W!SE Terms Mixed Review

The term that best describes money left over after paying taxes, fixed and other essential living expenses, is:

• Net Pay
• Net Surplus
• Play Money
• Discretionary Income

What is the difference in a bank and a credit union?

• Credit unions are member owned.

• Banks are non-profit

• Credit unions are for profit

• Banks deal with less cash than credit unions.

Which factor would most likely lead to an increase in the interest rate on a person's credit card?

• number of purchases
• late payments
• number of cash advances
• total amount charged

The National Credit Union Administration (NCUA) insures accounts in:

• Credit unions
• Savings banks
• Brokerage firms
• Commercial banks

Using someone else's money, promising to repay at a future date, and paying a fee for use of the money, is the definition for:

• credit
• taxation
• investing 
• interest

Collateral is 

• required for all loans
• a form of credit
• something that explains your net worth
• something of value that secures a loan to protect the lender

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

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

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.