Career Prep Financial Literacy Quiz

The total money one gets to “take home” from a paycheck after taxes and deductions are taken out is known as what?

• Gross pay

• Federal income tax

• State income tax

• Net pay

Match the following descriptions with the correct financial terms.

• Gross pay

• Amount of money one receives from their job before taxes or other deductions are taken out

• Insurance payout

• Amount of money one earns from their job by overtime, bonuses, and reimbursements

• Net pay

• Amount of money one receives from insurance after an illness or accident

• Additional earnings

• Amount of money one receives from their job after taxes or other deductions are taken out

Match the following terms with their definitions.

• The initial amount of money invested or loaned

• Principal

• Interest earned on interest gained

• Capital

• Wealth in the form of money or assets

• Simple interest

• Interest calculated only on the principal amount

• Compound interest

Which of the following purchasing cards removes funds from one’s checking account almost instantly after one makes a purchase?

• Credit card

• Debit card

• Payroll card

• Withdrawal card

When choosing between using a bank or a credit union, which of the following is an advantage that credit unions generally have in comparison to banks?

• Advanced online banking technology

• Greater variety in services offered

• Owned by members, who may vote and elect board of directors

• More branches/locations

(a)   assists in covering medical expenses associated with short-term illness and accidents.

• Disability insurance
• Health insurance
• Life insurance
• Retirement insurance

The correct sequence in the formation of a contract is (a)  

• Offer, acceptance, agreement, consi
• Agreement, consideration, offer, ac
• Offer, agreement, acceptance, consi
• Offer, acceptance, consideration, a

Sales tax amounts are generally established by which of the following?

• State and local rates

• Federal and state rates

• Federal and local rates

• Business and federal rates

If the value of one’s house increases, all the following will most likely rise EXCEPT:

• House insurance

• Escrow payment

• Mortgage principal

• Property tax

Federal income tax brackets can be impacted by which of the following?

• Voter registration of taxpayer

• Criminal history of taxpayer

• Marriage status of taxpayer

• Region in which taxpayer resides