WISE FINANCIAL LITERACY
CERTIFICATION STUDY GUIDE
WITH ANSWERS
◉ exemption
Answer: a deduction allowed by law to reduce the amount of income
that would otherwise be taxed
◉ liquidity
Answer: 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
Answer: a card with a specified amount of credit on it redeemable at
a specific store
◉ discretionary income/budget surplus
Answer: the amount of income left for spending after taxes
◉ money orders
Answer: exchangeable for cash
, works like a check
bought if you don't have a bank account
◉ why US currency has value
Answer: the government has declared that money is acceptable for
paying debts
◉ opportunity cost
Answer: the value of the best alternative given up
◉ who is and is not hurt by inflation
Answer: companies and borrowers (not hurt)
workers, recipients of fixed incomes, and savers (hurt)
◉ US treasury department
Answer: manages government revenue
they issue bonds, notes, and bills
◉ pay yourself first
Answer: put money into savings and retirement accounts to avoid
spending it
◉ certificate of deposit (CD)
CERTIFICATION STUDY GUIDE
WITH ANSWERS
◉ exemption
Answer: a deduction allowed by law to reduce the amount of income
that would otherwise be taxed
◉ liquidity
Answer: 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
Answer: a card with a specified amount of credit on it redeemable at
a specific store
◉ discretionary income/budget surplus
Answer: the amount of income left for spending after taxes
◉ money orders
Answer: exchangeable for cash
, works like a check
bought if you don't have a bank account
◉ why US currency has value
Answer: the government has declared that money is acceptable for
paying debts
◉ opportunity cost
Answer: the value of the best alternative given up
◉ who is and is not hurt by inflation
Answer: companies and borrowers (not hurt)
workers, recipients of fixed incomes, and savers (hurt)
◉ US treasury department
Answer: manages government revenue
they issue bonds, notes, and bills
◉ pay yourself first
Answer: put money into savings and retirement accounts to avoid
spending it
◉ certificate of deposit (CD)
