Unit 2 Review

Isaiah has a summer internship at a marketing firm and is paid $4,000. After Federal and state taxes, Social Security, and Medicare are deducted, his take-home pay is $3,200. Which of the statements below is correct?

• His gross and net pay are equal

• His gross pay is higher than his net pay

• His gross pay is less than his net pay

• His gross and net pay are the same thing

Soft skills can be best described as...

• Skills that are unimportant to employers

• Skills that are easy to demonstrate and measure

• Skills that allow a person to work effectively with others

• Skills that apply only to a specific position

Which of the following scenarios best describes the 401(k) matching benefit?

• Esme’s employer guarantees a fixed rate of return on her 401(k) investments

• Esme’s employer offers a low-interest personal loan using her 401(k) as collateral

• Esme’s employer will contribute money to her 401(k) based on how much she contributes

• Esme’s employer will split her paycheck evenly between her checking account and her 401(k)

What is the purpose of a 401(k) plan?

• To pay for medical expenses

• To develop new skills relevant to your job

• To improve your chances of getting an interview

• To save for retirement

Juanita has a part-time job that pays $15/hour and works about 40 hours every month. Her withholdings are Social Security (6.2%), Medicare (1.45%), and federal income tax (12%). What is her approximate net pay?

• Rate x Hours= Gross pay

• Social Security: 6.2% of Gross Pay = Gross Pay × 0.062

• Medicare: 1.45% of Gross Pay = Gross Pay × 0.0145

• Federal income tax: 12% of Gross Pay = Gross Pay × 0.12

• $600

• $500

• $485

• $120

What is a potential benefit of comparison shopping?

• You are more likely to find a product that best fits within your budget

• You qualify for a store’s reward program if you take the time to comparison shop on a frequent basis

• You are guaranteed to find a product that meets every criteria that is important to you

• Stores provide a significant discount if they know you took a lot of time to find the best deal

Which description is most accurate for a Zero-Based Budget?

• You put every dollar of your gross pay into a budget category each month

• You spend your checking account balance down to $0 every month

• You put every dollar of your net pay into a budget category each month so it equals 0

• You pay every one of your debts down to $0 every month

What was the net (or take-home) pay for this employee for this pay period?

• $284.79

• $2,2563.11

• $600.00

• $315.21

How much did this person pay towards Medicare in this pay period only?

• $37.29

• $8.23

• $8.70

• $34.50

How frequently is this employee paid?

• Daily

• Weekly

• Twice per month

• Monthly