WISE Financial Literacy Test Review questions and answers checking account - correct answer transfer money to others by use of checks or electronic payments, access money directly by use of debit card, make deposits to and withdrawals from the account savings account - correct answer allow deposits and withdrawals within limits, limit access to funds by check, help users earn interest on money kept in the account Certificate of Deposit (CD) - correct answer holds money for a set amount of time, earns higher rate of interest than savings accounts money market account - correct answer requires a high minimum balance, earns higher rate of interest than savings accounts, allows a limited number of checks to be written from it savings bond - correct answer purchased from the government then sold back later for higher amount If a person makes a deposit of $10,000 or more into a bank account, the bank must notify the - correct answer US Treasury Department Which financial product typically pays the highest rate of interest? - correct answer certificate of deposit Which of the following is considered to be open-end credit? - correct answer department store charge cards When a person brings an item to a pawnshop to obtain cash, the transaction is considered - correct answer a collateralized loan
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