WISEFINANCIALLITERACYCERTI
FICATIONPRACTICEMULTIPLECH
OICEQUESTIONS
Questionn:nTonqualifynfornanFederalnHousingnAdministrationn(FHA)nloan,nanpersonnm
ustngenerallyn
n
nA:nhavenatnleastnanhighnschoolndiploma.n
nB:nhavenone-quarternofnthencostnofnthenhome
nfornandown-payment.n
nC:nfulfillnincomenguidelines.n
nD:nprovidentwonindividualsntonco-signnthenloan.n-nncorrectnanswer-
C:nfulfillnincomenguidelines.
Anhighnschoolnstudentnhasnbegunntoninvestigatenthenfieldnofnfinancenasnancareernch
oice.nInndecidingnaboutnthenfield,nthenstudentnshouldnfocusnonnwhichnquestionnfirst?
n
nA:nWillnInfindnanbalancenbetweennfinancialnrewardsnandnpersonalnsatisfactionnfromn
work?n
nB:nHownmanynpeoplendonInknownwhonworkninnthisnfield?n
nC:nOncenIntrainnfornthisnarea,nhownlongnbeforenInwillnbe
natnthentopnofnthenfield?n
nD:nArentherenpeopleninnthisnfieldnwhonarendissatisfied
nwithntheirnjobs?n-nncorrectnanswer-
A:nWillnInfindnanbalancenbetweennfinancialnrewardsnandnpersonalnsatisfactionnfromnw
ork?
Antypenofnelectronicnfundsntransfern(EFT)nis:n
n
nA:nAntransactionnmadenwithnancheckn
nB:nAndepositnmadenwithnanbankntellern
nC:nNotnwidelynusednbynconsumersn
nD:nAnnATMntransactionn-nncorrectnanswer-D:nAnnATMntransaction
Ancompanynoffersnandefined-
contributionnpensionnplannwhichnmeansnthatnuponnretirementnthenemployeenwillnrec
eive
n
nA:none-halfnofnthenemployee'snlastnyear'snsalary.n
nB:nthentotalnamountnofnmoneyncontributednplusninvestment
nearnings.n
, nC:nannamountnofnmoneynbasednonlynonnthenlengthnofntime
nthenemployeenworkednfornthencompany.n
nD:nanspecifiednamountnofnmoneynbasedntotallynonnthenprofit
nearnednbynthencompanynwhilenthenemployeenworked
nthere.n-nncorrectnanswer-
B:nthentotalnamountnofnmoneyncontributednplusninvestmentnearnings.
TheninterestnearnednonnUnitednStatesnSeriesnEEnSavingsnBondsnisn
n
nA:nexemptnfromnstatenandnlocalntaxes.n
nB:npaidninnanlumpnsumnatnthentimenthenfacenvaluenonnthenbondnisnreached.n
nC:nequalntonthenmoneynpaidntonpurchasenit.n-nncorrectnanswer-
A:nexemptnfromnstatenandnlocalntaxes.
Buyingnantreasurynbilln(T-bill)nisnbestnforninvestorsnwhonarenlookingnforn
n
nA:nanplacentoninvestnbetweenn$100-$500.n
nB:nansecure,nlownriskninvestment.n
nC:nanhighernyieldnonntheirninvestmentnthanncorporatenbondsnoffer.n
nD:nanninvestmentnthatnmaturesninn10-30nyears.n-nncorrectnanswer-
B:nansecure,nlow,nriskninvestment.
Usingnanbrokeragenfirm,nanqualifiedninvestornbuysn1000nsharesnofnancommonnstockn
atn$50nansharenonn50%nmargin.nThisnmeansnthatnthen
n
nA:ninvestornwillnpaynonlyn$5000nfornthenshares.n
nB:ninvestornisnbuyingn2000nshares.n
nC:nbrokeragenfirmnisnlendingntheninvestorn50%nofnthenmoney.n
nD:nbrokeragenfirmnwillnownn50%nofnthen1000nsharesnofnstocknthatnwerenpurchased.
n-nncorrectnanswer-C:nbrokeragenfirmnisnlendingntheninvestorn50%nofnthenmoney
Tondeterminenthentimenvaluenofndepositingn$100ninnansavingsnaccount,nanpersonnne
edsntonknowntheninterestnratenandn
n
nA:nherntotalnincome.n
nB:nthenratenofninflation.n
nC:nwhethernthenaccountnisnFDICnprotected.n
nD:nwhethernthenbanknoffersnoverdraftnprotection.n-nncorrectnanswer-
B:nthenratenofninflation.
