W!SE Financial Literacy Money Vocabulary

What is a cashless society?

• A system where all transactions are done using physical cash

• A system where all transactions are conducted electronically

• A system where no transactions are allowed

• A system where only large transactions are allowed

What are gross wages?

• The amount of money after taxes are deducted

• The total amount of money an employee earns before any deductions

• The amount of money after insurance is deducted

• The amount of money after retirement contributions are deducted

What is garnishment?

• A bonus given by the employer

• A legal process where a portion of wages is withheld for debt payment

• A reward for excellent performance

• A tax deduction

What does human capital refer to?

• The total amount of money an employee earns

• The economic value of a worker's skills, knowledge, and experiences

• The amount of money after taxes are deducted

• The physical assets owned by a company

What is net pay?

• The total amount of money before deductions

• The amount of money an employee takes home after all deductions

• The amount of money after only tax deductions

• The amount of money after only insurance deductions

What are payroll deductions?

• Bonuses added to an employee's salary

• Amounts withheld from gross wages for taxes and other contributions

• Extra payments made by the employer

• Voluntary contributions to a retirement fund

What are payroll exemptions?

• Allowances on tax forms that reduce taxable income

• Extra payments made by the employer

• Bonuses given for excellent performance

• Deductions for health insurance

What is the Social Security Tax (FICA)?

• A tax that funds only Medicare

• A payroll tax that funds Social Security and Medicare

• A tax that funds only Social Security

• A tax that funds retirement contributions

What is the role of the United States Treasury Department?

• Managing only the nation's currency

• Overseeing only the issuance of debt

• Managing the nation's finances and enforcing financial laws

• Collecting only state taxes

What does more payroll exemptions typically mean?

• More tax is withheld from each paycheck

• Less tax is withheld from each paycheck

• No tax is withheld from each paycheck

• The same amount of tax is withheld from each paycheck