WISE CERTIFICATION FINAL PAPER 2026
QUESTIONS WITH FULL SOLUTION GRADED
A+
◉ identity theft. Answer: a form of fraud; thieves use another
persona's personal information in order to steal that person's money
or gain access to other benefits (i.e., credit card fraud, phone and
utility theft, and banking fraud)
◉ Social Security Number. Answer: Also known as your SSN; nine
digit number given to U.S. citizens, permanent U.S. residents, and
temporary working residents to track income and wages; used as
the primary identification number for individuals in the United
States
◉ phishing scam. Answer: a scam where someone tries to deceive
you into providing personal information by impersonating someone,
like a bank representative
◉ cash card. Answer: refers to any card that can be used by a cash
card reader and used to pay for products or services at that retailer,
such as an ATM card, pre-paid credit card, or store gift card
,◉ cashless society. Answer: a society in which consumers pay using
credit or debit cards, electronic funds transfer, or shop online
instead of paying by cash or personal check
◉ gift card. Answer: also known as a gift certificate; refers to a
prepaid, store-valued money card issued by the retailer or by a bank
that is used as an alternative to cash for purchases at a particular
business
◉ inflation. Answer: a general increase in prices and decline in
purchasing power (value of money) over a period of time
◉ purchasing power. Answer: the value of a currency in terms of the
amount of goods or services that one unit of money (or $1.00 in the
U.S.) can buy
◉ store card. Answer: a charge card or credit card used to purchase
goods in a particular store and paid with interest at a later date;
usually carries an incentives or rewards program
◉ supply & demand. Answer: the theory explaining the interaction
between the supply of a resource and the demand for that resource,
or the effect that the availability of a particular product and the
desire for the product have on price
,◉ U.S. Treasury Department. Answer: the government department
responsible for issuing all Treasury bonds, notes and bills
◉ upward mobility. Answer: the ability to move from a lower to a
higher social class or status, such as from the level of poverty to
middle class, usually in terms of household income and spending
power
◉ windfall income. Answer: refers to a large profit that occurs
unexpectedly due to fortuitous circumstances, such as an unforeseen
inheritance or winning the lottery
◉ balanced budget. Answer: refers to a budget in which revenues, or
income, are equal to expenditures
◉ budget deficit. Answer: an indicator of financial health that occurs
when expenditures exceed revenue (income) or, in other words,
more money was spent than the income available
◉ discretionary income. Answer: refers to the take-home income, or
net pay, that remains after mandatory deductions (i.e., taxes) and
expenditures on necessary items (i.e., food, shelter) are accounted
for in the budget; also known as spending money or fun money
, ◉ disposable income. Answer: refers to the take-home income
available for spending or saving after the deduction of taxes and
other mandatory charges; also known as net pay
◉ emergency fund. Answer: an account used to set aside funds
needed in the event of a personal financial dilemma, such as the loss
of a job, a debilitating illness, or a major expense; usually
recommended to be at least six months expenses
◉ fixed expense. Answer: a budget item that will be the same total
amount from month-to-month regardless of changes in
circumstance, such as rent or installment loan (i.e., student or car)
payments
◉ opportunity costs. Answer: the benefit, profit, or value of
something that must be given up in order to acquire or achieve
something else; the alternate that was forfeited when a decision was
made
◉ surplus. Answer: the amount of something left over when
requirements have been met, such as a surplus of income after
expenses are paid in a personal budget
◉ trade off. Answer: occurs when you give up the value or added-
benefit of one choice in order to achieve the desired results of
another choice; usually includes an assessment of "pros" and "cons"
QUESTIONS WITH FULL SOLUTION GRADED
A+
◉ identity theft. Answer: a form of fraud; thieves use another
persona's personal information in order to steal that person's money
or gain access to other benefits (i.e., credit card fraud, phone and
utility theft, and banking fraud)
◉ Social Security Number. Answer: Also known as your SSN; nine
digit number given to U.S. citizens, permanent U.S. residents, and
temporary working residents to track income and wages; used as
the primary identification number for individuals in the United
States
◉ phishing scam. Answer: a scam where someone tries to deceive
you into providing personal information by impersonating someone,
like a bank representative
◉ cash card. Answer: refers to any card that can be used by a cash
card reader and used to pay for products or services at that retailer,
such as an ATM card, pre-paid credit card, or store gift card
,◉ cashless society. Answer: a society in which consumers pay using
credit or debit cards, electronic funds transfer, or shop online
instead of paying by cash or personal check
◉ gift card. Answer: also known as a gift certificate; refers to a
prepaid, store-valued money card issued by the retailer or by a bank
that is used as an alternative to cash for purchases at a particular
business
◉ inflation. Answer: a general increase in prices and decline in
purchasing power (value of money) over a period of time
◉ purchasing power. Answer: the value of a currency in terms of the
amount of goods or services that one unit of money (or $1.00 in the
U.S.) can buy
◉ store card. Answer: a charge card or credit card used to purchase
goods in a particular store and paid with interest at a later date;
usually carries an incentives or rewards program
◉ supply & demand. Answer: the theory explaining the interaction
between the supply of a resource and the demand for that resource,
or the effect that the availability of a particular product and the
desire for the product have on price
,◉ U.S. Treasury Department. Answer: the government department
responsible for issuing all Treasury bonds, notes and bills
◉ upward mobility. Answer: the ability to move from a lower to a
higher social class or status, such as from the level of poverty to
middle class, usually in terms of household income and spending
power
◉ windfall income. Answer: refers to a large profit that occurs
unexpectedly due to fortuitous circumstances, such as an unforeseen
inheritance or winning the lottery
◉ balanced budget. Answer: refers to a budget in which revenues, or
income, are equal to expenditures
◉ budget deficit. Answer: an indicator of financial health that occurs
when expenditures exceed revenue (income) or, in other words,
more money was spent than the income available
◉ discretionary income. Answer: refers to the take-home income, or
net pay, that remains after mandatory deductions (i.e., taxes) and
expenditures on necessary items (i.e., food, shelter) are accounted
for in the budget; also known as spending money or fun money
, ◉ disposable income. Answer: refers to the take-home income
available for spending or saving after the deduction of taxes and
other mandatory charges; also known as net pay
◉ emergency fund. Answer: an account used to set aside funds
needed in the event of a personal financial dilemma, such as the loss
of a job, a debilitating illness, or a major expense; usually
recommended to be at least six months expenses
◉ fixed expense. Answer: a budget item that will be the same total
amount from month-to-month regardless of changes in
circumstance, such as rent or installment loan (i.e., student or car)
payments
◉ opportunity costs. Answer: the benefit, profit, or value of
something that must be given up in order to acquire or achieve
something else; the alternate that was forfeited when a decision was
made
◉ surplus. Answer: the amount of something left over when
requirements have been met, such as a surplus of income after
expenses are paid in a personal budget
◉ trade off. Answer: occurs when you give up the value or added-
benefit of one choice in order to achieve the desired results of
another choice; usually includes an assessment of "pros" and "cons"
