Review Questions/Study Guide for WISE Financial Literacy Test

Review Questions/Study Guide for WISE Financial Literacy Test

Where does one typically find the best or most competitive interest rates on loans?
What is a credit union? Non-profit or profit?
Gift cards—do you have the option to convert them to cash at the store?
What does it mean to pay yourself first? Does this help build your wealth?
Why is it NOT wise to use your credit card for cash advances?
Does a post-high school degree/training or college degree increase your earning potential?
Why do corporations issue stock?
Difference between Bull market vs. Bear Market
Is a payday loan expensive or a cheap way to get a loan? What do you borrow against?
If you purchased a stock at $57 and the day you sell it, it sells for $40. Did you gain or lose on that stock?
What is a money order? When might you have to use a money order to make a payment?
What are the primary responsibilities of the Federal Reserve System?
If you win game show money, it is “windfall” income. Do you pay taxes on your winnings?
If you win the lottery, do you pay income taxes on your winnings?
What are some characteristics of money?
What items are found on a stock quote from a newspaper/the Internet?
Why should you NOT make a check out to “cash”?
Why should you not sign a blank check?
What is the advantage of having your paycheck electronically deposited?
What do you do if you find your credit report has an error on it?
FDIC insures what?
If Hunter puts $10,000 down on a $100,000 home and Taylor puts $20,000 down on a $100,000 home, which one will have the lower mortgage payment?
Why should you shop around for insurance quotes?
How do insurance deductibles work? If you have a $500 deductible on your car insurance and you have a wreck that causes $4000 in damage to your car. How much will the ins. company pay? How much do you pay?
What might place you in a higher risk pool which would cause your insurance premiums to be higher?
Why might you need to place a stop payment on a check you’ve written?
What is the advantage of a CD (a certificate of deposit) over a regular savings account?
Does a CD require a minimum deposit?
If you have a baby, how can you increase your net pay?
If your income remains the same over a 3-yr. period but inflation goes up, what does that do to your buying power? Does your dollar go as far?
Tenant’s ins. and renter’s ins. are the same thing. Why should you buy it if you rent a home or apartment? What does it protect?
What kinds of things are considered liquid assets, meaning they have easy access or can be quickly converted to cash?
If you have invested money in multiple accounts such as real estate, bonds, savings, etc., you have “______” your investments. In other words, you have not put “all your eggs in one basket.”
High interest rate loans are typically given to people who have a poor credit score. True or False? They also usually have a shorter payment period.
If you find an ATM card w/the PIN number written on it, what will you be able to do w/the card? Why should YOU NOT put your PIN number on your own ATM (or debit) card? Where should you keep PIN numbers and passwords for online accounts?
High risk lending is the same as predatory lending. What does this mean?
What is a 401K? Why should you look for this as a job benefit?
How does a bank lending money to businesses help the economy?
You have budgeted $150 for your credit card payment each month, but when the bill comes you realize you have charged $200 this month. What should you do, Circle one answer? A. Change the budget amount? B. Pay the bill in full but stay w/in budget next time? C. Only pay $50 and pay the rest of it in payments?
When you receive an inheritance or money from a life insurance policy, you are the ______.
Do you pay taxes on your stock dividends? Are they considered part of your income?
When are student loans typically paid back?