Personal Financial Literacy Review

Select all disadvantages of using a credit cared to make payments.

• Debt is created.

• Fees and interest may be charged.

• Debt is sometimes difficult to repay.

• There are no disadvantages.

• Convenient and easy to use.

When you make a deposit or put money into a bank account, what happens to the amount in your register?

• The amount increases.

• The amount decreases.

• There is no change.

• None of the above.

When trying to balance a simple budget, which of the following is the best possible way to begin?

• Look at your bank statement to see how much income you have each month.

• Subtract your income from your expenses each month.

• Calculate your income for each month and determine how much money is needed for expenses.

• None of the above.

Arthur wants to remodel his home by building a pool in the backyard. Which term best describes the tax that will be affected by the pool addition?

• Payroll tax

• Income tax

• Property tax

• Not here

Julio's budget for next week is shown. 

Which additional item will balance this budget?

• Income: Mowing lawn $20.00

• Income: Babysitting $25.00

• Expense: Clothing $20.00

• Expense: Gasoline $65.00

  CLEAR ALL

Margaret bought an item for $100, but when she saw her receipt, she realized that she actually paid $108.20. Which statement best describes the reason why Margaret paid over $100 for the item?

• She paid sales tax.

• She paid payroll tax.

• She paid income tax.

• She paid property tax.

Angela had her first job in a grocery store. She was able to work 10 hours at a rate of $12.00 per hour and make $120 for the week. However, her pay check was for the amount of $96.00. Which of the following describes this amount?

• Gross Income

• Net Income

• Both a and b

• None of the above

Which of the following describes gross income?

• Gross income is the amount of taxes paid.

• Gross income is the amount of income after taxes are paid.

• Gross income is the amount of income before taxes are paid.

• Gross income is the amount of income for buying goods and services.

John was offered a job with a salary of $500 a week.  When he received his first paycheck, the amount was $412.  Based on this information, which statement might explain the reason for the difference between his $500 salary and his $412 paycheck?

• His gross income was $412 but his net income was $500 because taxes were deducted.

• His gross income was $500 but his net income was $412 because taxes were deducted.

• His gross income was $500 but he received only $412 after his rent was deducted.

• His gross income was $412 because he did not work the entire week.

Tessa wants to move to a new apartment. She created a monthly budget based on her current income and expenses.

• $2,300

• $1,400

• $1,100

• $900