Paycheck & Taxes
The total money one gets to "take home" from a paycheck after taxes and deductions are taken out is known as what?
Net pay, which is the actual amount you receive to spend.
When seeking to open a bank account, which of the following is needed?
Government-issued identification, such as a driver's license.
When one receives a product or service now, but pays for it later, it is known as what?
Credit, which allows you to pay for purchases at a later date.
Which of the following types of insurance assists in covering medical expenses associated with short-term illness and accidents?
Health insurance, which covers routine and emergency medical costs.
Which of the following will be paid for as part of the escrow funds included in a mortgage loan?
Property tax, which is collected by the lender to ensure it is paid to the government.
Which of the following is the form employers use to determine how much tax to deduct from a paycheck?
W-4, the form used to set your withholding allowances.
Which of the following is a financial institution that handles money, including keeping it safe for saving or commercial purposes?
A Bank, which is a primary institution for saving and commerce.
Which of the following best describes the concept of APR?
The credit card interest rate, calculated on a yearly basis.
Which of the following types of insurance provides income to people who depend on a wage earner after the wage earner dies?
Life insurance, which provides a payout to beneficiaries.
Which of the following is the typical amount of time in which a borrower must pay off a mortgage loan?
Thirty (30) years is the standard mortgage repayment period.
Which of the following is the form an employer provides to an employee to inform them of how much money was deducted from paychecks in a given year?
W-2, which summarizes your annual earnings and taxes paid.
A certificate of deposit (CD) differs from a traditional savings account in what way?
CDs must remain untouched for a fixed period of time to earn interest.
Which of the following is an advantage of maintaining a good credit score?
A greater chance of receiving a loan with a low interest rate
Which of the following types of insurance helps pay for stays in a nursing home?
Long-term care insurance, specifically for nursing homes or assisted living
When one party to a contract does not do what the contract requires, the individual has committed a what of the contract?
A Breach, meaning they failed to follow the legal agreement.
Which of the following statements best describes gross pay?
The amount of money one receives from their job before taxes or other deductions are taken out.
The phrase "balancing a checkbook" refers to which practice?
Comparing bank statements to withdrawal records (checks, ATM, ETF) to track spending.
A________ card is NOT an example of an installment loan.
Credit card, which is considered open-end/revolving credit rather than an installment loan.
The purpose of an umbrella insurance policy is best summarized as what?
To protect the holder against liability costs beyond what is covered by other insurance.
Which of the following positions can confirm signatures to a contract?
A Notary public, who is legally authorized to authenticate signatures.
Federal income tax brackets can be impacted by which of the following?
marriage status of the taxpayer, also known as filing status.
If one spends more money than they have in their bank account, they are charged a what?
An Overdraft fee for spending more than your available balance
This practice could negatively affect one's credit score?
Reaching the spending limit on one's credit account.
This is not an advantage of bundling insurance?
It increases insurance options, as bundling is for convenience and savings rather than expanding choice.
Which of the following is the correct sequence in the formation of a contract?
Offer, acceptance, consideration, agreement.