Money Management

1. What is gross pay?

• The total amount earned after deductions

• The amount deposited into your bank account.
  
  

• The total amount earned before any deductions.
  
  

• The amount allocated for discretionary spending.
  
  

What type of deductions are required by law?

• Charitable donations.
  
  

• Retirement contributions. bank account.
  
  

• Social Security and Medicare taxes.
  
  

• Health insurance premiums.
  
  

What is net pay?

• The total earnings before deductions.

• The remaining income after all deductions are subtracted.
  
  

• he total amount withheld for taxes.

• The amount paid for optional benefits.

Which expense is considered a fixed cost?

• Dining out with friends.

• Monthly rent payment.

• Buying a birthday gift.

• Going to a concert.
  
  

How should the amount be written on the "Amount in Words" line of a check?

• In abbreviated text.

• Using full words and fractions (e.g., "One Hundred Twenty-Five and 00/100").

• Using only numbers.

• Written in all lowercase letters.

What is the purpose of the memo line on a check?

• To authorize the payment

• To provide the bank with additional information.
  
  

• To note the purpose of the payment.

• To note the purpose of the payment.

Which budgeting category is recommended to allocate at least 20% of your income?

• Rent.

• Groceries.

• Savings.

• Entertainment.