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WorksheetsW!SE Review: Money
Total questions: 63
Worksheet time: 49mins
What is earned income?
Income from investments
Income from active participation in a trade or business
Income from a savings account
Income from dividends
Which of the following is an example of unearned income?
Salary
Tips
Bond interest
Commissions
What is a personal tax exemption?
A deduction that increases your taxable income
A credit that reduces your tax liability
An exemption that reduces your taxable income
A penalty for not filing taxes
Under what condition can you claim a personal tax exemption?
If you are claimed as a dependent on another taxpayer's return
If you are not claimed as a dependent on another taxpayer's return
If you are under 19 years old
If you provide more than half of your own financial support
Which of the following is an example of a liquid asset?
Real estate
Cash
Artwork
Antique furniture
What is a gift card primarily used as an alternative to?
A monetary gift
A non-monetary gift
A bank account
A credit card
Which of the following is NOT exempt from the gift card regulations?
Prepaid phone cards
Reloadable cards
Gift certificates issued in paper form
Gift cards with no exclusions
Who usually issues money orders?
Private individuals
Governments and banking institutions
Retail stores
Online marketplaces
What is the definition of opportunity cost?
The total cost of all alternatives
The value of the best alternative given up
The cost of the chosen option
The sum of all possible choices
Which of the following best describes opportunity cost?
The first choice you make
The second best choice you did not buy
The total expenditure on all options
The least expensive option available
What does the Consumer Price Index (CPI) measure?
Inflation in the stock market
Inflation in consumer goods
Inflation in real estate prices
Inflation in gas and coffee prices
Who are hurt the most by inflation?
Borrowers
Producers
Those on fixed incomes
Investors
Who are hurt the least by inflation?
Retired people
Borrowers and producers
Fixed income earners
Savers
If banks lend money at a fixed nominal interest rate of 5%, and inflation unexpectedly increases from 2% to 4%, what happens to the borrowers' real interest rate?
It increases from 3% to 5%
It remains at 3%
It is reduced from 3% to 1%
It becomes negative
What is the primary responsibility of the United States Department of the Treasury?
Managing the military
Issuing Treasury bonds, notes, and bills
Overseeing education policies
Regulating healthcare
Which agency is responsible for the collection of taxes and enforcement of tax laws?
FBI
CIA
IRS
EPA
What does the Treasury Department oversee in relation to U.S. banks?
Setting interest rates
Overseeing U.S. banks
Providing loans to small businesses
Regulating stock markets
How does the Treasury Department contribute to national security?
By managing military operations
By identifying and targeting the financial support networks of national security threats
By conducting international peace talks
By regulating immigration policies
When do you start paying income taxes?
When you turn 18
When you make more than the minimum income requirement
When you are notified by the IRS that you are required to pay federal income taxes
When determining whether you NEED to file a federal tax return, each of these questions matters EXCEPT...
What type of income did you earn this year?
What state do you live in?
Are you claimed as a dependent on anyone else's tax return?
Elaine just accepted a new job and is working with the company's HR department to fill out paperwork. Which of the following steps is she responsible for?
Determine how much tax to withhold from her paychecks based on W-4 information
Complete a W-4 form
Send withholding amounts to the federal government
Complete a W-2 form
Your friend Laila is talking to you about the benefits of tax filing websites. Which of the following is true?
Filing your taxes using a website is always free of charge
You are guaranteed a higher refund than if you were to use a paper form or hire a professional
If you owe money to the IRS, you receive a discount if you e-file use a tax filing website
You can avoid the costs of having to pay a professional, though you may have to pay for e-filing online
Which of the following describes what a "dependent" is for tax purposes?
A child or adult that you support financially
Someone who is temporarily disabled
An adult who financially supports you
Someone who is a full-time student under the age of 30
If a taxpayer fills out their W-4 in a way that does not withhold enough money to cover their tax obligation, what is the most likely outcome after they file their taxes?
They will receive a refund
They will owe a payment to the IRS
They will be audited
They will be charged with tax evasion
Which of the following statements about the W-2 form is TRUE?
