Financial Literacy Quiz

After taxes and deductions, what is the money you actually get to spend called?

• Gross pay

• Federal income tax

• State income tax

• Net pay

Which form do new employees fill out so their employer knows how much tax to withhold?

• W-2

• W-4

• I-9

• W-9

Which form does an employer give at the end of the year to show how much money was taken out for taxes?

• W-4

• I-9

• W-2

• W-9

Noah sees that his gross pay is different from what he takes home. What is gross pay?

• Amount of money one receives from insurance after an illness or accident

• Amount of money one receives from their job before taxes or other deductions are taken out

• Amount of money one receives from their job after taxes or other deductions are taken out

• Amount of money one earns from their job by overtime, bonuses, and reimbursements

Olivia has a mortgage loan. Some costs are paid through escrow funds included in her monthly payment. Which of the following is paid from escrow funds?

• Car insurance

• Principal on home loan

• Property tax

• Home warranty

What do James, Oliver, and Benjamin need to bring to open bank accounts?

• Blank checks

• Government-issued identification

• Recommendation letter

• School transcript

What extra cost do you pay at checkout besides the listed price?

• Insurance

• Interest

• Purchasing fee

• Sales tax

What does "APR" mean on a credit card statement?

• Summary of all credit card transactions in one month

• The maximum amount one can charge on their credit card

• The fee charged if a credit card payment is late

• The credit card interest rate, calculated on a yearly basis

How does a certificate of deposit (CD) differ from a traditional savings account?

• CDs are a riskier investment

• CDs include the purchase of stocks

• CDs have a low interest rate

• CDs must remain untouched for a fixed period of time

Which of the following is NOT a real benefit of bundling home and auto insurance?

• Convenience

• Increases insurance options

• Less complicated

• Potential saving of money