W!SE Financial Literacy Certification Test Review Questions With Complete Solutions

Liquidity - The ability to convert an asset to cash quickly Products that are liquid - Stocks and Money Market accounts Gift Cards - a card that is given as a gift with a specified amount of money. There is a monthly inactivity fee that may begin after 12 months. Discretionary income - The amount of an individuals income that is left for spending investing or saving after taxes and personal necessities. Money orders - a certificate that allows the stated payee to receive cash on-demand, usually issued by government and banking institutions. Opportunity Cost - The cost of an alternative that must be forgone in order to pursue a certain action. Who is the most hurt and the least hurt with inflation? - Winners- Fixed-rate mortgage holders, Auto-loan holders, Investors in stocks Losers- The American economy, Savers, Credit card debt holders, Consumers Pay Yourself First - PYD: automatically route your specified savings contribution from each paycheck at the time it is received.