Wise Financial Literacy Test
Study Guide Questions and
Answers 100% Pass
Sources of income - CORRECT ANSWER-Wages and tips, capital gains, savings
and investment vehicles, gifts, and real estate
Number one source of income - CORRECT ANSWER-Salaries, Wages and tips
Liquidity - CORRECT ANSWER-How easily assets can be converted to cash
Highly liquid products - CORRECT ANSWER-Checking account
Low liquidity products - CORRECT ANSWER-Real estate
Gift cards - CORRECT ANSWER-Preloaded with money and used like
cash/debit card; inactivity fees set in after a year
Discretionary income - CORRECT ANSWER-Money left over after all mandatory
expenses are paid
Budget surplus - CORRECT ANSWER-When you over budget and have money
left over
, Budget variance - CORRECT ANSWER-A difference in what you budgeted and
what you actually spent (can be positive or negative)
Fixed expenses - CORRECT ANSWER-Expenses that remain consistent month
to month (e.g., car payment, mortgage)
Variable expenses - CORRECT ANSWER-Expenses that change month to month
(e.g., utilities, groceries)
Money orders - CORRECT ANSWER-Form of payment you can get at a post
office or store that functions like a guaranteed check
Value of US currency - CORRECT ANSWER-It is backed by the full faith and
credit of the US government
Inflation impact - CORRECT ANSWER-People on fixed incomes are most hurt
by inflation
Pay yourself first - CORRECT ANSWER-After paying for necessary expenses, put
money away in savings
Deposit notification - CORRECT ANSWER-If a person makes a deposit of
$10,000 or more into a bank account, the bank must notify the US Treasury Dept
CD (Certificate of Deposit) - CORRECT ANSWER-A low risk investment
vehicle; cashing it before maturity incurs a penalty fee
Pawn Shops - CORRECT ANSWER-Charge high interest, with a short amount of
time to pay back
Study Guide Questions and
Answers 100% Pass
Sources of income - CORRECT ANSWER-Wages and tips, capital gains, savings
and investment vehicles, gifts, and real estate
Number one source of income - CORRECT ANSWER-Salaries, Wages and tips
Liquidity - CORRECT ANSWER-How easily assets can be converted to cash
Highly liquid products - CORRECT ANSWER-Checking account
Low liquidity products - CORRECT ANSWER-Real estate
Gift cards - CORRECT ANSWER-Preloaded with money and used like
cash/debit card; inactivity fees set in after a year
Discretionary income - CORRECT ANSWER-Money left over after all mandatory
expenses are paid
Budget surplus - CORRECT ANSWER-When you over budget and have money
left over
, Budget variance - CORRECT ANSWER-A difference in what you budgeted and
what you actually spent (can be positive or negative)
Fixed expenses - CORRECT ANSWER-Expenses that remain consistent month
to month (e.g., car payment, mortgage)
Variable expenses - CORRECT ANSWER-Expenses that change month to month
(e.g., utilities, groceries)
Money orders - CORRECT ANSWER-Form of payment you can get at a post
office or store that functions like a guaranteed check
Value of US currency - CORRECT ANSWER-It is backed by the full faith and
credit of the US government
Inflation impact - CORRECT ANSWER-People on fixed incomes are most hurt
by inflation
Pay yourself first - CORRECT ANSWER-After paying for necessary expenses, put
money away in savings
Deposit notification - CORRECT ANSWER-If a person makes a deposit of
$10,000 or more into a bank account, the bank must notify the US Treasury Dept
CD (Certificate of Deposit) - CORRECT ANSWER-A low risk investment
vehicle; cashing it before maturity incurs a penalty fee
Pawn Shops - CORRECT ANSWER-Charge high interest, with a short amount of
time to pay back
