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Wise financial Literacy Exam Questions And
Answers 100% Pass
Sources of income - ANS wages, rentals, interest, capital, profits, investments,
entrepreneurship
Exemption (aka an allowance) and how does it work - ANS allowance is used to reduce
amount of taxed income
Liquidity—what does it mean; what products are liquid - ANS the degree of ease in which
assets can be sold
Gift cards and how they work (a monthly inactivity fee may begin after 12 months) -
ANS closed loop system and open loop system
Discretionary income or budget surplus - ANS not allocated for food or shelter
Money orders (high rate of counterfeits) - ANS A money order is a payment order for a pre-
specified amount of money and is purchased at different types of stores - it is used like a check.
They are usually limited in maximum face value to some specified figure (for example, the
United States Postal Service limits domestic postal money orders to US $1,000.00. US Postal
money orders are hard to counterfeit.
Why does the U.S. currency have value even though it is not tied to a commodity - there is a
belief that money has value and therefore is accepted - ANS
, ©EVERLY 2025 ALL RIGHTS RESERVED
Opportunity cost - ANS next best alternative - it is what is given up when a choice is made.
Who is hurt the most and the least with inflation - most hurt are lenders (banks) and people
living on a fixed income. Least hurt are those who owe large amounts of money. - ANS
Role of the Treasury Department - ANS collects taxes, prints money, issues treasury bonds
Banks - ANS
Pay Yourself First - ANS automatically route money from paycheck to savings (before paying
bills).
CD - ANS What is it and what happens if you cash it before maturity: it is a time deposit
offered at financial institutions - penalty if cashed before maturity.
Institutions that give loans - ANS banks, credit unions, pawnshops, finance companies,
payday lenders, tax preparers
Which institution(s) charge the highest interest rates on loans - ANS pawnshops, payday
lenders, tax refund lenders, finance companies
What is a credit union and the advantage of using a credit union - ANS member owned co-
operative financial institution - advantage is lower interest rates on loans
Overdraft protection (opt in regulation) and how it works - ANS Overdraft protection is a
feature offered by banks to keep your checking account from over-drafting when you write a
check or swipe your debit card but don't have enough money in your account. It is a loan that is
paid back.
Wise financial Literacy Exam Questions And
Answers 100% Pass
Sources of income - ANS wages, rentals, interest, capital, profits, investments,
entrepreneurship
Exemption (aka an allowance) and how does it work - ANS allowance is used to reduce
amount of taxed income
Liquidity—what does it mean; what products are liquid - ANS the degree of ease in which
assets can be sold
Gift cards and how they work (a monthly inactivity fee may begin after 12 months) -
ANS closed loop system and open loop system
Discretionary income or budget surplus - ANS not allocated for food or shelter
Money orders (high rate of counterfeits) - ANS A money order is a payment order for a pre-
specified amount of money and is purchased at different types of stores - it is used like a check.
They are usually limited in maximum face value to some specified figure (for example, the
United States Postal Service limits domestic postal money orders to US $1,000.00. US Postal
money orders are hard to counterfeit.
Why does the U.S. currency have value even though it is not tied to a commodity - there is a
belief that money has value and therefore is accepted - ANS
, ©EVERLY 2025 ALL RIGHTS RESERVED
Opportunity cost - ANS next best alternative - it is what is given up when a choice is made.
Who is hurt the most and the least with inflation - most hurt are lenders (banks) and people
living on a fixed income. Least hurt are those who owe large amounts of money. - ANS
Role of the Treasury Department - ANS collects taxes, prints money, issues treasury bonds
Banks - ANS
Pay Yourself First - ANS automatically route money from paycheck to savings (before paying
bills).
CD - ANS What is it and what happens if you cash it before maturity: it is a time deposit
offered at financial institutions - penalty if cashed before maturity.
Institutions that give loans - ANS banks, credit unions, pawnshops, finance companies,
payday lenders, tax preparers
Which institution(s) charge the highest interest rates on loans - ANS pawnshops, payday
lenders, tax refund lenders, finance companies
What is a credit union and the advantage of using a credit union - ANS member owned co-
operative financial institution - advantage is lower interest rates on loans
Overdraft protection (opt in regulation) and how it works - ANS Overdraft protection is a
feature offered by banks to keep your checking account from over-drafting when you write a
check or swipe your debit card but don't have enough money in your account. It is a loan that is
paid back.
