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- 1. Multiple ChoiceGross income – deductions =Social SecurityMedicarenet incomeemployee benefits
- 2. Multiple ChoiceShannon is reviewing her pay stub to determine how much money she earned before her deductions were subtracted. Which column should she check to find this amount?Net IncomeHours and EarningsEmployer ContributionsGross Income
- 3. Multiple ChoiceThe most secure method for an employer to pay employees is to use:direct depositpayroll cardprinted paycheckin‐store credit
- 4. Multiple ChoiceHunter has been offered a job by a local mechanic who has offered to pay him in cash rather than by paper paycheck, direct deposit, or payroll card. Hunter is excited that the amount of money he will take home each week will be larger since his employer won’t be deducting any taxes from it. His employer wants to hire him for the 10 weeks of his summer break and expects to pay him $300 per week. Which statement below is most likely to be true?Hunter will not need to pay taxes on the income from his summer job because the total amount he will earn is under the amount required for federal tax deductions.It is illegal for Hunter to receive payment for his work in cash. He could be fined for doing so.Hunter will need to pay his federal and state taxes on his own since his employer is not paying these required taxes for him.Hunter’s employer is doing him a favor by offering to pay him in cash. Hunter will potentially earn more by this method of payment.
- 5. Multiple ChoiceThe regular schedule that employers pay their employees is called the .worker’s compensationpay periodemployee benefitsemployer contributions
- 6. Multiple ChoiceAlly learned in her Personal Finance class that some paycheck deductions are required and others are optional. She is checking over her paystub and sees several deductions. Which of the following would be TRUE?Federal Income Tax, State Income Tax, Social Security and Medicare deductions are all required deductions.Federal Income Tax, State Income Tax, Workers Compensations, and Life Insurance are all required deductions.Social Security, Medicare, Life Insurance, and Health Insurance are all required deductions.Social Security, Medicare, Federal Income Tax, and Workers Compensation are all required deductions.
- 7. Multiple ChoiceBob is working for a bank. He earns $8.00 an hour, works 40 hours a week, and gets paid every 2 weeks. Every pay period he pays $63.08 into federal withholdings tax, $33.21 into state withholdings tax, and $42.05 into FICA (Social Security Tax).
What is Bob’s gross pay on his paycheck?$501.66$320.00$576.92$640.00 - 8. Multiple ChoiceBob is working for a bank. He earns $8.00 an hour, works 40 hours a week, and gets paid every 2 weeks. Every pay period he pays $63.08 into federal withholdings tax, $33.21 into state withholdings tax, and $42.05 into FICA (Social Security Tax).
What is Bob’s net pay on his paycheck?$501.66$363.32$576.92$640.00 - 9. Multiple ChoiceSarah learned in her Financial Education class that she needs to consider the Cost of Living when comparing job offers. Which statement is most accurate?How much she will spend in moving expenses to re‐locate to the city where her new job is.The average cost of basic necessities, such as housing and food in the city where her new job is.The total value of the benefits package she will be offered in her new job.The total amount of her college costs compared to the salary she is being offered in her new job.
- 10. Multiple ChoiceThe average cost of basic necessities, such as housing and food for a particular city is call the:Standard of LivingLifestyleCost of LivingEconomy of Living
- 11. Multiple ChoiceSteven is considering taking a job with a company that is offering gym memberships, flexible hours, repayment of education loans, merchandise discounts, and childcare. These components of the job offer are called:employee benefitsjob perkswork incentivesompetitive hiring practices
- 12. Multiple ChoiceTo be considered for lifelong employment a person must continually maintain their employability. Three actions below will help to maintain employability. Which one WILL NOT?Maintain high standards in honesty, reliability, and punctuality.Adjust your actions to be appropriate for different situations you find yourself in, because you realize that what is appropriate in social situations is not necessarily appropriate in the work environment.Continue to learn by taking classes and striving for continual improvement on the job.Seek ways to blend your personal and professional images online to enable current and future employers to see that you have a varied and interesting life both in and outside of work.
- 13. Multiple ChoiceSusan is currently working in Kansas City, MO earning $30,000 per year. She is offered a position in Indianapolis, IN earning $32,000 per year. If Kansas City’s Cost of Living Index is 100 and Indianapolis’ Cost of Living Index is 125, which is true?Susan will have more spending power if she moves to Indianapolis.Susan will have more spending power if she stays in Kansas City.Susan will have the same spending power in Indianapolis as she has in Kansas City.There is not enough information to decide.
- 14. Multiple ChoiceWhen Rob graduated from college he considered two different job offers before accepting his job as an accountant in the IT department of a local manufacturing plant. He loves that he can walk or ride his bike to work each day. He also loves to travel and his job will require him to travel several times each year to conduct audits in manufacturing plants throughout the US, Europe, and Asia. He receives a monthly salary and his employer pays his health insurance. His employer also matches the funds he saves in his personal retirement account. Rob has always been very healthy but he appreciates knowing that he has several days of paid sick leave each year if he needs them, along with 1 week of paid vacation. His company is encouraging him to complete the classes he needs to earn his CPA by paying for half of the tuition for the classes he needs to take. Answer the following questions about Rob and his job:
Rob’s parents asked him what employee benefits his employer was providing. Which would be consideredmonthly salarylocation within walking distance of his apartmentpaid sick leavetravel opportunities - 15. Multiple ChoiceWhen Rob compared the Cost of Living Index for the city he currently lives in with the city where the other job was located, the index for his city was 106 and the index for the other city was 78. Which statement is most likely to be TRUE?Rob chose his current job because the Cost of Living Index indicated that it would be cheaper to live in his current city that it would have been in the other city.Rob chose his current job for reasons other than a lower cost of living.The cost of re‐locating to the other city increased the cost of living there so Rob chose to live in his current city.Even though the job in the other city offered a higher salary, it wasn’t enough to make up the difference for that city’s higher cost of living.
