Financial Literacy Quiz

What is the definition of "Gross income"?

• Income after taxes

• Total income before any deductions

• Income from investments only

• Income after retirement contributions

What does "Net income" refer to?

• Total income before taxes

• Income after all deductions

• Income from a side job

• Income before retirement contributions

What is "Disposable income"?

• Income used for savings

• Income after taxes and necessities

• Income before taxes

• Income from investments

What does "FICA" stand for?

• Federal Income Contribution Act

• Federal Insurance Contributions Act

• Federal Investment Contributions Act

• Federal Income Collection Act

What is a "Progressive tax"?

• A tax that decreases as income increases

• A tax that remains constant regardless of income

• A tax that increases as income increases

• A tax that applies only to luxury items

What is a "Regressive Tax"?

• A tax that increases as income increases

• A tax that decreases as income increases

• A tax that remains constant regardless of income

• A tax that applies only to luxury items

What is a "Flat Tax"?

• A tax that increases as income increases

• A tax that decreases as income increases

• A tax that remains constant regardless of income

• A tax that applies only to luxury items

What is a "Proportional Tax"?

• A tax that increases as income increases

• A tax that decreases as income increases

• A tax that remains constant regardless of income

• A tax that is the same percentage of income for everyone

What are "Medicare/Medicaid"?

• Private insurance plans

• Government programs for health coverage

• Investment funds

• Types of savings accounts

What is a "Finance company"?

• A company that provides insurance

• A company that offers loans and credit

• A company that manages investments

• A company that sells stocks