WISE Review: Money

Samuel and Mia are discussing what gives U.S. money its value. What is the reason?

• Backing by gold

• Full faith and confidence in the U.S. government

• Backing by silver

• Backing by foreign currency reserves

Which department is responsible for collecting federal taxes in the U.S.?

• Department of Commerce

• Department of Defense

• Department of the Treasury

• Department of Education

Aiden received a large sum of money unexpectedly. Which of the following is considered windfall income?

• Salary from employment

• Interest income

• Lottery winnings

• Rental income

What is a factor that influences income?

• Weather conditions

• Level of education

• Type of car owned

• Favorite color

Emma recently started a side business and is wondering what she needs to report to the government for tax purposes. What should she include?

• Personal hobbies

• Wages, rental income, interest, dividends, lottery, gambling

• Grocery expenses

• Travel plans

Emma just started her first job and is reviewing her paycheck. What is a mandatory payroll deduction she will see?

• Gym membership fees

• Social Security (FICA) and Medicare

• Magazine subscriptions

• Vacation savings

David is reviewing his paycheck and notices several deductions. What are some examples of optional deductions from his gross pay?

• Automatic savings, 401(k) contributions, life insurance

• Health insurance, vacation pay, sick days

• Tuition reimbursement, pension contributions, health insurance

• Payday loans, business records, entrepreneurship

Why is it important to know the value of benefits provided by an employer when accepting a job?

• To understand the company's profit margins

• To evaluate vacation, sick days, and health insurance

• To determine the company's stock value

• To assess the company's market position

Grace is considering taking out a payday loan to cover unexpected expenses. What is a disadvantage of payday loans?

• They are interest-free

• They are expensive and prohibited in at least 14 states

• They are easy to obtain and have no restrictions

• They offer long-term financial solutions

Liam is considering whether to become self-employed or to work as an employee. What is a key difference he should consider?

• Self-employed individuals have fixed salaries

• Employees have more flexible work hours

• Self-employed individuals manage their own business

• Employees do not receive any benefits