Quiz about Financial Literacy Midterm

Question 1

Last month, Jorge was paid a total of $9,000, which included a bonus of $1,500. What is Jorge's gross bimonthly pay during a month when a bonus is not paid?

Accepted Answer

$3,750

Answer

$7,500

Answer

$5,250

Answer

$9,000

Question 2

A greater withholding allowance results in ________________.

Accepted Answer

a larger amount of take-home pay

Answer

a smaller amount of take-home pay

Answer

more taxable income

Answer

less taxable income

Question 3

Jeffery worked 48 hours this week. His regular hourly wage is $18.50. For every hour each week he works over 40, he is paid 1.5 times his regular hourly wage. What is Jeffery's gross pay for this week?

Accepted Answer

$962

Answer

$1,332

Answer

$888

Answer

$1,850

Question 4

If taxes due are greater than the taxes withheld, then _____________________.

Accepted Answer

money is owed

Answer

money is refunded

Answer

you should make up more donations

Answer

you should get a rapid refund

Question 5

Leona is a real estate agent who earns straight commission based on the homes that she sells. Last month, she sold four homes with sales prices of $144,000, $177,000, $152,000, $193,000. She earned a 3% commission on each sale. What was Leona's total commission?

Accepted Answer

$19,980

Answer

$199.80

Answer

$1,998

Answer

$199,800

Question 6

Bartering is trading one thing of value for another.

Accepted Answer

True

Answer

False

Question 7

Workers who are paid a salary are paid by the hour.

Accepted Answer

False

Answer

True

Question 8

Social security taxes pay for retirement and disability benefits.

Accepted Answer

True

Answer

False

Question 9

A federal income tax return is used to calculate taxes owed to the federal government.

Accepted Answer

True

Answer

False

Question 10

Unearned income is the money a person gets from doing a job.

Accepted Answer

False

Answer

True

Question 11

Use the rule of 72 to find the number of years it will take you to.....

Accepted Answer

double an initial investment.

Answer

pay off a debt.

Answer

reduce the principal you own on a loan.

Answer

have all of the retirement savings you need.

Question 12

Jared has put a video game system on layaway. The cost of the system before taxes is $299. The layaway fee is 1.25% of that price. How much will Jared have to pay before taxes for his new system?

Accepted Answer

$302.74

Answer

$300.25

Answer

$311.50

Answer

$373.75

Question 13

To reconcile a bank statement means to...

Accepted Answer

verify that you and the bank agree on your account balance.

Answer

clear up any overdrafts.

Answer

calculate simple interest charges.

Answer

check your account balance on the bank's website.

Question 14

Net cash flow is the...

Accepted Answer

the difference between cash inflows and outflows.

Answer

total of all cash inflows.

Answer

total of all cash outflows.

Answer

the difference between cash inflows and income.

Question 15

Fixed expenses...

Accepted Answer

stay the same each month.

Answer

are the same as variable expenses.

Answer

should exceed fixed income.

Answer

are the same for everybody

Question 16

The internet can serve as a market.

Accepted Answer

True

Answer

False

Question 17

A budget is a plan for saving and spending.

Accepted Answer

True

Answer

False

Question 18

By purchasing a warranty, you are guaranteed that whatever you purchased will not break.

Accepted Answer

False

Answer

True

Question 19

Digital cash can be stored on a computer or smartphone.

Accepted Answer

True

Answer

False

Question 20

Sales tax is a type of progressive tax.

Accepted Answer

False

Answer

True

Question 21

Which of the following are ways you can be paid by your employer?

Accepted Answer

All of the above

Answer

Hourly wages

Answer

Salary

Answer

Commission

Question 22

Which of the following is true regarding a contract?

Accepted Answer

It defines an agreement between two entities.

Answer

It cannot be oral.

Answer

It can only be used by an independent contractor that does not have unearned income.

Answer

It cannot be used by a company which pays minimum wage.

Question 23

For which of the following would an employer withhold money from an employee's pay?

Accepted Answer

All of the above

Answer

Federal income tax

Answer

Social security tax

Answer

Medicare tax

Question 24

Individuals are required to file a report of their income and the taxes that are owed to the federal government in a(n)...

Accepted Answer

federal tax return

Answer

W-2 form.

Answer

W-4 form

Answer

All of the above

Question 25

What are two main types of accounts at banks?

Accepted Answer

Checking and savings

Answer

Checking and balancing

Answer

Checking and debit

Answer

Savings and borrowing

Question 26

The purpose of reconciling your bank account is to...

Accepted Answer

verify that you agree with your bank on the balance.

Answer

convert simple interest to compound interest.

Answer

get overdraft protection.

Answer

verify that your account complies with federal law.

Question 27

Sales tax rates and laws...

Accepted Answer

vary by state and city.

Answer

are established only by the federal government.

Answer

apply to everything that is purchased.

Answer

do not apply when using a credit card.

Question 28

When making a charge account purchase...

Accepted Answer

the customer promises to pay at a later date.

Answer

a debit card is often used.

Answer

credit limits are rarely involved.

Answer

the customer promises to pay at a later date and does not receive the food or service until a later date.

Question 29

A plan for how your income is going to be used and sent is called...

Accepted Answer

a budget.

Answer

a cash flow statement.

Answer

variable income analysis.

Answer

fixed income analysis.

Question 30

Which of the following is not a cash inflow?

Accepted Answer

Savings

Answer

Paycheck from a salaried job

Answer

Money from sale of stock

Answer

Money received as an inheritance

Question 31

Net cash flow equals...

Accepted Answer

cash inflows minus cash outflows.

Answer

fixed income minus fixed expense.

Answer

fixed income minus variable expense.

Answer

cash inflows plus cash outflows.

Question 32

A flat-rate tax...

Accepted Answer

means the same tax rate is used for all income levels.

Answer

means everyone pays the same amount of tax.

Answer

is really the sane as a progressive tax.

Answer

is used to determine your federal income tax.

Question 33

Gross income on a tax return includes which of the following?

Accepted Answer

Wages

Answer

Tax credits

Answer

Itemized deductions

Answer

All of the above

Financial Literacy Midterm

37 questions

Last month, Jorge was paid a total of $9,000, which included a bonus of $1,500. What is Jorge's gross bimonthly pay during a month when a bonus is not paid?

A greater withholding allowance results in ________________.

Jeffery worked 48 hours this week. His regular hourly wage is $18.50. For every hour each week he works over 40, he is paid 1.5 times his regular hourly wage. What is Jeffery's gross pay for this week?

If taxes due are greater than the taxes withheld, then _____________________.

Leona is a real estate agent who earns straight commission based on the homes that she sells. Last month, she sold four homes with sales prices of $144,000, $177,000, $152,000, $193,000. She earned a 3% commission on each sale. What was Leona's total commission?

Bartering is trading one thing of value for another.

Workers who are paid a salary are paid by the hour.

Social security taxes pay for retirement and disability benefits.

A federal income tax return is used to calculate taxes owed to the federal government.

Unearned income is the money a person gets from doing a job.

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