Personal Finance Test Review

What is a pay period?

• time worked beyond an employee’s regular hour

• the number of days an employee works and is paid for each paycheck

• the day a person is paid

• a fixed amount of money an employee is paid to do a job

What is gross pay?

• a pay period of every 2-weeks with 26 pay periods per year

• the amount of money earned before any deductions are subtracted

• the amount of money left in a worker’s paycheck after deductions are taken out

• the amount of money subtracted from a worker’s pay

Which of these is an optional/voluntary deduction?

• healthcare insurance

• state income tax

• Social Security tax

• Medicare tax

Multiplying a worker’s hourly wage amount and hours worked per pay period equals?

• pay period

• salary

• gross pay

• net pay

A fixed amount of money per year paid to an employee to do a job is known as a _____?

• Hourly rate

• Deduction

• Overtime Pay

• Salary

Which of these is the amount of money that remains after taxes have been deducted that a person can save or spend as he or she wishes?

• semi-monthly paycheck

• gross pay

• residents

• disposable income

Which of the following is an advantage of using credit?

• interest and fees

• purchasing power

• finance charges

• overspending

What term means how trusted you are to repay borrowed money?

• open-end credit

• credit risk

• creditworthiness

• FICO

Which of these is not a part of your credit score?

• length of credit history

• payment history

• total amount that you owe

• high school grades

If you have a good credit score, you are more likely to:

• be offered a job

• be offered loans with better terms

• be offered low rates on car insurance

• all of the above