Ch.10 Personal Finance Test

Withholdings and deductions are . . .

• A. Examples of deficit spending

• B. Expenses that are taken out of your paycheck

• C. Categories of a good budget

• D. Money that the government gives back to you

The tax on the purchase of goods or services is called ?

• A. Consumption tax

• B. Purchase tax

• C. Income tax

• D. Goods and services tax

The money you earn hourly for your time and effort at work is called your ?

• A. Wages

• B. Salary

• C. Minimum wage

• D. Income tax

What does the Form W-4 estimate?

• A. How much tax you'll owe based on your personal situation.

• B. How much income you should be making.

• C. How much money you'll spend in that fiscal year.

• D. How many tax returns you need to submit.

Every American who earns an income must file a each year....

• A. Tax deduction

• B. Paycheck

• C. Tax extension

• D. Federal tax return

When you make money, you will pay in taxes.....

• A. More; more

• B. More; less

• C. Less; more

• D. More; the same amount

If you work and earn money, you will have to pay taxes.

• True

• False

When you buy clothes or check out at the grocery store, you will pay .....

• A. With your tax credit card

• B. Sales tax

• C. Excise tax

• D. Income tax

A fixed, annual rate of pay that doesn't change by working more or fewer hours is called ?

• A. Salary

• B. Hourly wages

• C. Passive income

• D. Commission

When someone says they need to file their taxes, they're talking about filling out a ?

• A. Federal tax return

• B. Form W-4

• C. Tax liability

• D. Tax bracket