Alabama Financial Literacy Test

Front

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

Back

Net pay

Front

Form used by employers to determine tax deduction from a paycheck.

Back

W-4

Front

Form an employer provides to an employee to inform them of how much money was deducted from paychecks in a given year.

Back

W-2

Front

Which of the following statements best describes gross pay?

Back

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

Front

What is paid for as part of the escrow funds in a mortgage loan?

Back

Property tax

Front

What is needed to open a bank account?

Back

Government-issued identification

Front

What additional cost must be paid in addition to the listed price of a product at a store?

Back

Sales tax

Front

Which of the following best describes the concept of APR?

Back

The credit card interest rate, calculated on a yearly basis

Front

How does a certificate of deposit (CD) differ from a traditional savings account?

Back

CDs must remain untouched for a fixed period of time.

Front

Advantages of bundling insurance EXCEPT?

Back

Increases insurance options