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Chapter 2 - Review Your Knowledge

Total questions: 12

Worksheet time: 24mins

Name
Class
Date
1.

What is gross pay?

a)

The amount paid for working time in a week beyond the standard 40-hour workweek.

b)

The total amount of earnings minus payroll deductions.

c)

The total amount of earnings.

d)

A dollar amount paid per hour worked.

2.

Which of the following is an example of a mandatory deduction?

a)

state income tax

b)

insurance premiums

c)

charitable contributions

d)

retirement contributions

3.

What is Social Security?

a)

Behaving with sensitivity to social, environmental, and economic issues.

b)

A federal program that pays for certain healthcare expenses for older citizens and those with disabilities.

c)

Income provided by the US government for working time in a week that is beyond the standard 40-hour workweek.

d)

A social insurance program operated by the US government that provides income for individuals whose earnings are reduced or stopped because of retirement, disability, or death.

4.

Which of the following is an example of a voluntary deduction?

a)

local income tax

b)

state income tax

c)

FICA taxes

d)

insurance premiums

5.

What is financial literacy?

a)

A set of goals for acquiring, saving, and spending money.

b)

The ability to understand basic topics related to finance, such as making, spending, and saving money.

c)

A plentiful supply of money or valuable goods.

d)

Having enough money for your basic needs and modest wants without work being a necessity.

6.

Planning to save enough money to go on a nice vacation is an example of a(n) _____

a)

need

b)

investment

c)

financial goal

d)

wealth

7.

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

a)

I want to buy a house in ten years.

b)

I want to save as much money as possible.

c)

I want to buy a guitar in six months.

d)

I want to retire at 50.

8.

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

a)

I want to spend next week’s allowance at the mall.

b)

I want to save as much money as possible.

c)

I want to buy a guitar in six months.

d)

I want to save $4,000 before starting college in two years.

9.

Which of the following is a regular need for people?

a)

Shelter

b)

Designer Clothes

c)

Television

d)

Sports Car

10.

What is a want?

a)

Something essential for living.

b)

An expense.

c)

Something important to an individual.

d)

Something someone would like to have but does not need to live.

11.

A _____ is a value or goal that is given more importance than other values or goals.

a)

short-term goal

b)

long-term goal

c)

priority

d)

trade-off

12.

What is wealth?

a)

The difference between what is owned and what is owed.

b)

A plentiful supply of money or valuable goods.

c)

The value of the option you give up when you make one choice over another.

d)

When a certain value or goal is given more importance than other values or goals.