W!SE Exam Review I

The best reason for depositing money in a bank or credit union savings account instead of keeping your money “under the mattress” is that

• It is insured.

• It earns interest.

• It is safer.

• It grows.

The central banking system in the United States.

• Federal Reserve

• The U.S. Treasury

• The Mint

• First National Bank of the U.S.

What is an ATM used for?

• Withdraw money

• Balance your checkbook

• Order checks

• Write checks

Who insures bank deposits?

• Federal Deposit Insurance Corporation (FDIC)

• National Credit Union Administration (NCUA)

• Federal Reserve

• U.S. Treasury Department

A term that best best describes your gross pay after taxes are deducted is:

• Take-Home Pay
• Net Worth
• Assets
• Total Revenues

The amount withheld by an employer from an employee's earnings. Typically includes income taxes, FICA taxes, Group Insurance, Pension Contributions, etc.

• Excise Tax
• Payroll Deductions
• Indirect Tax
• Proportional Tax

A tax paid directly by an individual or organization to the government (property taxes, income taxes)

• Indirect Tax
• Direct Tax
• Net Income
• Sales Tax

A tax paid to the government by one entity (like a business) in the supply chain, but is passed on to consumers as part of the price for the good/service. (sales tax)

• Indirect Tax
• Direct Tax
• Progressive Tax
• Proportional Tax

Also called "sin taxes," taxes paid on the purchase of goods to encourage or discourage societal behaviors.

• Sales Tax
• Progressive Tax
• Proportional Tax
• Excise Tax

A tax in which the tax rate increases as the taxable amount increases.

• Indirect Tax
• Sales Tax
• Progressive Tax
• Regressive Tax