Thenamountnanlendernchargesntonborrownmoneynisncallednthe:n
n
nA:nPrincipaln
nB:nAnnualnPercentagenRaten(APR)n
nC:nLoannbalancen
nD:nFinancenchargen-nncorrectnanswer-CorrectnAnswern:nD:nFinancencharge
Thencostntonusensomeonenelse'snmoneynfornanperiodnofntimenisncallednthe:n
n
nA:nInterestnratenexpressednasnanpercentagen
nB:nOpportunityncostn
nC:nMinimumnpaymentn
FICATIONPRACTICEMULTIPLECH
OICEQUESTIONS
Questionn:nTonqualifynfornanFederalnHousingnAdministrationn(FHA)nloan,nanpersonnm
ustngenerallyn
n
nA:nhavenatnleastnanhighnschoolndiploma.n
nB:nhavenone-quarternofnthencostnofnthenhome
nfornandown-payment.n
nC:nfulfillnincomenguidelines.n
nD:nprovidentwonindividualsntonco-signnthenloan.n-nncorrectnanswer-
C:nfulfillnincomenguidelines.
Anhighnschoolnstudentnhasnbegunntoninvestigatenthenfieldnofnfinancenasnancareernch
oice.nInndecidingnaboutnthenfield,nthenstudentnshouldnfocusnonnwhichnquestionnfirst?
n
nA:nWillnInfindnanbalancenbetweennfinancialnrewardsnandnpersonalnsatisfactionnfromn
work?n
nB:nHownmanynpeoplendonInknownwhonworkninnthisnfield?n
nC:nOncenIntrainnfornthisnarea,nhownlongnbeforenInwillnbe
natnthentopnofnthenfield?n
nD:nArentherenpeopleninnthisnfieldnwhonarendissatisfied
nwithntheirnjobs?n-nncorrectnanswer-
A:nWillnInfindnanbalancenbetweennfinancialnrewardsnandnpersonalnsatisfactionnfromnw
ork?
Antypenofnelectronicnfundsntransfern(EFT)nis:n
n
nA:nAntransactionnmadenwithnancheckn
nB:nAndepositnmadenwithnanbankntellern
nC:nNotnwidelynusednbynconsumersn
nD:nAnnATMntransactionn-nncorrectnanswer-D:nAnnATMntransaction
Ancompanynoffersnandefined-
contributionnpensionnplannwhichnmeansnthatnuponnretirementnthenemployeenwillnrec
eive
n
nA:none-halfnofnthenemployee'snlastnyear'snsalary.n
nB:nthentotalnamountnofnmoneyncontributednplusninvestment
nearnings.n
, nC:nannamountnofnmoneynbasednonlynonnthenlengthnofntime
nthenemployeenworkednfornthencompany.n
nD:nanspecifiednamountnofnmoneynbasedntotallynonnthenprofit
nearnednbynthencompanynwhilenthenemployeenworked
nthere.n-nncorrectnanswer-
B:nthentotalnamountnofnmoneyncontributednplusninvestmentnearnings.
TheninterestnearnednonnUnitednStatesnSeriesnEEnSavingsnBondsnisn
n
nA:nexemptnfromnstatenandnlocalntaxes.n
nB:npaidninnanlumpnsumnatnthentimenthenfacenvaluenonnthenbondnisnreached.n
nC:nequalntonthenmoneynpaidntonpurchasenit.n-nncorrectnanswer-
A:nexemptnfromnstatenandnlocalntaxes.
Buyingnantreasurynbilln(T-bill)nisnbestnforninvestorsnwhonarenlookingnforn
n
nA:nanplacentoninvestnbetweenn$100-$500.n
nB:nansecure,nlownriskninvestment.n
nC:nanhighernyieldnonntheirninvestmentnthanncorporatenbondsnoffer.n
nD:nanninvestmentnthatnmaturesninn10-30nyears.n-nncorrectnanswer-
B:nansecure,nlow,nriskninvestment.
Usingnanbrokeragenfirm,nanqualifiedninvestornbuysn1000nsharesnofnancommonnstockn
atn$50nansharenonn50%nmargin.nThisnmeansnthatnthen
n
nA:ninvestornwillnpaynonlyn$5000nfornthenshares.n
nB:ninvestornisnbuyingn2000nshares.n
nC:nbrokeragenfirmnisnlendingntheninvestorn50%nofnthenmoney.n
nD:nbrokeragenfirmnwillnownn50%nofnthen1000nsharesnofnstocknthatnwerenpurchased.
n-nncorrectnanswer-C:nbrokeragenfirmnisnlendingntheninvestorn50%nofnthenmoney
Tondeterminenthentimenvaluenofndepositingn$100ninnansavingsnaccount,nanpersonnne
edsntonknowntheninterestnratenandn
n
nA:nherntotalnincome.n
nB:nthenratenofninflation.n
nC:nwhethernthenaccountnisnFDICnprotected.n
nD:nwhethernthenbanknoffersnoverdraftnprotection.n-nncorrectnanswer-
B:nthenratenofninflation.
Thenamountnanlendernchargesntonborrownmoneynisncallednthe:n
n
nA:nPrincipaln
nB:nAnnualnPercentagenRaten(APR)n
nC:nLoannbalancen
nD:nFinancenchargen-nncorrectnanswer-CorrectnAnswern:nD:nFinancencharge
Thencostntonusensomeonenelse'snmoneynfornanperiodnofntimenisncallednthe:n
n
nA:nInterestnratenexpressednasnanpercentagen
nB:nOpportunityncostn
nC:nMinimumnpaymentn
