Financial Literacy Quiz

Last updated over 1 year ago
14 questions
1

A financial term is defined in below.

A tax that is added to the cost of goods and services.

Which term best matches this definition?

1

Three students describe gross income and net income.

* Sarah says that net income is the income that is earned before taxes are taken and gross income is the income after taxes are taken.

* Roland says that gross income is the income that is taken from the net income.

* Felix says that gross income is the income that is earned before taxes are taken and net income is the income after taxes are taken.

Which student made a correct statement about the types of income?

1

A financial term is defined in the box below.

A tax that is based on a person's earnings and is paid to the federal government.

Which term best matches this definition?

1

Mrs. Crane listed some advantages and disadvantages of a method of payment in the table.


Which method of payment best fits the characteristics in the chart?

1

Mr. Jones brought home the paycheck below and talked about the parts of it with his daughter.


Mr. Jones explained that he is able to use $1,158.37. What term describes this amount?

1

Mr. Jones explained that the tax withholdings are taken out by his employer.


Which term best describes this tax?

1

Lilly bought several items at the grocery store. She found that her total should have been $45.19, but she paid $48.92 at the register. Which term describes the additional fee Lilly paid?

1

Erica describes a method of payment to her classmates as follows:

- The user does not need to carry cash.
- The user can gain good credit.
- The user is charged with interest fees.
- Money is not taken from a bank account.

Which method of payment is Erica describing?

1

Mrs. Baker owns a home in her home town and land in the country. Each year, she must pay a tax for the value of both the home and the land. What is the name of the tax that she must pay each year?

1

Clay begins working his first job at the mall. His manager tells him that he will be earning $14.50 per hour and he will work 20 hours per week. Clay calculates that he will earn $580.00 each paycheck. Clay's paycheck shows only $440.50 for him to put into his bank account.

Clay's employer explains that some money is deducted for things such as taxes. What term describes the $580.00 that Clay earns before deductions?

6

Match each term with the definition that best describes it.

  • Money paid once a year to the government, based on how much is earned; mainly used to fund activities and serves the public
  • The amount of money earned after all taxes, insurance costs, etc. are taken out
  • Money paid by individuals or businesses who own land or property; money raised from this tax is mainly used for road repairs, building of local schools, etc.
  • The amount of money earned before all taxes, insurance costs, etc. are taken out
  • Money collected based on the cost of items purchased; each state sets its own retail tax, which is collected accordingly
  • A tax that includes Social Security and Medicare taxes and is paid by an employer
  • Sales tax
  • Payroll tax
  • Income tax
  • Property tax
  • Gross income
  • Net income
1

Which of these is NOT an example of sales tax?

1

What is payroll tax?

1

What definition best describes net income?