WISE CERTIFICATION TEST 2026 PRACTICE
TEST QUESTIONS AND DETAILED FINANCIAL
LITERACY BREAKDOWN FULL REVIEW
◉ Capacity. Answer: your ability to repay the debt. Do you have
sufficient $money to repay a loan
◉ Capital. Answer: "net worth". wealth in the form of money or
property owned by a person
◉ Character. Answer: good reputation, Integrity
◉ Credit history. Answer: a summary of a person's borrowing and
repayment history
◉ 50 dollars. Answer: In the event that your credit card is stolen in
the United States, federal law limits the liability of card holders to
____ regardless of the amount charged on the card by the
unauthorized user.
◉ zero liability "Owes nothing". Answer: if just the credit card
account number itself is stolen, federal law guarantees that the card
holder has a___________to the issuer.
,◉ EFT. Answer: electronic funds transfer; exchange of money by
sending bank records via a computer network
◉ FDIC. Answer: the federal government protects your money up to
$250,000 in a single account
◉ Department store charge cards.. Answer: Which of the following is
considered to be open-end credit?
◉ Notify the credit card companies. Answer: A person has three
credit cards with very large outstanding balances and is unable to
make payments on any of them. Which action should the person take
◉ 10 years. Answer: When a person declares bankruptcy that fact
will appear on the person?s credit report
◉ A personal loan without assets to cover the loan amount. Answer:
What is meant by an uncollateralized loan?
◉ a collateralized loan. Answer: When a person brings an item to a
pawnshop to obtain cash, the transaction is considered
, ◉ Monetary policy. Answer: Which of the following does the Federal
Reserve use to regulate the nation's money supply?
◉ Salaries, wages, and tips. Answer: The primary sources of income
for most people between the ages of 20 and 35 who are not living on
a pension or social security are:
◉ better off financially the person is.. Answer: A person's debt ratio
shows the relationship between debt and net worth. The lower the
ratio the
◉ Exercise Tax. Answer: A person complains about how expensive it
is to be a cigarette smoker. One of the reasons cigarettes are so
expensive is that
◉ budget variance. Answer: the difference between the budgeted
amount and the actual amount that you spend
◉ budget variance. Answer: A man budgeted $200 a month for
clothing. This month the man spent $150 on clothing therefore that
budget item is considered to have
◉ capital gains on the investment will be taxed at a lower rate..
Answer: One of the benefits of holding an investment for over a year
rather than selling it in less than a year is that the
TEST QUESTIONS AND DETAILED FINANCIAL
LITERACY BREAKDOWN FULL REVIEW
◉ Capacity. Answer: your ability to repay the debt. Do you have
sufficient $money to repay a loan
◉ Capital. Answer: "net worth". wealth in the form of money or
property owned by a person
◉ Character. Answer: good reputation, Integrity
◉ Credit history. Answer: a summary of a person's borrowing and
repayment history
◉ 50 dollars. Answer: In the event that your credit card is stolen in
the United States, federal law limits the liability of card holders to
____ regardless of the amount charged on the card by the
unauthorized user.
◉ zero liability "Owes nothing". Answer: if just the credit card
account number itself is stolen, federal law guarantees that the card
holder has a___________to the issuer.
,◉ EFT. Answer: electronic funds transfer; exchange of money by
sending bank records via a computer network
◉ FDIC. Answer: the federal government protects your money up to
$250,000 in a single account
◉ Department store charge cards.. Answer: Which of the following is
considered to be open-end credit?
◉ Notify the credit card companies. Answer: A person has three
credit cards with very large outstanding balances and is unable to
make payments on any of them. Which action should the person take
◉ 10 years. Answer: When a person declares bankruptcy that fact
will appear on the person?s credit report
◉ A personal loan without assets to cover the loan amount. Answer:
What is meant by an uncollateralized loan?
◉ a collateralized loan. Answer: When a person brings an item to a
pawnshop to obtain cash, the transaction is considered
, ◉ Monetary policy. Answer: Which of the following does the Federal
Reserve use to regulate the nation's money supply?
◉ Salaries, wages, and tips. Answer: The primary sources of income
for most people between the ages of 20 and 35 who are not living on
a pension or social security are:
◉ better off financially the person is.. Answer: A person's debt ratio
shows the relationship between debt and net worth. The lower the
ratio the
◉ Exercise Tax. Answer: A person complains about how expensive it
is to be a cigarette smoker. One of the reasons cigarettes are so
expensive is that
◉ budget variance. Answer: the difference between the budgeted
amount and the actual amount that you spend
◉ budget variance. Answer: A man budgeted $200 a month for
clothing. This month the man spent $150 on clothing therefore that
budget item is considered to have
◉ capital gains on the investment will be taxed at a lower rate..
Answer: One of the benefits of holding an investment for over a year
rather than selling it in less than a year is that the
