Module III Prep

What is another name for "take home pay"?

• Net pay

• Salary

• Wages

• Gross pay

People who get a college or professional degree increase their _________ and _________.

• unearned income; resources

• opportunity costs; trade-offs

• market value; income potential

• earned income; interest

Dean works as an Advertising Sales Executive for WHSV-TV3 in Winchester. He gets paid 40% of the value of every advertising contract he gets for the TV station. This method of earning pay is referred to as:

• salary

• bonus

• wages

• commission

Juan is considering job offers from four companies, each of which will pay him $50,000 a year. If Juan is most interested in his career advancement, at which company would he most likely chose to work?

• Company A that offers him health benefits

• Company C that gives him flexible work hours and holidays

• Company D that enrolls him in an executive training program

• Company B that provides him with a company car to drive

You are employed, but your income is low because you have few job skills. What would be the best action to take to increase your income?

• Apply for a credit card.

• Get more training.

• Look for another similar job.

• Stay with the current job.

Which of the following is not considered part of a worker’s earned income?

• sales commission

• year-end bonuses

• health insurance

• wages and tips

Which type of student loan usually has better terms?

• Student loan from a bank or private lending institution

• Federal student loan

What's the name of the form you have to fill out to apply for college financial aid from the federal government?

• a Federal Student Loan Application (FSLA)

• a Government College Aid Form (GCAF)

• a Free Application for Federal Student Aid (FAFSA)

Which of the following is NOT an example of an employee benefit?

• Profit sharing

• Sick pay

• Salary

• Vacation time

Which of the following is TRUE about 529 College Savings Plans?

• Money in a 529 college savings plan cannot be transferred to other family members.

• 529 college savings plans offer low minimum contributions and high maximum limits.

• You’ll forfeit your 529 plan savings if your child doesn’t go to college.

• You can only use your 529 college savings plan at state universities.