WISE FINANCIAL LITERACY EXAM SCRIPT
WITH VERIFIED QUESTIONS AND
ANSWERS
●● lease
Answer: a written contract specifying the terms for the use of an asset
and the legal responsibilities of both parties to the agreement, such as a
landlord and tenant
●● liability
Answer: an actual or potential financial obligation
●● liquidity
Answer: the quality of an asset that permits it to be converted quickly
into cash without loss of value. For example, a mutual fund is more
liquid than real estate.
●● living will
Answer: a document that contains the signer's desires for specific
medical treatment in case the person is unable to make medical
decisions; also known as a health care directive
●● loan shark
, Answer: a person who lends money at an exorbitant rate of interest
●● medicaid
Answer: a program, financed by state and federal government tax
revenues to pay specified health care costs care for those who cannot
afford them
●● medicare
Answer: a federal government program, financed by deductions from
wages, that pays for certain health care expenses for older citizens. The
social Security Administration manages the program
●● mortgage
Answer: a long-term loan to buy real estate, that is, land and the
structures on it
●● mutual fund
Answer: an investment tool that pools the money of many shareholders
and invests it in a diversified portfolio of securities, such as stocks,
bonds, and money market assets
●● net worth
WITH VERIFIED QUESTIONS AND
ANSWERS
●● lease
Answer: a written contract specifying the terms for the use of an asset
and the legal responsibilities of both parties to the agreement, such as a
landlord and tenant
●● liability
Answer: an actual or potential financial obligation
●● liquidity
Answer: the quality of an asset that permits it to be converted quickly
into cash without loss of value. For example, a mutual fund is more
liquid than real estate.
●● living will
Answer: a document that contains the signer's desires for specific
medical treatment in case the person is unable to make medical
decisions; also known as a health care directive
●● loan shark
, Answer: a person who lends money at an exorbitant rate of interest
●● medicaid
Answer: a program, financed by state and federal government tax
revenues to pay specified health care costs care for those who cannot
afford them
●● medicare
Answer: a federal government program, financed by deductions from
wages, that pays for certain health care expenses for older citizens. The
social Security Administration manages the program
●● mortgage
Answer: a long-term loan to buy real estate, that is, land and the
structures on it
●● mutual fund
Answer: an investment tool that pools the money of many shareholders
and invests it in a diversified portfolio of securities, such as stocks,
bonds, and money market assets
●● net worth
