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

Which of the following is the form employers use to determine how much tax to deduct from a paycheck? W-2, W-4, I-9, W-9

Back

W-4

Front

Which of the following is the form an employer provides to an employee to inform them of how much money was deducted from paychecks in a given year? W-4, I-9, W-2, W-9

Back

W-2

Front

Which of the following statements best describes gross pay? Amount of money one receives from insurance after an illness or accident, Amount of money one receives from their job before taxes or other deductions are taken out, Amount of money one receives from their job after taxes or other deductions are taken out, Amount of money one earns from their job by overtime, bonuses, and reimbursements

Back

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

Front

Which of the following will be paid for as part of the escrow funds included in a mortgage loan? Car insurance, Principal on home loan, Property tax, Home warranty

Back

Property tax

Front

When seeking to open a bank account, which of the following is needed? Blank checks, Government-issued identification, Recommendation letter, School transcript

Back

Government-issued identification

Front

When one is seeking to purchase a product at a store, what additional cost must be paid in addition to the listed price of the product?

Back

Sales tax

Front

Which of the following best describes the concept of APR? Options: Summary of all credit card transactions in one month, The maximum amount one can charge on their credit card, The fee charged if a credit card payment is late, The credit card interest rate, calculated on a yearly basis

Back

The credit card interest rate, calculated on a yearly basis

Front

A certificate of deposit (CD) differs from a traditional savings account in what way?

Back

CDs must remain untouched for a fixed period of time

Front

All of the following are advantages of bundling insurance EXCEPT what? Convenience, Less complicated, Potential saving of money

Back

Increases insurance options