Review for Fin Lit FINAL 2025

The type of tax system that we use in the US is called a ________________tax system.

• preliminary

• productive

• progressive

• none of these

The progressive tax system means that you pay more in taxes as your salary increases.

• TRUE

• FALSE

If you decide to pay more for your insurance deductible, how will this affect your premium?

• it will make it go up

• it will make it go down

• it won't change anything

• it will only change if you get to a very high deductible

Why do you need to fill out a W-4 form?

• to determine if you are eligible to file for taxes

• to determine if you will get a refund

• none of these are the reason for completing a W-4 form

• to determine how much will be taken out of your pay in taxes

The amount of money you're paid AFTER all taxes and deductions are taken out of gross pay:

• gross pay

• total pay

• earned pay

• net pay

The form that you need to complete to file your taxes is the _________form.

• W-4

• W-2

• 1040 form

• employment application

Which type of car insurance would cover you if your car is damaged by a weather-related event (ex: hail, fire, flood)?

• collision

• comprehensive

• bodily injury liability

• property damage liability

Which type of car insurance would coverthe cost of damage to a telephone pole if you hit and damage it with your car?

• collision

• comprehensive

• property damage liability

• bodily injury liability

Which type of car insurance would cover damage to your car if you are in an accident that is your fault?

• collision

• comprehensive

• property damage liability

• bodily injury liability

The minimum amount you can pay on your credit card and still be in "good standing" with your credit card company:

• minimum monthly amount

• grace period

• finance charge

• quarterly payment amount