Exam (elaborations)
WISE Financial Literacy Certification Term Review
- Course
- Institution
WISE Financial Literacy Certification Term Review
[Show more]
Seller
Follow
denicetho
Content preview
WISE Financial Literacy Certification TermReview
sources of income - ANS-wages
gifts
government benefits
capital gains
exemption - ANS-a deduction allowed by law to reduce the amount of income that
would otherwise be taxed
liquidity - ANS-the ease in which an asset can be bought or sold
ex. cash, stocks/bonds, checks, gold/precious metals, checking and savings acounts
gift cards - ANS-a card with a specified amount of credit on it redeemable at a specific
store
discretionary income/budget surplus - ANS-the amount of income left for spending after
taxes
money orders - ANS-exchangeable for cash
works like a check
bought if you don't have a bank account
why US currency has value - ANS-the government has declared that money is
acceptable for paying debts
opportunity cost - ANS-the value of the best alternative given up
who is and is not hurt by inflation - ANS-companies and borrowers (not hurt)
workers, recipients of fixed incomes, and savers (hurt)
US treasury department - ANS-manages government revenue
they issue bonds, notes, and bills
pay yourself first - ANS-put money into savings and retirement accounts to avoid
spending it
, certificate of deposit (CD) - ANS-a certificate issued by a bank to a person depositing
money for a specified length of time (at a set interest rate)
avoids holders from withdrawing funds on demand (before it matures)
maturity- when the term ends
if redeemed before matured, you may have to pay a fine or forfeit a portion of the
interest you earned on it
institutions that give loans - ANS-banks, credit unions (low interest)
pawnshops, finance companies, payday lenders, tax preparers (high interest)
credit union - ANS-a non profit-making money cooperative whose members can benefit
from lower interest rates on loan and higher interest rates on investments
overdraft protection - ANS-when you write a check for more than is in your account, the
bank covers it but you have to pay them back for the amount that they covered
compound interest - ANS-interest on the initial deposit + accrued interest
time value of money - ANS-money is less valuable over time unless invested (inflation)
it's better to have money now rather than later
rule of 72 - ANS-72 / interest rate (in %) = doubling time
Endorsement - ANS-Signing the back of a check
reconcile - ANS-Comparing your bank statement to you check register for differences
tax anticipation loans - ANS-loans to be payed back by an anticipated tax return
credit card cash advances - ANS-cash from an ATM charged to a credit card
high interest rates
truth in lending act - ANS-federal law designed to assure that every customer who
needs consumer credit is given meaningful information concerning the cost of such
credit
consequence of paying minimum payment of paying a credit card bill - ANS-credit score
falls
interest rate increases - never seems to be able to pay off card
The benefits of buying summaries with Stuvia:
Guaranteed quality through customer reviews
Stuvia customers have reviewed more than 700,000 summaries. This how you know that you are buying the best documents.
Quick and easy check-out
You can quickly pay through credit card or Stuvia-credit for the summaries. There is no membership needed.
Focus on what matters
Your fellow students write the study notes themselves, which is why the documents are always reliable and up-to-date. This ensures you quickly get to the core!
Frequently asked questions
What do I get when I buy this document?
You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.
Satisfaction guarantee: how does it work?
Our satisfaction guarantee ensures that you always find a study document that suits you well. You fill out a form, and our customer service team takes care of the rest.
Who am I buying these notes from?
Stuvia is a marketplace, so you are not buying this document from us, but from seller denicetho. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy these notes for $9.31. You're not tied to anything after your purchase.
Can Stuvia be trusted?
4.6 stars on Google & Trustpilot (+1000 reviews)
77254 documents were sold in the last 30 days
Founded in 2010, the go-to place to buy study notes for 14 years now