Financial Literacy Review (Instructional Cycle 2)

Which of the following is an example of a short-term financial goal?

• Saving money to buy a video game

• Getting accepted to college

• Saving for retirement

• Passing all of your classes this semester.

A ___________ is an amount of money you've set aside in case of an emergency.

• will

• risk policy

• premium

• reserve

What does the Social Security tax provide money for?

• Medical benefits for people ages 65 and over

• Unemployment

• Income for retired and disabled people and their families

• FUTA

Which of the following is not a source of unearned income?

• Money gained by making an investment

• $10 that you received for your birthday

• Money received from the hours you worked this month

• Income you receive from a rental property

Real estate tax, a tax based on the value of the land and the buildings owned by its taxpayers, is a good example of _____.

• sales tax

• income tax

• wealth tax

• property tax

Which of the following is a liability?

• bonus paycheck

• credit card balance

• investment fund

• savings account

Which of the following increases liabilities but not assets?

• Taking out a loan to buy a new car

• Taking out a loan to go on vacation

• Paying off a student loan

• Using a credit card to buy a computer

Net pay vs gross pay.... which is BEFORE taxes and deductions?

• Net pay

• Gross pay