W!SE Financial Literacy Certification Test
Latest recent and frequently tested exam
with comprehensive questions and
verified accurate solution (detailed &
elaborated) GRADED A+
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,Earned Income - correct ans:Income derived from active participation
in a trade or business, including wages, salary, tips,
commissions and bonuses.
Unearned Income - correct ans:Any income that comes from investments and other sources unrelated
to employment services. Examples: interest from a savings account, bond interest, alimony, and
dividends from stock
Exemptions (aka allowance) and how they work - correct ans:If you are not claimed as a dependent on
another
taxpayer's return, then you can claim one personal tax
exemption. The exemption reduces your taxable income just like a deduction does, but has fewer
restrictions to claiming it. If you are married and file a joint tax return, both you and your spouse each
get an exemption.
Exemptions (aka allowance) and how they work PART 2 - correct ans:The IRS allows you to take
additional exemptions for each dependent you claim. Frequently, the source of these exemptions are
the children who live with you for more than half the year, are under 19 years old (or under 24 if a full-
time student) and who don't provide more than half of their own financial support during the tax year.
Liquidity - what does it mean? - correct ans:The ability to convert an asset to cash quickly and with
minimal impact to the price.
Liquidity - what financial products are liquid? - correct ans:Examples: Cash, Most stocks, money market
instruments and government bonds.
Gift cards - how do they work? - correct ans:A gift card is a restricted monetary equivalent is issued by
retailers or banks to be used as an alternative to a non-monetary gift.
Gift cards - how do they work - fees? - correct ans:Prepaid cards, gift cards, and gift certificates cannot
expire within five years of activation or unless the terms of the expiration are clearly disclosed. The law
, bans dormancy fees, inactivity fees or service fees on gift cards unless there has been no activity in a 12-
month period and the issuer clearly discloses all fees before the gift card is purchased.
Gift cards - how do they work - fees? (Exclusions) - correct ans:Prepaid phone cards , re-loadable cards,
loyalty
or rewards cards, cards issued for admission to special
events or venues and certificates issued in paper form only are exempt.
Discretionary income and budget surplus - correct ans:The amount of an individual's income that is left
for
spending, investing or saving after taxes and personal
necessities (such as food, shelter, and clothing) have been paid. Discretionary income includes money
spent on luxury items, vacations and non-essential goods and services.
Money orders - high rate of counterfeits - correct ans:A certificate that allows the stated payee to
receive cash
on-demand, usually issued by governments and banking institutions. A money order functions much like
a check, in that the person who purchased the money order may stop payment.
Why does the US currency have value? - correct ans:Its value is only based on what we can get in
exchange for it. Or put it another way, money has value as long as other people believe the money you
give them can be
exchanged for the goods and services they desire in the
future.
Opportunity cost - correct ans:The second-best alternative (or the value of that
alternative) that must be given up when scarce resources are used for one purpose instead of another
Who is hurt the most and least with inflation - correct ans:Inflation is a general increase in prices and a
corresponding decrease in money's purchasing power.
Who is hurt the most with inflation? - correct ans:Those on fixed incomes (retired people)
Latest recent and frequently tested exam
with comprehensive questions and
verified accurate solution (detailed &
elaborated) GRADED A+
Professional Academic Assistance Services
Services Offered
Proctored Exam Assistance
Online Class Management (Full Course Support)
Exam Preparation & Study Materials
Assignments and Coursework Support
Essays and Research Papers
Discussion Posts and Replies
CONTACT INFORMATION
WHATAPPSLINK- https://wa.me/254784769540
,Earned Income - correct ans:Income derived from active participation
in a trade or business, including wages, salary, tips,
commissions and bonuses.
Unearned Income - correct ans:Any income that comes from investments and other sources unrelated
to employment services. Examples: interest from a savings account, bond interest, alimony, and
dividends from stock
Exemptions (aka allowance) and how they work - correct ans:If you are not claimed as a dependent on
another
taxpayer's return, then you can claim one personal tax
exemption. The exemption reduces your taxable income just like a deduction does, but has fewer
restrictions to claiming it. If you are married and file a joint tax return, both you and your spouse each
get an exemption.
Exemptions (aka allowance) and how they work PART 2 - correct ans:The IRS allows you to take
additional exemptions for each dependent you claim. Frequently, the source of these exemptions are
the children who live with you for more than half the year, are under 19 years old (or under 24 if a full-
time student) and who don't provide more than half of their own financial support during the tax year.
Liquidity - what does it mean? - correct ans:The ability to convert an asset to cash quickly and with
minimal impact to the price.
Liquidity - what financial products are liquid? - correct ans:Examples: Cash, Most stocks, money market
instruments and government bonds.
Gift cards - how do they work? - correct ans:A gift card is a restricted monetary equivalent is issued by
retailers or banks to be used as an alternative to a non-monetary gift.
Gift cards - how do they work - fees? - correct ans:Prepaid cards, gift cards, and gift certificates cannot
expire within five years of activation or unless the terms of the expiration are clearly disclosed. The law
, bans dormancy fees, inactivity fees or service fees on gift cards unless there has been no activity in a 12-
month period and the issuer clearly discloses all fees before the gift card is purchased.
Gift cards - how do they work - fees? (Exclusions) - correct ans:Prepaid phone cards , re-loadable cards,
loyalty
or rewards cards, cards issued for admission to special
events or venues and certificates issued in paper form only are exempt.
Discretionary income and budget surplus - correct ans:The amount of an individual's income that is left
for
spending, investing or saving after taxes and personal
necessities (such as food, shelter, and clothing) have been paid. Discretionary income includes money
spent on luxury items, vacations and non-essential goods and services.
Money orders - high rate of counterfeits - correct ans:A certificate that allows the stated payee to
receive cash
on-demand, usually issued by governments and banking institutions. A money order functions much like
a check, in that the person who purchased the money order may stop payment.
Why does the US currency have value? - correct ans:Its value is only based on what we can get in
exchange for it. Or put it another way, money has value as long as other people believe the money you
give them can be
exchanged for the goods and services they desire in the
future.
Opportunity cost - correct ans:The second-best alternative (or the value of that
alternative) that must be given up when scarce resources are used for one purpose instead of another
Who is hurt the most and least with inflation - correct ans:Inflation is a general increase in prices and a
corresponding decrease in money's purchasing power.
Who is hurt the most with inflation? - correct ans:Those on fixed incomes (retired people)
