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Midterm Vocab Review

Total questions: 27

Worksheet time: 14mins

Name
Class
Date
1.

Which best describes gross wages?

a)

Income before any payroll deductions

b)

Money paid for each hour of work

c)

Income after payroll deductions are taken

2.

Net income is the amount of money you receive when which condition is true?

a)

Only if paid a yearly salary

b)

After payroll deductions are subtracted

c)

When direct deposit is not used

3.

Direct deposit means

a)

A prepaid card loaded by your employer

b)

An automatic deposit of your paycheck

c)

Cash picked up at the bank window

4.

Which statement defines hourly rate?

a)

Yearly amount paid as a salary

b)

Money collected by the federal government

c)

Fixed amount paid for each hour worked

5.

Which option correctly defines salary?

a)

Fixed yearly pay broken into paychecks

b)

Money before deductions from wages

c)

Fixed amount paid per hour worked

6.

Payroll deductions are

a)

Bonuses for working overtime

b)

Amounts subtracted from gross pay

c)

Interest charged by the bank

7.

Which taxes are collected by the federal government to fund programs for retirement and disability?

a)

LST Local Tax

b)

PA State Tax

c)

Social Security Tax

8.

Medicare Tax is collected to provide what?

a)

Extra pay for salaried employees

b)

Local road and park services

c)

Health insurance benefits in retirement

9.

Which items are examples of payroll deductions that reduce gross pay to net pay? Select all that apply.

a)

PA State Tax

b)

Social Security Tax

c)

Health Insurance premiums

d)

Federal Tax

10.

A student earns money at a job and wants to estimate take-home pay. Which plan uses correct reasoning?

a)

Start with gross wages, subtract deductions

b)

Deposit a paper check to avoid deductions

c)

Add salary and hourly rate together

11.

Which term means the amount of money currently in your bank account?

a)

Withdrawal

b)

Deposit

c)

Balance

12.

What does an ATM allow you to do? Select all that apply.

a)

Deposit money into your account

b)

Withdraw cash from your account

c)

Check your account balance

13.

Which action will make your account balance go up?

a)

Deposit

b)

Withdrawal

c)

ATM fee

14.

Which tool do you use to record your checking account transactions over time?

a)

Debit card

b)

Ledger

c)

PIN

15.

What is a PIN number used for?

a)

A password of digits to access your account at an ATM

b)

A fee charged by a non‑bank ATM

c)

A written contract between you and a bank

16.

Which is the best description of a checking account?

a)

Bank account for deposits, withdrawals, and checks

b)

Savings plan that only earns interest

c)

Loan that lets you borrow for purchases

17.

When you endorse a check, what are you doing?

a)

Recording the check in your ledger

b)

Signing to verify you agree to the transaction

c)

Writing the amount you want to withdraw

18.

Which option explains a debit card?

a)

Card that pays directly from checking at purchase

b)

Card that can write paper checks automatically

c)

Card that borrows money and adds interest later

19.

Which situation would cause a check to bounce?

a)

Depositing cash at an ATM after hours

b)

Endorsing the check before handing it over

c)

Writing a check for more than your balance

20.

A store purchase using your debit card reduces your balance right away. Which step helps you manage this correctly?

a)

Keep your PIN private at checkout

b)

Wait to record until the monthly statement

c)

Enter the purchase in your ledger

21.

Which term means a bank charge when you take out more money than your account has?

a)

Overdraft fee

b)

Direct deposit

c)

Principal amount

22.

What is the original amount of money you borrow called?

a)

Interest rate

b)

Principal

c)

Savings account

23.

Which options describe actions you can do with online banking? Select all that apply.

a)

Transfer money between accounts

b)

Deposit checks digitally

c)

View recent transactions

24.

A bank statement is best described as which document?

a)

Digital receipt for online transfers

b)

Monthly ledger sent to the account holder

c)

Agreement that sets a loan’s repayment schedule

25.

Which term means an automatic paycheck deposit without using a paper check?

a)

Overdraft protection

b)

Savings transfer

c)

Direct deposit

26.

Someone borrows $500 from the bank but gets an extra charge for using the money. What is the extra charge called?

a)

Interest

b)

Overdraft fee

c)

Principal

27.

You wrote a check but need to make sure no one can use it. Which action describes this?

a)

Void the check

b)

Open a savings

c)

Transfer online