NEW Personal Finance Final Exam

Which of these best describes the difference between gross pay and net pay?

• Gross pay is the amount you make the entire year and net pay is the amount you make on each paycheck

• Gross pay is the amount your employer pays you and net pay is the amount of taxes you pay the government

• Gross pay includes salary, tips, commissions, and bonus, while net pay is just your salary

• Gross pay is the entire amount you earn that pay period, and net pay is the amount you take home after taxes and other deductions are paid

Which set of items would be appropriate to include on your resume during high school.

• Education, computer skills, starting salary request

• Volunteer experience, sports team participation, computer skills

• Requested vacation days, education, special dietary needs

• Education, scheduling requests, personal references

You receive this form when you start a job. You use it to prove you are eligible to work in the US.

• I-9

• 1099

• 1040EZ

• W-4

When do you start paying taxes?

• When you turn 18

• When you make more than the minimum income requirement

• When you get a full-time job (part-time does not count)

• When you are notified by the IRS that you are required to pay federal income taxes

Which of the following does NOT describe what a "dependent" is for tax purposes?

• Children under the age of 18

• Anyone permanently disabled

• All students

• Full-time students under the age of 24

The largest source of fees for banks when it comes to checking accounts.

• Overdraft fees

• Wire transfer fees

• Check printing fees

• Interest expense

If following the 50-20-30 rule - 50% goes towards ___, 20% goes towards ___, and 30% goes towards ____.

• needs, wants, savings

• savings, needs, wants

• needs, savings, wants

• wants, needs, savings

When a bank says their savings account earns 2% interest. That means you're earning 2% over the course of a ___

• Day

• Week

• Month

• Year

Which of the formulas below equate to net price?

• Sticker price - student loans

• Grants/scholarships + student loans

• Sticker price - grants and scholarships

• Sticker price + grants and scholarships

Which of these payment terms will likely lead to you paying the LEAST interest?

• 5 years

• 10 years

• 15 years

• 20 years