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Unit 2- Career Prep B

Total questions: 36

Worksheet time: 24mins

Name
Class
Date
1.

The ____ is the form employers use to inform you of the amount of money deducted from your paycheck in a given year.

a)

W4

b)

I9

c)

W2

d)

W9

2.

The form employers use to determine how much tax to deduct from your paycheck is _____.

a)

W2

b)

W4

c)

I9

d)

W9

3.

The total money earned in your paycheck before taxes and deductions is _____.

a)

gross pay

b)

net pay

c)

federal income tax

d)

state income tax

4.

If Maddy’s gross pay is $500 this pay period and the Social Security tax is 6.2%, how much Social Security tax will be deducted from Maddy’s paycheck?

a)

$310.00

b)

$7.25

c)

$72.50

d)

$31.00

5.

If Lanten’s gross pay is $1,800 this pay period and the Medicare tax is 1.45%, how much Medicare tax will be deducted from Lanten’s paycheck?

a)

$26.10

b)

$261.00

c)

$2.61

d)

$111.60

6.

According to financial experts, what portion of your income should be devoted to needs?

a)

20%

b)

30%

c)

40%

d)

50%

7.

According to financial experts, what portion of your income should be saved?

a)

20%

b)

30%

c)

40%

d)

50%

8.

Which of the following is an example of a short-term goal?

a)

Katie wants to save for college

b)

Katie wants to save $100 for a trip this summer

c)

Katie wants to save to buy a house

d)

Katie wants to plan for her retirement

9.

The following statement is a SMART goal: “I want to make all As.”

a)

True

b)

False

10.

The T in SMART goals refers to making goals that are

a)

TImely

b)

Taxes

c)

Thorough

d)

Third

11.

The S in SMART goals refers to making goals that are

a)

School

b)

Short Term

c)

Sharp

d)

Specific

12.

Which of the following is an example of a long-term goal?

a)

Emery wants to plan for his retirement.

b)

Emery wants to save for a car when he turns 16.

c)

Emery wants to open a savings account.

d)

Emery wants to save $100 for a trip this summer

13.

The A in SMART goals refers to making goals that are

a)

additional

b)

all

c)

attainable

d)

astute

14.

The first step to financial success is creating and sticking to a budget.

a)

True

b)

False

15.

The M in SMART goals refers to making goals that are

a)

medium-term

b)

measurable

c)

mighty

d)

marvelous

16.

The following statement is a SMART Goal: "I want to be able to attend college."

a)

True

b)

False

17.

The R in SMART goals refers to

a)

responsible

b)

resourceful

c)

relevant

d)

redundant

18.

Anita’s power bill was $75 in September and $88 in October. A power bill is an example of a…

a)

periodic expense

b)

fixed expense

c)

variable expense

d)

want

19.

A mortgage payment is an example of a ________

a)

fixed expense

b)

variable expense

c)

periodic expense

d)

want

20.

A budget deficit occurs when

a)

inflows are greater than outflows

b)

inflows are equal to outflows

c)

inflows are less than outflows

d)

inflows are equal to income

21.

If you discover that you have a budget deficit, how should you fix the problem?

a)

increase inflows

b)

increase inflows and decrease outflows

c)

decrease outflows

d)

it's not really a big problem. maybe it will fix itself.

22.

According to financial experts, what portion of your income should be devoted to wants?

a)

20%

b)

30%

c)

40%

d)

50%

23.

Clothing is usually considered a want.

a)

True

b)

False

24.

Which of the following is not usually considered a need?

a)

clothing

b)

mortgage

c)

grocderies

d)

gasoline

25.

Which of the following is not usually considered a want?

a)

entertainment

b)

cable TV

c)

a car payment

d)

rent

26.

Which of the following is considered passive income?

a)

your paycheck

b)

profit from selling a house

c)

profit from selling a stock

d)

rent received from a rental property

27.

Money earned from working is

a)

passive income

b)

earned income

c)

portfolio income

d)

working income

28.

Money earned from the sale of investments is known as

a)

passive income

b)

earned income

c)

working income

d)

portfolio income

29.

Zara goes to the mall with her friends, who all buy new shoes. Zara hadn’t planned to buy new shoes that today, but she bought shoes just like her friends. This is an example of

a)

peer pressure

b)

family dynamics

c)

personal preference

d)

effective marketing

30.

Store brands are often made in the same factory as name brands.

a)

True

b)

False

31.

Generally speaking the ___________ quality, the ___________ the price.

a)

higher; higher

b)

higher; lower

c)

lower; higher

d)

there is no relationship between price and quality

32.

You and a friend go to eat at a sit-down style restaurant. At the end of the meal, your server presents you the bill for $15.00. What is an appropriate tip for your server?

a)

15% ($2.25)

b)

5% ($.75)

c)

10% ($1.50)

d)

30% ($4.50)

33.

In a budget, a(n) ____ is anything you owe.

a)

liability

b)

asset

c)

net worth

d)

budget

34.

A(n) ____ is anything of value that you own.

a)

asset

b)

liability

c)

net worth

d)

budget

35.

Darion’s assets total $50,000 and his liabilities total $40,000. What is his net worth?

a)

$10,000

b)

$90,000

c)

80%

d)

20%

36.

Dawn has a retirement account. Which of the following best describes this account?

a)

asset

b)

liability

c)

net worth

d)

budget