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WISE Exam Study Guide Questions And Correct Answers
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WISE Exam Study Guide Questions And Correct Answers...
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WISE Exam Study Guide Questions AndCorrect Answers
Cash - Answer a.k.a. green back
Check - Answer written as a promise to pay money from your bank account.
Money order - Answer a printed order for payment of a specified sum, issued by a bank
or post office. (These have a high rate of counterfeits.)
Debit/ATM card - Answer need a pin number to withdraw money from your bank account
Credit card-Answer lending money from company charged interest on outstanding
balance
Gift card -Answer card purchased to spend in store, could have a fee after 12 months
Pay card - A prepaid card an employer can use as an alternative to pay employees by
direct deposit or paper check. An employee can access their money on a pay card as
though it were a debit card or they can withdraw their wages from the pay card. Pay
cards charge fees for many ATM withdrawals, statements and inactivity.
Why does U.S. currency have value? - Answer Originally backed by an equivalent
amount of gold, today's money is called "fiat" money. There really isn't any good reason
for the money to have value; people simply trust in our government and economy to
believe in its value.
Currency Faces: $1 - Answer George Washington
,Currency Faces: $5 - Answer Abraham Lincoln
Currency Faces: $10 - Answer Alexander Hamilton
Currency Faces: $20 - Answer Andrew Jackson (Harriet Tubman in 2020)
Currency Faces: $50 - Answer Ulysses S. Grant
Currency Faces: $100 - Answer Benjamin Franklin.
Liquidity - Answer the degree to which an asset "flows" to purchase things. Cash is the
most liquid asset, while real estate, fine art, and collectibles are illiquid (not liquid).
Earned income - Answer is from employment wages and salaries.
Where, earned income refers to income through wages, salaries, professions, etc.
Greater the knowledge, skills, and experience higher the income earned from these
sources. Unearned income - Answewr is derived from all other sources, such as
investments, interest on savings, gifts, lottery, inheritance, etc. Windfall Income -
Answer any kind of extra income over expenses that is entirely unexpected.
Benefits - Answer fringe benefits, such as health insurance, life insurance, educational
assistance, childcare reimbursement, employee stock options, use of a company-owned
vehicle and others.
Barter - Answer the exchange of goods without using money
Gross Pay - Answer the total amount you earn before any deductions are subtracted,
the gross pay is $30 because you worked 3 hrs for $10/hour
, Net Pay-Answer amount of a paycheck after the deductions (taxes and FICA) are taken
from it, a.k.a. Take home pay.
Taxes - Answer are collected by the government to provide services such as military,
education, roads, and bridges; all citizens benefit from these services.
Sales Tax - Answer is paid on goods and services you buy. This goes to the state
government.
Property Tax-Answer is levied on houses and cars. These revenues go to the local
government.
Income Tax - Answer is levied on your income or wages and interest earned. These go to
federal and state governments.
Internal Revenue Service IRS -Answer This is the body that collects taxes on behalf of
the federal government.
Taxes on income in the United States are graduated income taxes, or progressive
income tax meaning the more you earn, the larger percentage you pay.
Capital Gains Tax Answer is paid on the sale of assets (such as a home or stocks).
Social Security Definition Answer is a federal insurance program for retired people and
those who are unemployed or disabled.
Medicare - Answer is a federal health insurance program for people who are 65 or older
and people with disabilities.
Social Security & Medicare together are called - Answer FICA taxes and are an income
tax deducted from your paycheck.
W4 - Answer You fill this out on the first day of a job to determine how much tax will be
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