WISE Financial Literacy Certification Review
Exam Questions and Answers with Verified
Solutions | Latest Updated 2026
sources of income wages
gifts
government benefits
capital gains
exemption a deduction allowed by law to reduce the
amount
of income that would otherwise be taxed
liquidity the ease in which an asset can be bought
or sold
ex. cash, stocks/bonds, checks,
gold/precious
metals, checking and savings acounts
gift cards a card with a specified amount of credit on
it
redeemable at a specific store
discretionary income/budget the amount of income left for spending
surplus after taxes
money orders exchangeable for cash
works like a check
bought if you don't have a bank account
, why US currency has value the government has declared that money
is
acceptable for paying debts
opportunity cost the value of the best alternative given up
US treasury department manages government revenue
they issue bonds, notes, and bills
pay yourself first put money into savings and retirement
accounts to
avoid spending it
certificate of deposit (CD) a certificate issued by a bank to a person
depositing money for a specified length of
time (at
a set interest rate)
avoids holders from withdrawing funds on
demand
(before it matures)
maturity- when the term ends
if redeemed before matured, you may
have to pay
a fine or forfeit a portion of the interest you
earned
on it
institutions that give loans banks, credit unions (low interest)
pawnshops, finance companies, payday
lenders,
tax preparers (high interest)
Exam Questions and Answers with Verified
Solutions | Latest Updated 2026
sources of income wages
gifts
government benefits
capital gains
exemption a deduction allowed by law to reduce the
amount
of income that would otherwise be taxed
liquidity the ease in which an asset can be bought
or sold
ex. cash, stocks/bonds, checks,
gold/precious
metals, checking and savings acounts
gift cards a card with a specified amount of credit on
it
redeemable at a specific store
discretionary income/budget the amount of income left for spending
surplus after taxes
money orders exchangeable for cash
works like a check
bought if you don't have a bank account
, why US currency has value the government has declared that money
is
acceptable for paying debts
opportunity cost the value of the best alternative given up
US treasury department manages government revenue
they issue bonds, notes, and bills
pay yourself first put money into savings and retirement
accounts to
avoid spending it
certificate of deposit (CD) a certificate issued by a bank to a person
depositing money for a specified length of
time (at
a set interest rate)
avoids holders from withdrawing funds on
demand
(before it matures)
maturity- when the term ends
if redeemed before matured, you may
have to pay
a fine or forfeit a portion of the interest you
earned
on it
institutions that give loans banks, credit unions (low interest)
pawnshops, finance companies, payday
lenders,
tax preparers (high interest)
