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Financial Literacy

Total questions: 24

Worksheet time: 42mins

Name
Class
Date
1.

A deduction is

a)

gross income

b)

money added to your income

c)

net income

d)

money taken out of your income

2.
Taxes are - 
a)
Money given to you by the government
b)
Free money to you
c)
Money you must pay to the government
d)
Money in someone's piggy bank
3.

Net income is:

a)

the total amount of money you earn

b)

the amount of money you receive after deductions are subtracted from your gross income

c)

the amount of money that is taken away in the form of taxes

d)

the hourly rate of pay

4.

Gross income is:

a)

the total amount of money you earn

b)

the amount of money you receive after decuctions are subtracted

c)

the total amount of money you spend

d)

sales taxes on items you buy

5.

Which of these is NOT an example of property tax?

a)

Tax paid on the value of a farm a person owns

b)

Tax paid on the value of a piece of land a person owns

c)

Tax paid on the value of a piece of furniture a person owns

d)

Tax paid on the value of a home a person owns

6.
a)

Income Tax

b)

Sales Tax

c)

Payroll Tax

d)

Property Tax

7.

Nick delivers pizza for extra money while he finishes high school. He earns about $60 on a typical night. What kind of tax will Nick have to pay on what he earns delivering pizzas?

a)

Income Tax

b)

Sales Tax

c)

Payroll Tax

d)

Property Tax

8.
Sally owns a gas station.  What type of tax will she have to pay on the land that the gas station is on? 
a)
Property Tax
b)
Payroll Tax
c)
Income Tax
d)
Sales tax
9.

Cheyenne works 15 hours a week at the movie theater. She earns $8 an hour. Which statement about her weekly income is true? Hint: $15 x 8 = $120

a)

Her net income is more than $120.

b)

Her gross income is less than $120.

c)

Her net income is less than $120.

d)

Her gross income is more than $120.

10.
a)

Income Tax

b)

Sales Tax

c)

Payroll Tax

d)

Property Tax

11.

David's gross income: $127.25

David's deductions: $25.20

David's net pay: ?

a)

$102.05

b)

$102.45

c)

$112.05

d)

$152.45

12.

Wanda's net income for the month of April was $2,438. The table shows her April budget except for an amount in the "Other" category. What amount, in dollars and cents, should be in the "Other" category in order for Wanda's April budget to be balanced?

(a)  

13.

Yvonne's gross income: ?

Yvonne's deductions: $251.18

Yvonne's net income:$451.82

a)

$703

b)

$200.64

c)

$954.18

d)

$25,812.00

14.

Rohan's father is an architect and is paid by his clients for the blueprints he draws for them. When he added the money from all the clients, he figured that he made $54,000 last year. What is the name of the tax that Rohan's father will pay on his earnings?

a)

Income Tax

b)

Payroll Tax

c)

Property Tax

d)

Sales Tax

15.

So far this month Nancy has the recorded the expenses and income shown in the chart. Nancy wants to buy some music online but also has a balanced budget. Based on Nancy's current budget, what is the greatest amount of money she can spend on music?

a)

$10

b)

$35

c)

$140

d)

$5

16.

Leroy's planned expenses go ABOVE his income. He earned $3,410 last month. Which action would BEST help Leroy balance his budget?

a)

Do not go to the movies

b)

Do not pay the electric bill.

c)

Do not pay the monthly rent.

d)

Do not buy groceries.

17.

What are some items that people usually owe money for and go into debt?

a)

Big purchases like furniture and cars

b)

Candy from the gas station.

c)

Pencils.

d)

Washing detergent.

18.

What is investing in a car by creating a fund to save money to purchase when you get your license a wise or unwise investment?

a)
  • wise

b)

unwise

19.

A payment from banks or the use of (customers') money.

a)

spending

b)

interest

c)

wealth

d)

checking

20.

A person who has a car can AVOID having the car repossessed by

a)

Having the car serviced

b)

Driving carefully until loan is repaid

c)

Taking a driver's education course

d)

Making payments in full by the due date

21.

If a person has a credit score of 780, he/she is more likely to

a)

Be charged a lower interest rate for a loan

b)

Be charged no interest for a loan

c)

Need to have at least 2 credit cards to get a loan

d)

Need proof of home ownership to get a loan

22.

The cost of borrowing money is commonly referred to as the

a)

Rate of inflation

b)

Interest rate

c)

Time value of money

d)

Introductory rate

23.

A recent high school graduate was denied $5,000 car loan. The graduate has a better chance of being approved for a loan by:

a)

applying for a loan from the Federal Deposit Insurance Corporation (FDIC)

b)

applying for a loan from the Securities and Exchange Commission (SEC)

c)

having a person with a good credit score cosign for the loan

d)

requesting a larger loan than is actually needed

24.

Which of the following is an example of a typical deduction taken out of your gross pay?

a)

state and federal income taxes

b)

social security tax

c)

health insurance premium

d)

all of the above