A W-2 lists all the money you earned in cash over the last year
The total wages you earned from ALL jobs you worked in the previous year appear on ONE W-2 form
You need a separate W-2 form from EACH of your employers in order to file your taxes
The W-2 includes information about the interest you earned from your investments
Net pay is ...
income before deductions
income after deductions
income you take home
income with holdings
This form will be sent to Lily by the end of January. She will use this W-2 form to…
Obtain employment
Receive her paycheck
File her income taxes
Begin her retirement savings
When Maxwell completes this W-4, who should he submit it to?
Big City Office Furniture
The IRS
No one - he keeps it for his records
His spouse
Taxes are collected by
Businesses
Parents
Foreign countries
Government
IRS stands for
Internal Revenge Service
International Revenue System
Internal Revenue Service
Inspection Ravioli Sauce
The official date for when taxes are due
January 15
February 15
March 15
April 15
When you receive a new job, you are mandated to file a
Complaint
Divorce
W-4
W-2
When you are ready to file for taxes you must have form
W-2
W-6
WD40
W-2484
A fixed amount all people are allowed to deduct from their adjusted gross income to reduce their tax liability
Standard Deduction
Itemized Deduction
Wages, salary and tips
unearned income
earned income
disposable income
Income that has not been worked for such as interest, dividends, or gambling winnings
disposable income
unearned income
earned income
workers compensation
Jay filed his taxes and found out he owes money. What is the most reasonable explanation as to why he owes money in taxes?
Not enough money was withheld from his paychecks.
Too much money was withheld from his paychecks.
When filing his taxes, Jay accidentally checked “Married filing jointly” instead of “Single”.
The IRS is asking Jay for a future advance on his possible taxes for next year.
If you are a borrower, which statement is true?
You will pay additional money on your loan called interest.
A lower interest rate is worse for you.
Your interest rate is determined on your negotiating skills.
Having a lower credit score gets you a lower interest rate.
What is the amount of money you borrowed called?
The greater your interest rate is, the (a) you'll pay in interest.
If you are a higher risk for repaying your loan, will you have a higher or lower interest rate?
Imagine you are the head of a bank and you have two friends, Bob and Alice, applying for loans. Who would you offer a better interest rate to?
Bob, who has a credit score of 650.
Alice, who boasts a credit score of 720.
They both get the same rate, regardless of their credit scores.
Aria has been working at the same tech company for ten years, while Liam changes his tech jobs every six months. Their financial situations are otherwise the same. If you were a bank manager, who would you approve a home loan for?
Aria
Liam
Neither
Emma
A document that comes with your paycheck, showing how much you were paid and how much was withheld for taxes.
budget
transfer
pay stub
net pay
The form you fill out when you get a job to verify you can work is a
W4
I-9
What calculation should you do to answer the question:
How many years will it take $900 to double if the interest rate is 2%?
72 divided by 2
900 divided by 2
2 divided by 100 times 900
A quick way to estimate how long it takes for your money to double is called...
rule of 72
compound interest
simple interest
inflation
What is the rule of 72?
The rule of 72 is a formula used to estimate the time it takes for an investment to triple in value.
The rule of 72 is a formula used to estimate the time it takes for an investment to halve in value.
The rule of 72 is a formula used to estimate the time it takes for an investment to quadruple in value.
The rule of 72 is a formula used to estimate the time it takes for an investment to double in value.
If we did not have money, we would have to _____, or trade for something of equal worth.
barter
currency
debt
Coins and paper bills make up the _____ of the United States.
barter
currency
debt
_____ accept deposits from depositors and lend money to businesses and consumers.
Financial institutions
Federal Reserve System
District banks
The _____ is the central bank of the United States.
Financial institutions
Federal Reserve System
District Banks
_____ is the changing of the money supply to create economic growth.
Monetary policy
Fiscal year
Money deposited in a _____ can be withdrawn at any time by check or debit card.
savings account
certificate of deposit
money market account
checking account
_____ spending is spending required by laws outside the budget process.
Mandatory
Discretionary
_____ spending is based on choices made and approved each year.
Mandatory
Discretionary
Budget deficits cause the government to borrow money, which adds to government _____.
barter
currency
debt
The Federal Reserve regulates and monitors ____.
banks
businesses
government agencies
consumers
