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W!SE Financial Literacy Certification exam with correct answers
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W!SE Financial Literacy Certification exam with correct answers
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W!SE Financial Literacy CertificationExam With Correct Answers
sources of income - Correct Answer - wages, stocks, interest, salary
exemption - Correct Answer - a deduction allowing to reduce the amount of your income that would be
taxed
liquidity - Correct Answer - access to money fast
discretionary income - Correct Answer - extra money you can use for anything
money orders - Correct Answer - bought @ bank; if you don't trust the lender of money
Why does US currency have value - Correct Answer - because we agree it does
opportunity cost - Correct Answer - the loss of potential gain of other alternatives when one alternative
is chosen
who is the most hurt and least hurt with inflation? - Correct Answer - biggest losers- those with fixed
income
winners- those who are priced out of the loan market
role of US treasury department - Correct Answer - print money, collect taxes through IRS, look at
national debt
, PYF - Correct Answer - pay yourself first- put some money in the bank then pay bills
CD - Correct Answer - certificate of deposit- a time deposit that pays a fixed rate of interest for a specific
length of time
institutions that give loans - Correct Answer - banks, credit unions, pawnshops, finance companies, etc.
which institutions charge the highest interest rate on loans? - Correct Answer - in most cases: a bank
what is a credit union? - Correct Answer - a nonprofit organization whose members can borrow from
pooled deposits at low interest rates
what is an advantage of using a credit union? - Correct Answer - credit unions can offer higher savings
rates
members own credit
overdraft protection - Correct Answer - when you write a check greater than money you have in your
account bank will pay who you wrote a check to
compound interest - Correct Answer - interest on you money
time value of money - Correct Answer - a dollar today is worth less tomorrow
liquid financial products vs. products that are less liquid - Correct Answer - checking account vs. CD
rule of 72 - Correct Answer - interest/72= time it takes to double
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