WISE Financial Literacy Exam
Study Guide 2026 Exam All
Answers and Illustrations Given
Cash - 🧠ANSWER ✔✔Also known as 'green back'.
Check - 🧠ANSWER ✔✔A written 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. It is a guarenteed check, backed by
the bank or post office that issued it.
,Debit/ATM Card - 🧠ANSWER ✔✔A card that requires a pin number to
withdraw money from your checking account. You may pay a fee to use
your Debit card at certain ATM machines that are not aligned with your
bank.
Credit Card - 🧠ANSWER ✔✔A card used to borrow money from a
company, charged interest on unpaid balance. You will have a limit, you
can spend up to that limit, pay it down, and spend again = REVOLVING
CREDIT.
Gift Card - 🧠ANSWER ✔✔A card bought to spend at a certain store, which
may charge a fee after 12 months.
Pay Card - 🧠ANSWER ✔✔A prepaid card used by employers to pay
employees, functioning like a debit card.
Liquidity - 🧠ANSWER ✔✔The degree to which an asset can be quickly
converted to cash; cash is the most liquid asset. A home that you own is
not very liquid- because it will take time to sell it in order to turn it into cash.
Earned Income - 🧠ANSWER ✔✔Income derived from employment wages
and salaries.
, Unearned Income - 🧠ANSWER ✔✔Income from sources other than
employment, such as investments and gifts.
Windfall Income - 🧠ANSWER ✔✔Unexpected additional income over
expenses.
Fringe Benefits - 🧠ANSWER ✔✔Additional benefits provided by employers,
such as health insurance and educational assistance.
Barter - 🧠ANSWER ✔✔The exchange of goods without involving money.
Trading goods or services.
Gross Pay - 🧠ANSWER ✔✔Total earnings before any deductions are
subtracted.
Net Pay - 🧠ANSWER ✔✔The amount of a paycheck after deductions, also
known as take-home pay.
Sales Tax - 🧠ANSWER ✔✔A tax levied on goods and services purchased,
going to the state government.
Property Tax - 🧠ANSWER ✔✔A tax levied on homes and cars, funding
local government.
COPYRIGHT©NINJANERD 2025/2026. YEAR PUBLISHED 2026. COMPANY REGISTRATION NUMBER: 619652435. TERMS OF USE. PRIVACY
STATEMENT. ALL RIGHTS RESERVED
3
Study Guide 2026 Exam All
Answers and Illustrations Given
Cash - 🧠ANSWER ✔✔Also known as 'green back'.
Check - 🧠ANSWER ✔✔A written 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. It is a guarenteed check, backed by
the bank or post office that issued it.
,Debit/ATM Card - 🧠ANSWER ✔✔A card that requires a pin number to
withdraw money from your checking account. You may pay a fee to use
your Debit card at certain ATM machines that are not aligned with your
bank.
Credit Card - 🧠ANSWER ✔✔A card used to borrow money from a
company, charged interest on unpaid balance. You will have a limit, you
can spend up to that limit, pay it down, and spend again = REVOLVING
CREDIT.
Gift Card - 🧠ANSWER ✔✔A card bought to spend at a certain store, which
may charge a fee after 12 months.
Pay Card - 🧠ANSWER ✔✔A prepaid card used by employers to pay
employees, functioning like a debit card.
Liquidity - 🧠ANSWER ✔✔The degree to which an asset can be quickly
converted to cash; cash is the most liquid asset. A home that you own is
not very liquid- because it will take time to sell it in order to turn it into cash.
Earned Income - 🧠ANSWER ✔✔Income derived from employment wages
and salaries.
, Unearned Income - 🧠ANSWER ✔✔Income from sources other than
employment, such as investments and gifts.
Windfall Income - 🧠ANSWER ✔✔Unexpected additional income over
expenses.
Fringe Benefits - 🧠ANSWER ✔✔Additional benefits provided by employers,
such as health insurance and educational assistance.
Barter - 🧠ANSWER ✔✔The exchange of goods without involving money.
Trading goods or services.
Gross Pay - 🧠ANSWER ✔✔Total earnings before any deductions are
subtracted.
Net Pay - 🧠ANSWER ✔✔The amount of a paycheck after deductions, also
known as take-home pay.
Sales Tax - 🧠ANSWER ✔✔A tax levied on goods and services purchased,
going to the state government.
Property Tax - 🧠ANSWER ✔✔A tax levied on homes and cars, funding
local government.
COPYRIGHT©NINJANERD 2025/2026. YEAR PUBLISHED 2026. COMPANY REGISTRATION NUMBER: 619652435. TERMS OF USE. PRIVACY
STATEMENT. ALL RIGHTS RESERVED
3
