WISE Financial Literacy Certification Test Practice questions with correct answers

Sources of Income Answer Wages, rentals, interest, capital, profit, investments, entrepreneurship Exemption (allowance) and how it works Answer Allowance is used to reduce amount of taxed income Liquidity Answer The degree of ease in which the assets can be sold Gift cards and how they work (a monthly inactivity fee may begin after 12 months) Answer closed loop system and open loop system Discretionary income or budget surplus Answer Not allocated for food or shelter Money orders (high rate of counterfeits) Answer 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 specific figure. Example. The United States Postal Service limits domestic postal money orders to U.S. $1,000.00. U.S. Postal money orders are hard to counterfeit Why does the U.S. currency have value even though