Wise Financial literacy Exam
Questions and Answers 100%
Pass
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
Questions and Answers 100%
Pass
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
