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W!se Practice Questions - Money Flashcards | StudBud
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W!se Practice Questions - Money
W!se Practice Questions - Money
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Practice questions for the W!se Financial Literacy Test organized by Test Blueprint.
Flashcards
13 cards
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Questions
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Answers
1
What is one potential benefit of obtaining a college degree when it comes to job opportunities?
It may increase earning potential.
It may limit career opportunities to specific fields.
It may hinder networking and social opportunities.
It may increase the chances for entrepreneurship.
2
Which of the following is a good example of a making a financial “trade-off”?
trading your U.S. dollars for Euros.
skipping a few days of work to look for a new job.
skipping a few classes at school to go shopping at the mall.
skipping a few dinners out to save for a weekend trip.
3
If the inflation rate is 3%, how will it affect the purchasing power of someone spending $200 on consumer goods?
Their purchasing power will fluctuate unpredictably.
Their purchasing power will decrease.
Their purchasing power will increase.
Their purchasing power will remain the same.
4
Your take-home pay, or net income, is _________________.
the amount you receive after benefits
the total amount you earn.
the amount you receive after deductions
the amount of cash needed to fill one basketball net.
5
Which financial concept should you consider to accurately compare the value of two job's benefits?
Net worth.
Disposable income.
Gross income.
Total compensation.
6
A person makes $500 a week and receives a paycheck of $447. The $500 and $447 represent the person’s ____ and ____.
Hourly rate; wages.
Bonus; take home pay.
Net Pay; commission.
Gross pay; net pay.
7
A person might choose to become an entrepreneur instead of working for a company so they can _____________________.
create new products and ideas.
avoid taking risks.
receive a fixed salary every month.
have more structured work hours.
8
Which reflects the mandatory federal payroll deductions that are typically withheld from an employee’s paycheck?
Social Security, Medicare, State and Federal income taxes.
Social Security, Medicare, and Federal income taxes.
Retirement, health insurance, and life insurance benefits.
Medicaid, State, and Federal income taxes.
9
What is the agency responsible for collecting taxes at the federal level?
Internal Revenue Service (IRS)
Security and Exchange Commission (SEC)
Federal Reserve System (FED)
Consumer Financial Protection Bureau (CFPB)
10
What is a payday loan?
A type of loan offered by banks with low interest rates.
A short term, high interest loan due on the borrower’s next payday.
An interest free loan provided by a friend or family member.
A long-term installment loan with payments made each payday.
11
What is the potential advantage of using a direct deposit for receiving a paycheck?
It increases the amount of deposit.
It provides an opportunity to earn interest on the paycheck.
It requires a physical trip to the bank to deposit the check.
Allows for quicker access to the funds compared to receiving a paper check.
12
If a person increases the number of withholdings on their W4 form, their paycheck will
decrease.
remain the same.
fluctuate unpredictably.
increase.
13
Who in our economy is most impacted by a rising rate of inflation?
People with variable-rate mortgages.
Renters in urban areas.
Individuals with higher levels of savings.
Retirees living on fixed incomes.
