Everfi: Employment, Taxes, Banks, Credit, and Debt

Which of the following statements is true about education and lifetime earnings?

• Generally, the more education you receive, the higher your lifetime earnings will be.
• There is no relationship between the level of education received and lifetime earnings.
• Generally, the less education you receive, the higher your lifetime earnings will be.
• Generally, the more education you receive, the lower your lifetime earnings will be.

What is net pay?

• The amount of pay earned for the total number of hours worked.
• The amount of money you're paid after all taxes and deductions are taken out of your paycheck.
• The amount of money you're paid before all taxes and deductions are taken out of your paycheck.
• Your gross pay plus any bonuses.

What is the difference between gross and net pay?

• Gross pay is after taxes are subtracted but net pay is before taxes are taken out.
• Gross pay is before taxes are subtracted but net pay is after taxes are taken out.
• Gross and net pay are basically the same things.
• Net pay is a salary and gross pay is from hourly wages

Which of the following is NOT a possible tax or deduction that could be withdrawn from your paycheck?

• State income tax
• Contributions to retirement savings
• FICA
• Sales tax

What is the purpose of the W-4 form?

• To file your tax return.
• To determine how much your gross pay should be.
• To inform your employer of how much federal income tax to withhold from your paychecks.
• To avoid paying income taxes on your paychecks.

Your employer sends you a _______ form that tells you how much you've made and how much you've paid in taxes in the last year.

• 1040
• W-2
• W-4
• W-9

What does the W-2 form tell you?

• How much you've earned and how much taxes you've paid in the last year
• When to file your tax return.
• How much federal income tax your employer will withhold from your paycheck.
• How often your employer will be paying you.

Which of the following statements is true about taxes?

• Taxes pay for schools, first responders, and roads.
• Taxes pay toll road fees and office buildings.
• Taxes are only collected by the federal government.
• Taxes are only collected by state governments.

Which type of bank account typically offers the least (if any) interest?

• checking account
• savings account
• money market account

Which type of bank account is best if you want some growth on your money?

• checking account
• savings account
• money market account