W!se Financial Literacy Practice Test Questions With Complete Answers, A+

The cost to use someone else's money for a period of time is called the: {Ans: Interest rate expressed as a percentage}Frankie's savings account has earned a lot of interest. He wants to know if he must pay taxes on the interest earned. What would the IRS tell him? {Ans: Savings account interest is taxable}Which of the following does the Federal Reserve use to regulate the nation's money supply? {Ans: Monetary policy}A type of electronic funds transfer (EFT) is: {Ans: An ATM transaction}Interest earned on interest is known as: {Ans: Compounded interest}Which statement is FALSE about most ATM (Automated Teller Machine) cards? {Ans: You can always get cash anywhere in the world with no fee.}One of Andre's seldom-used credit cards has been stolen without his knowledge. When he gets his monthly statement, he realizes that someone else has been using the card and reports it stolen. The maximum amount of the unauthorized purchases he is he liable for is: {Ans: $50}An investor bought 40 shares of ABC corporation's stock at $80 a share. Two weeks later, the investor receives notice that the corporation has approved a 2-for-1 stock split. Based on this information,