union Administration (NCUA) insures accounts in:
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