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Basics of Banking

Total questions: 11

Worksheet time: 6mins

Name
Class
Date
1.

Pay periods can be weekly, bi-weekly, twice a month (like the 15th and 30th of every month), or monthly

a)

True

b)

False

2.

Tax withheld from your paycheck that goes to pay for the US Interstate Highways, US armed forces, and Congress salaries

a)

Federal Tax

b)

State Tax

c)

Social Security Tax

d)

Medicare

3.

Tax withheld from your paycheck that goes to pay for local bridges, roads, parks, police salaries, and teacher salaries

a)

Federal Tax

b)

State Tax

c)

Social Security Tax

d)

Medicare

4.

Tax withheld from your paycheck that goes to pay for medical insurance for retired American citizens

a)

Federal Tax

b)

State Tax

c)

Social Security Tax

d)

Medicare

5.

Amount of money you earn before withholdings

a)

Pay period

b)

Net pay

c)

Gross pay

d)

Allowances

6.

Amount of money deposited into your bank account after withholdings and deductions. Also known as "take home pay"

a)

Pay period

b)

Net pay

c)

Gross pay

d)

Allowances

7.

Financial literacy means having the skills and knowledge to make effective and informed decisions when you... (select all that apply)

a)

Spend

b)

Donate

c)

Depreciate

d)

Invest

e)

Save

8.

Becoming financially literate is only important to professional athletes

a)

True

b)

False

9.

Why are professional athletes filing for bankruptcy? (select all that apply)

a)

poor investment choices

b)

identity theft

c)

overspending

d)

they just don't understand their finances

e)

no worker's compensation for in-game injuries

10.

Whether you open a savings account or sign up for a credit card, you always want to make sure the interest rates for both are high. The higher, the better

a)

True

b)

False

11.

How do banks earn their money?

a)

high initial bank account opening fees

b)

allocating customers' money for daily expenses and company's money for quarterly bills

c)

lending money at higher interest rates than what they are paying out for savings accounts

d)

circulating printed money into the economy and keeping a percentage for daily operations