- 16. Multiple ChoiceSean plans to attend college in 2 years. He and his family have saved some money to help pay for it but he want to explore ways he can receive money he WON’T need to repay. Which set of options below should he explore?a. Federal Perkins Loans, PLUS and local bank loansa. Federal Student Grants, PLUS Loans, and scholarshipsa. Pell Grants, Work‐study, and scholarshipsa. Work‐study, scholarships and PLUS Loans
- 17. Multiple ChoiceDirect Subsidized Stafford Loans offer some features that are different when compared to borrowing money from a bank to pay for college. Which of the following is NOT difference between of a Direct Subsidized Stafford Loan and a typical bank loan?a. Interest rates for Stafford loans tend to be higher because the loans are held for a relatively long period of time.a. Stafford Loans have deferment options.a. Stafford Loans typically have a grace period.a. Student families must complete a FAFSA (Free Application For Federal Student Aid) in order to apply for a Stafford Loan.
- 18. Multiple ChoiceCarson’s family has always struggled financially due to his parents’ leaving high school before graduating and working lower paying jobs to support the family. His parents don’t want him to make the same mistake and are encouraging him to apply for scholarships and any type of student aid he might qualify for. Which application will determine which typed of need‐based aid he will qualify for?a. Perkins Federal Loan Applicationa. Direct Subsidized Stafford Loan Applicationa. Federal Work Study Applicationa. Free Application for Federal Student Aid (FAFSA)
- 19. Multiple ChoiceJaimen is struggling to make his student loan payments after college. He is considering defaulting on the student loan. Which is not a potential consequence if he decides to default on the student loan?a. He could be denied credit cards, car or home loans, or apartment leases.a. The bank could refuse to allow him to open a checking account.a. He may not be able to obtain a marriage license.a. His wages may be garnished.
- 20. Multiple ChoiceA non‐need‐based loan from the federal government the interest of which ispaid for by the borrowerUnsubsidized loanScholarshipGrantFAFSA
- 21. Multiple ChoiceA need‐based loan from the federal government, the interest of which is paidfor by the U.S. Department of Education while the borrower is in school andduring grace and deferment periods.Subsidized loanPINPersonal LoanGrant
- 22. Multiple ChoicePostponement of payment on a loan allowed under certain conditions andduring which interest does not accruegrace periodDeferment periodconsolidatenet price
- 23. Multiple ChoiceThe difference between the cost of attending a particular school and theexpected family contribution.EFCloan servicerFinancial needwork study
- 24. Multiple ChoiceAbility to stop or reduce loan payments for up to 12 months while interest isaccruingcost of attendanceloan defaultnet priceforebearance
- 25. Multiple ChoiceA tax‐exempt financial aid that may be given for many purposes, not necessarilyjust for educationgrantscholarshipEFCNet price
- 26. Multiple ChoiceFailure to pay a loan according to the agreed upon termsdeferment periodstudent aid reportloan defaultwork study
- 27. Multiple ChoiceMoney awarded to students that does not have to be repaid and is based onacademic or other achievement to help pay for education expensessubsidized loangrantunsubsidized loanscholarship
- 28. Multiple ChoiceThe average cost of basic necessities, such as housing and foodbenefitscost of livingwell beingwages
- 29. Multiple ChoiceProducts or services provided by an employer that provide extra value beyond wagesemployee benefitscost of livingschedulework environment
- 30. Multiple ChoiceA state‐sponsored system that pays monetary benefits to workers who become injured ordisabled on the jobworkers compensationlife insurancesalarypay stub
- 31. Multiple ChoiceTotal tax billpayroll taxnet incometax liabilitycommission
- 32. Multiple ChoiceOutlines the deductions made to wagespaper paycheckpay stubpayroll carddebit card
- 33. Multiple ChoiceAmount of money left once all deductions have been taken from gross incomew-4gross incomenet incomedependent
- 34. Multiple ChoiceA person who relies on the taxpayer for financial supportdependentallowancesemploymentincome tax
- 35. Multiple ChoiceTaxes paid to federal, state and local governments on the amount of money earnedunemployment insurancesocial securityMedicareincome tax
- 36. Multiple ChoiceA federal government program that funds retirement accounts, financially supportscitizens who have experienced profound disability, the premature death of a parent (ifunder the age of 18), or the premature death of a spouse in a family with childrensocial securitymedicaidmedicareworkers compensation
- 37. Multiple ChoiceThe common name for the Free Application for Federal Student Aid formprepared annually to determine eligibility for post‐secondary financial aidFAFSApell grantPINstudent loan
- 38. Multiple ChoiceA four digit number used as an electronic signaturePINSocial security numberEFCnet price
- 39. Multiple ChoiceA federal program whose main purpose is to help pay for health care for those over 65life insuranceemployee benefitsmedicareworkers compensation
- 40. Multiple ChoiceJamie has elected to be paid by direct deposit at her new job. This means .She will receive her paycheck mailed directly to her each pay period.She will receive her pay directly into her checking account at her depository institution for each pay period.She will receive her pay automatically loaded onto her payroll card at the end of each pay period.She will receive her paycheck delivered directly to her at her place of employment at the end of each pay period.
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