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Financial Literacy Review

Total questions: 20

Worksheet time: 29mins

Name
Class
Date
1.

Amanda has to pay taxes on her annual salary and investments. Which type of tax is Kimberly paying?

a)

Sales Tax

b)

Property Tax

c)

Payroll Tax

d)

Income Tax

2.

Which of the following is an advantage of using a credit card?

a)

Interest is charged for the use of a credit card.

b)

Consumers can purchase things now, and pay for them later in the event of an emergency.

c)

You could be a victim of identity theft.

d)

It is used just like a check.

3.
Alyssa has her first job at the local bakery. After working for one week, she received her first paycheck. The total amount of money she is able to put in the bank is $75.62. What type of income does this amount describe?
a)
Gross Income
b)
Net Income
c)
Both Gross and Net Income
d)
None of the above
4.
Jonathan's new clothes cost a total of $572.50 before tax. What type of tax does Jonathan have to pay for his new clothes?
a)
Income Tax
b)
Property Tax
c)
Payroll Tax
d)
Sales Tax
5.
Amarise's salary has a net income of $235 per week. If she pays $30 in income tax and $15 in payroll tax, how could Juliette determine her gross income? Why?
a)
235 – 30 – 15 = $190 Net income minus all deductions equals gross income.
b)
235 + 15 = $250 Net income plus payroll tax deductions equals gross income.
c)
235 + 30 = $265 Net income plus income tax deductions equals gross income.
d)
235 + 30 + 15 = $280 Net income plus all deductions equals gross income.
6.
Which of the following is considered an advantage to using a debit card to make purchases?
a)
Debit cards are convenient and easy to carry around.
b)
Purchases can be made quickly and easily.
c)
You can use many ATMs to get cash.
d)
All of the above.
7.

Credit card purchase:

a)

Pay now?

b)

Pay later?

8.

Debit card purchase:

a)

Pay now?

b)

Pay later?

9.

A paper transaction giving a bank permission to transfer payment from your account to another account is known as a/an _________________________.

a)

Check

b)

Debit Card

c)

Credit Card

d)

Electronic Transfer

10.

What is the difference between gross income and net income?

a)

Gross income is income after deductions, while net income is income before deductions.

b)

Gross income is income taken home, while net income is what you actually get paid.

c)

Gross income is money earned BEFORE deductions, while net income is money earned AFTER deductions.

d)

Gross and net income are both the same thing but with different names.

11.

Ashley wants to use money from her checking account to make a purchase. Which payment method should she use?

a)

credit card

b)

debit card

c)

check

d)

Both a debit card or a check.

12.

______ is withheld from a paycheck and is used to fund government services such as health care, national defense, and scientific programs.

a)

Income tax

b)

Sales Tax

c)

Property Tax

d)

Payroll Tax

13.

Martina’s checks for last month are shown in this table. At the end of the month, Martina was $15 overdrawn at the bank. Which action would BEST help Martina avoid being overdrawn again next month?

a)

Do not give the car payment and take public transportation instead.

b)

Buy more expensive gift for her friends.

c)

Do not pay for insurance until next month.

d)

Reduce the amount of sodas she purchases.

14.

Arturo has an opportunity to buy a video game from his friend for $18. How can Arturo BEST adjust his budget so that he can afford the game?

a)

Do not buy gum and trading cards.

b)

Do not buy lunch at school.

c)

Do not buy movie tickets and gum.

d)

Do not buy popcorn at the movies.

15.

Mauricio bought a house and a ranch. He has to pay taxes on these. What kind of tax does he have to pay?

a)

Payroll Tax

b)

Sales Tax

c)

Income Tax

d)

Property Tax

16.
Jenny just received her first paycheck. She noticed that after they deducted $30 for payroll taxes and $60 for medical insurance. Her net pay was $320. How much did Jenny make before the deductions were removed from her gross pay?
a)
$230
b)
$410
c)
$320
d)
$140
17.

The total tax an employer withholds is called ____________.

a)

Sales Tax

b)

Income Tax

c)

Payroll Tax

d)

Property Tax

18.
Which method of payment may you have to pay interest?
a)
Cash
b)
Check
c)
Debit Card
d)
Credit Card
19.
On the 25th of every month, Tammy pays her rent by writing the amount on a small official preprinted note that contains information about a checking account. She puts this note in an envelope and drops it off at the post office. 
a)
Cash
b)
Debit Card
c)
Credit Card 
d)
Check
20.
Emma goes to the store to buy groceries. To pay for the groceries, she slides her card through a card reader and enters a special code.
a)
Cash
b)
Debit Card
c)
Credit Card 
d)
Check