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WISE Review: Money

Total questions: 12

Worksheet time: 12mins

Name
Class
Date
1.

Samuel and Mia are discussing what gives U.S. money its value. What is the reason?

a)

Backing by gold

b)

Full faith and confidence in the U.S. government

c)

Backing by silver

d)

Backing by foreign currency reserves

2.

Which department is responsible for collecting federal taxes in the U.S.?

a)

Department of Commerce

b)

Department of Defense

c)

Department of the Treasury

d)

Department of Education

3.

Aiden received a large sum of money unexpectedly. Which of the following is considered windfall income?

a)

Salary from employment

b)

Interest income

c)

Lottery winnings

d)

Rental income

4.

What is a factor that influences income?

a)

Weather conditions

b)

Level of education

c)

Type of car owned

d)

Favorite color

5.

Emma recently started a side business and is wondering what she needs to report to the government for tax purposes. What should she include?

a)

Personal hobbies

b)

Wages, rental income, interest, dividends, lottery, gambling

c)

Grocery expenses

d)

Travel plans

6.

Emma just started her first job and is reviewing her paycheck. What is a mandatory payroll deduction she will see?

a)

Gym membership fees

b)

Social Security (FICA) and Medicare

c)

Magazine subscriptions

d)

Vacation savings

7.

David is reviewing his paycheck and notices several deductions. What are some examples of optional deductions from his gross pay?

a)

Automatic savings, 401(k) contributions, life insurance

b)

Health insurance, vacation pay, sick days

c)

Tuition reimbursement, pension contributions, health insurance

d)

Payday loans, business records, entrepreneurship

8.

Why is it important to know the value of benefits provided by an employer when accepting a job?

a)

To understand the company's profit margins

b)

To evaluate vacation, sick days, and health insurance

c)

To determine the company's stock value

d)

To assess the company's market position

9.

Grace is considering taking out a payday loan to cover unexpected expenses. What is a disadvantage of payday loans?

a)

They are interest-free

b)

They are expensive and prohibited in at least 14 states

c)

They are easy to obtain and have no restrictions

d)

They offer long-term financial solutions

10.

Liam is considering whether to become self-employed or to work as an employee. What is a key difference he should consider?

a)

Self-employed individuals have fixed salaries

b)

Employees have more flexible work hours

c)

Self-employed individuals manage their own business

d)

Employees do not receive any benefits

11.

Kai is considering different ways to save for the future. What is a common reason for individuals like Kai to invest in a 401(k) plan?

a)

To save for retirement with potential employer matching

b)

To fund short-term expenses

c)

To avoid paying any taxes

d)

To increase immediate disposable income

12.

Michael is planning to buy a new car and needs a loan from the bank. What is the primary purpose of a credit score in this scenario?

a)

To calculate annual tax returns

b)

To evaluate job performance

c)

To assess an individual's creditworthiness

d)

To determine eligibility for government benefits