Wise Financial literacy UPDATED
ACTUAL Questions and CORRECT
Answers
Sources of Income - CORRECT ANSWER - Wages, intest, income
Exemption - CORRECT ANSWER - Reduce the amount of taxes
Liquidity - CORRECT ANSWER - How easily something can be sold
Gift Cards - CORRECT ANSWER - A closed and open loop system
Discretionary Income - CORRECT ANSWER - Not allocated for food or shelter
Money orders - CORRECT ANSWER - It is used like a check
Why US currency has value - CORRECT ANSWER - There is a belief that money has a
value and therefore is accepted
Opportunity cost - CORRECT ANSWER - What choice is given up
Who is hurt the most and least with inflation - CORRECT ANSWER - Banks are most
hurt and less hurt are people who owe money
Role of Treasurey - CORRECT ANSWER - Collect taxes, print taxes
Pay yourself first - CORRECT ANSWER - Automatic fly route money from paycheck to
savings
, CD - CORRECT ANSWER - A time deposit
Institutions that give loans - CORRECT ANSWER - Banks, credit unions, pawnshops
Who charges the most for loans - CORRECT ANSWER - Pawnshops, payday lenders
Why a credit union is good - CORRECT ANSWER - Member owned co-operative
financial institution that has lower interest rates on loans
Overdraft protection - CORRECT ANSWER - A feature offered by banks to prevent
overdrafting
Compound intee - CORRECT ANSWER - Interest earned on intrest
Time value of money - CORRECT ANSWER - It is calculated by value of money with
given amount of interest earned over a period of time
Liquid vs. non-liquid - CORRECT ANSWER - Checking accounts are more liquid while
CD's are less liquid
Rule of 72 - CORRECT ANSWER - How many years it will take to double an investment
Reconciling a checking account - CORRECT ANSWER - Keep up to date with your bank
account
Repayment of student loans - CORRECT ANSWER - 6 month grace period after leaving
school to pay off loans
ACTUAL Questions and CORRECT
Answers
Sources of Income - CORRECT ANSWER - Wages, intest, income
Exemption - CORRECT ANSWER - Reduce the amount of taxes
Liquidity - CORRECT ANSWER - How easily something can be sold
Gift Cards - CORRECT ANSWER - A closed and open loop system
Discretionary Income - CORRECT ANSWER - Not allocated for food or shelter
Money orders - CORRECT ANSWER - It is used like a check
Why US currency has value - CORRECT ANSWER - There is a belief that money has a
value and therefore is accepted
Opportunity cost - CORRECT ANSWER - What choice is given up
Who is hurt the most and least with inflation - CORRECT ANSWER - Banks are most
hurt and less hurt are people who owe money
Role of Treasurey - CORRECT ANSWER - Collect taxes, print taxes
Pay yourself first - CORRECT ANSWER - Automatic fly route money from paycheck to
savings
, CD - CORRECT ANSWER - A time deposit
Institutions that give loans - CORRECT ANSWER - Banks, credit unions, pawnshops
Who charges the most for loans - CORRECT ANSWER - Pawnshops, payday lenders
Why a credit union is good - CORRECT ANSWER - Member owned co-operative
financial institution that has lower interest rates on loans
Overdraft protection - CORRECT ANSWER - A feature offered by banks to prevent
overdrafting
Compound intee - CORRECT ANSWER - Interest earned on intrest
Time value of money - CORRECT ANSWER - It is calculated by value of money with
given amount of interest earned over a period of time
Liquid vs. non-liquid - CORRECT ANSWER - Checking accounts are more liquid while
CD's are less liquid
Rule of 72 - CORRECT ANSWER - How many years it will take to double an investment
Reconciling a checking account - CORRECT ANSWER - Keep up to date with your bank
account
Repayment of student loans - CORRECT ANSWER - 6 month grace period after leaving
school to pay off loans
