Wise Financial Literacy Practice Test Study Guide Questions And Correct Answers

Which financial product has the most predictable income? {Ans: 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? {Ans: C: Certificate of deposit. All of these types of accounts and financial products earn interest except for common stock.}Which is the best example of a way to reduce fees paid for ATM transactions? {Ans: A: When making supermarket purchases with a debit card, a person adds $50 in cash to the transaction instead of using an ATM machine. Most supermarkets have a policy permitting patrons to add a cash withdrawal to a purchase made with a debit card or check without charging a fee.}The National Credit Union Administration (NCUA) insures accounts in: {Ans: A: Credit unions. The National Credit Union Association (NCUA) insures each depositor's accounts up to $100,000 in one credit union.}You have a checking account balance of $100 and you deposit a personal $200 check from your brother in your checking account. When will you be able to withdraw $150 in cash? {Ans: B: 3