Chapter 3 Financial Literacy Review

When it comes to selecting the right career, it is important to consider all of the following except:

• Your interests

• Your strengths

• What you love to do

• Which career your best friend has selected

Which of the following is NOT a good way to discover information about a career that seems interesting to you?

• Ask questions to someone in that career

• Search the internet for information

• Pick a career from a help-wanted ad

• Job shadowing or an internship in that career

Studies show that you are likely to make more money over your lifetime with a college degree.

• True

• False

All professions require a four-year college degree.

• True

• False

Non-wage compensation provided by your employer is called your:

• Withholdings

• Employee benefits

• Take-home pay

• Income

The amount of money you get in your paycheck after taxes are taken out is called your:

• Take-home pay

• Withholdings

• Benefit pay

• gross income

Money which is taken out from your paycheck for taxes is called:

• Employee benefits

• Take-home pay

• Withholding

• Net pay

Which are the correct amounts withheld for social security and Medicare taxes from a person's paycheck?

• Social Security Tax (8.2%), Medicare tax (2.45%)

• Social Security Tax (10.2%), Medicare tax (4.45%)

• Social Security Tax (3.2%), Medicare tax (3.45%)

• Social Security Tax (6.2%), Medicare tax (1.45%)

Someone who starts and runs his or her own business is called a(n):

• Entrepreneur

• Creditor

• Employee

• Manager

What percentage of teens wants to start their own business?

• 10%

• 27%

• 42%

• 75%