WISE Financial Literacy Certification Test
Practice Latest Exams And Answers 2024
Sources of Income - correct answers✅Wages, rentals, interest,
capital, profit, investments, entrepreneurship
Exemption (allowance) and how it works - correct
answers✅Allowance is used to reduce amount of taxed income
Liquidity - correct answers✅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 answers✅closed loop system and
open loop system
Discretionary income or budget surplus - correct answers✅Not
allocated for food or shelter
Money orders (high rate of counterfeits) - correct answers✅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 answers✅There is a belief that money
has value and there fore is accepted
, WISE Financial Literacy Certification Test
Practice Latest Exams And Answers 2024
Opportunity cost - correct answers✅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
answers✅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 answers✅Collects
taxes, prints money, issues treasury bonds
Pay yourself first - correct answers✅Automatically route money
from paycheck to savings (before paying bills)
CD: What is it and what happens if you cash it before maturity -
correct answers✅It is a time deposit offered at financial
institutions--penalty if cashed before maturity
Institutions that give loans - correct answers✅Banks, credit
unions, pawnshops, finance companies, payday lenders, and tax
preparers
Which institution(s) charge the highest interest rates on loans -
correct answers✅Pawnshops, payday lenders, tax refund
lenders, and finance companies
Practice Latest Exams And Answers 2024
Sources of Income - correct answers✅Wages, rentals, interest,
capital, profit, investments, entrepreneurship
Exemption (allowance) and how it works - correct
answers✅Allowance is used to reduce amount of taxed income
Liquidity - correct answers✅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 answers✅closed loop system and
open loop system
Discretionary income or budget surplus - correct answers✅Not
allocated for food or shelter
Money orders (high rate of counterfeits) - correct answers✅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 answers✅There is a belief that money
has value and there fore is accepted
, WISE Financial Literacy Certification Test
Practice Latest Exams And Answers 2024
Opportunity cost - correct answers✅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
answers✅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 answers✅Collects
taxes, prints money, issues treasury bonds
Pay yourself first - correct answers✅Automatically route money
from paycheck to savings (before paying bills)
CD: What is it and what happens if you cash it before maturity -
correct answers✅It is a time deposit offered at financial
institutions--penalty if cashed before maturity
Institutions that give loans - correct answers✅Banks, credit
unions, pawnshops, finance companies, payday lenders, and tax
preparers
Which institution(s) charge the highest interest rates on loans -
correct answers✅Pawnshops, payday lenders, tax refund
lenders, and finance companies
