Wise financia Study guides, Class notes & Summaries

2024 Wise Financial Literacy Test-Solved

WISE Financial Literacy Certification Test with Verified Solutions What are exemptions (also known as allowances) and how do they function? Exemptions, or allowances, are deductions from your taxable income if you are not a dependent on another’s tax return. Married couples filing jointly can each claim one exemption. These function similarly to deductions but with fewer restrictions. How do exemptions work when claiming dependents? You can claim extra exemptions for each dependen...

WISE Financial Literacy Certification Practice Questions with Complete Solutions If a high school student is considering a career in finance, what is the initial question they should consider? A: Will I be able to balance financial rewards with personal job satisfaction? B: How many acquaintances work in the finance sector? C: How long will it take to achieve top status in this career? D: Are there individuals in this field who are unhappy with their jobs? A: Will I be able to b...

Wise Financial Literacy Certification Test Topic Check List Graded A+ What are the different ways people can earn income? Income can come from wages, rental properties, interest, investments, business profits, and entrepreneurial activities. How does an exemption (also known as an allowance) function in taxation? An exemption reduces the portion of your income that is subject to taxes. What is liquidity, and what are examples of liquid assets? Liquidity refers to how easily asset...

WISE Financial Literacy Practice Test Questions with Verified Solutions What tool does the Federal Reserve use to control the country's money supply? It utilizes monetary policy. Which of these is an example of an electronic funds transfer (EFT)? Transactions made at an ATM. Scott needs to set a PIN (Personal Identification Number) for his new ATM card. What method should he use to ensure the highest level of security for his PIN? He should create a random combination of numbers a...

WISE Financial Literacy Certification Term Review with Complete Solutions What does an exemption refer to in terms of taxation? It is a legal deduction that lowers the amount of income subject to tax. What is a gift card and how does it function? A gift card is a prepaid card with a fixed amount of credit that can be used for purchases at a designated store. What does discretionary income or a budget surplus represent? It is the portion of income available for spending after taxes ...

Earned Income - Answer- Income derived from active participation in a trade or business, including wages, salary, tips, commissions and bonuses. Unearned Income - Answer- Any income that comes from investments and other sources unrelated to employment services. Examples: interest from a savings account, bond interest, alimony, and dividends from stock Exemptions (aka allowance) and how they work - Answer- If you are not claimed as a dependent on another taxpayer's return, then you can ...

Wise Financial Literacy Practice Test with Complete Solutions What do banks typically do with the funds deposited into savings accounts? A. Use them to purchase government securities B. Invest them in international markets C. Provide loans to individuals and businesses D. Store them in reserve for emergencies C. Provide loans to individuals and businesses. Banks act as intermediaries, channeling funds from savers to borrowers. Which type of financial instrument may offer divid...

Wise Financial Literacy Questions and Answers Already Passed What is the first step a person should take to manage their spending effectively? They should develop a budget that outlines their current income and expenses. Why is it important to compare prices when shopping for a car? Car prices can vary significantly, making comparison shopping essential. Why do financial advisors often recommend starting to save and invest early? This is due to the benefits of compounding and the ...