Financial Literacy Final Exam

Front

What is income?

Back

Money earned through work.

Front

Which benefit has the potential to earn you the most money?

Back

Retirement savings plan.

Front

What is the biggest tax you pay?

Back

Federal income tax.

Front

What does 'insufficient funds' mean?

Back

When someone doesn't have enough money in an account to cover a charge.

Front

What happens if too little is withheld on your IRS W-4 Form?

Back

You will owe additional taxes.

Front

What is a withdrawal?

Back

Money taken out of a bank account.

Front

What is an expense?

Back

Money spent on goods and services.

Front

What is a deposit?

Back

Money added to a bank account.

Front

What is compound interest?

Back

Interest calculated on the initial principal and also on the accumulated interest of previous periods.

Front

What is a negative balance?

Back

When the amount of money in an account is below zero.