WISE Review: Vocab

Which term refers to the total amount of money earned before any deductions?

• Net pay

• Gross wages

• Tax refund

• Payroll deductions

What is the name of the agency responsible for collecting federal taxes in the United States?

• IRS (Internal Revenue Service)

• United States Treasury Dept.

• Federal Reserve

• Social Security Administration

Which term describes the additional benefits provided to employees beyond their regular salary?

• Fringe benefits

• Garnishment

• Inheritance

• Rental income

What is the term for the process of transferring money electronically from one bank account to another?

• Money order

• Electronic transfer

• Paycheck

• Store cash card

Which term refers to the money returned to a taxpayer when they have paid more taxes than owed?

• Tax refund

• Income tax deductions

• State taxes

• Local taxes

What is the term for the amount of money a person receives after all taxes and deductions have been taken out?

• Net pay

• Disposable income

• Gross income

• Taxable income

Which term describes the process of automatically saving a portion of your paycheck into a savings account?

• Payroll deduction

• Automatic transfer

• Direct deposit

• Budgeting

What is the term for a financial plan that helps individuals manage their income, expenses, and savings?

• Investment strategy

• Tax plan

• Budget

• Credit report

What is the term for a financial product that provides income during retirement?

• Health savings account

• Roth IRA

• 401(k)

• Pension plan

Which term refers to the practice of spreading investments across various financial instruments to reduce risk?

• Capital gains

• Diversification

• Risk management

• Asset allocation