WISE Financial Literacy Certification
Test Practice Exam Questions and
Answers 100% Pass
Sources of Income - CORRECT ANSWER-Wages, rentals, interest, capital,
profit, investments, entrepreneurship
Exemption (allowance) and how it works - CORRECT ANSWER-Allowance is
used to reduce amount of taxed income
Liquidity - CORRECT 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)
- CORRECT ANSWER-closed loop system and open loop system
Discretionary income or budget surplus - CORRECT ANSWER-Not allocated for
food or shelter
Money orders (high rate of counterfeits) - CORRECT 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 it is not tied to a commodity -
CORRECT ANSWER-There is a belief that money has value and there fore is
accepted
Opportunity cost - CORRECT ANSWER-Next best alternative--it is what is given
up when a choice is made
Who is hurt the most and the least with inflation - CORRECT ANSWER-
Creditors, people living on fixed income, and people trying to save are hurt the
most. People who owe a significant debt are benefitted
Role of the Treasury Department - CORRECT ANSWER-Collects taxes, prints
money, issues treasury bonds
Pay yourself first - CORRECT ANSWER-Automatically route money from
paycheck to savings (before paying bills)
CD: What is it and what happens if you cash it before maturity - CORRECT
ANSWER-It is a time deposit offered at financial institutions--penalty if cashed
before maturity
Institutions that give loans - CORRECT ANSWER-Banks, credit unions,
pawnshops, finance companies, payday lenders, and tax preparers
Test Practice Exam Questions and
Answers 100% Pass
Sources of Income - CORRECT ANSWER-Wages, rentals, interest, capital,
profit, investments, entrepreneurship
Exemption (allowance) and how it works - CORRECT ANSWER-Allowance is
used to reduce amount of taxed income
Liquidity - CORRECT 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)
- CORRECT ANSWER-closed loop system and open loop system
Discretionary income or budget surplus - CORRECT ANSWER-Not allocated for
food or shelter
Money orders (high rate of counterfeits) - CORRECT 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 it is not tied to a commodity -
CORRECT ANSWER-There is a belief that money has value and there fore is
accepted
Opportunity cost - CORRECT ANSWER-Next best alternative--it is what is given
up when a choice is made
Who is hurt the most and the least with inflation - CORRECT ANSWER-
Creditors, people living on fixed income, and people trying to save are hurt the
most. People who owe a significant debt are benefitted
Role of the Treasury Department - CORRECT ANSWER-Collects taxes, prints
money, issues treasury bonds
Pay yourself first - CORRECT ANSWER-Automatically route money from
paycheck to savings (before paying bills)
CD: What is it and what happens if you cash it before maturity - CORRECT
ANSWER-It is a time deposit offered at financial institutions--penalty if cashed
before maturity
Institutions that give loans - CORRECT ANSWER-Banks, credit unions,
pawnshops, finance companies, payday lenders, and tax preparers
