Financial Literacy 2nd 9 weeks Test

Front

What is gross pay?

Back

Gross pay is the total amount of money earned by an employee before any deductions, such as taxes or retirement contributions.

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How do you calculate state tax withholding?

Back

To calculate state tax withholding, multiply the gross pay by the state income tax rate.

Front

What are fixed expenses?

Back

Fixed expenses are regular, recurring costs that do not change in amount, such as rent and car payments.

Front

What is a deposit in banking?

Back

A deposit is money added to a bank account, increasing the account balance.

Front

What is the formula for calculating interest?

Back

The formula for calculating interest is I = PRT, where I is interest, P is principal, R is rate, and T is time.

Front

What is the difference between a deposit and a withdrawal?

Back

A deposit adds money to an account, while a withdrawal takes money out of an account.

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What is a checking account?

Back

A checking account is a bank account that allows for deposits and withdrawals, typically used for daily transactions.

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What is the purpose of a budget?

Back

A budget is a plan that outlines expected income and expenses to help manage finances.

Front

What are variable expenses?

Back

Variable expenses are costs that can change from month to month, such as groceries and entertainment.

Front

What does 'net pay' mean?

Back

Net pay is the amount of money an employee takes home after all deductions are made from gross pay.