Wise Financial Literacy (Practice Exam)

Which of the following would be considered an asset? A. Credit card account. B. Checking account. C. Car loan. D. Student loan. {Ans: B. Checking account.}Which of the following financial products is good to have so that a person can cover cash needs today? A. Bonds. B. Individual Retirement Account (IRA). C. Life insurance. D. Regular checking account. {Ans: D. Regular checking account.}Why do financial advisors recommend that a person save at least 10% of each paycheck? A. To have more money for wants not needs. B. To build wealth. C. To be able to pay bills on time. D. To be able to support worthwhile charities. {Ans: B To build wealth.}Two types of life insurance policies are A. general and fixed-rate. B. valuable and indemnified. C. term and whole life (permanent). D. annual and tax exempt. {Ans: C. term and whole life (permanent).}A person wants to invest in a low-risk investment product. Which of the following would be the best investment for her? A. US Treasury bond. B. Mutual fund. C. Common stock. D. Speculative stock. {Ans: A. US Treasury bond.}What kind of income can a person earn from savings accounts at a commercial