Financial Literacy Test Review

The total money one gets to “take home” from a paycheck after taxes and deductions are taken out is known as:

The following is the form employers use to determine how much tax to deduct from a paycheck:

• W-2

• W-4

• 1099

• W-3

The following is the form an employer provides to an employee to inform them of how much money was deducted from paychecks in a given year:

Describe gross pay:

Answer explanation

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

The following will be paid for as part of the escrow funds included in a mortgage loan: - Property tax

• Property tax

• Homeowner's insurance

• Mortgage insurance

• Utilities

When seeking to open a bank account, what is needed:

Answer explanation

Government-issued identification

When one is seeking to purchase a product at a store, what additional cost must be paid in addition to the listed price of the product?

The following best describes the concept of APR:

Answer explanation

The credit card interest rate, calculated on a yearly basis

A certificate of deposit (CD) differs from a traditional savings account in what way?

Answer explanation

CDs must remain untouched for a fixed period of time

The following is not an advantage of bundling insurance:

Answer explanation

Increases insurance options