Financial Literacy: Income Final Exam Study Test.
Income - CORRECT ANSWER Money received, especially on a regular basis, for work or through investments.
Wages - CORRECT ANSWER A fixed regular payment, typically paid on a daily or weekly basis, made by an employer to an employee, especially...
Income - CORRECT ANSWER Money received, especially on a regular basis, for work or through
investments.
Wages - CORRECT ANSWER A fixed regular payment, typically paid on a daily or weekly basis, made by
an employer to an employee, especially to a manual or unskilled worker.
NCUA - CORRECT ANSWER Federal insurance covering credit union accounts up to $250,000.
FDIC - CORRECT ANSWER Federal insurance covering bank accounts up to $250,000.
Federal Income Tax - CORRECT ANSWER A payroll deduction collected by employers by law and sent to
the federal government to support governmental programs.
State Income Tax - CORRECT ANSWER A pay deduction required by law that supports the state
government.
Garnishment - CORRECT ANSWER A legal process that allows part of your paycheck to be withheld for
payment of a debt such as alimony, child support, back taxes etc.
Benefits - CORRECT ANSWER Compensation in forms other than direct payment.
Paid Time Off - CORRECT ANSWER Provides employees time off with pay for such events as vacation.
FICA Taxes - CORRECT ANSWER Taxes paid by the employee and employer that are used to finance the
federal Social Security and Medicare programs.
, Federal Reserve System - CORRECT ANSWER The country's central banking system, which is responsible
for the nation's monetary policy by regulating the supply of money and interest rates.
Online Banking - CORRECT ANSWER Using the Internet and a bank's website to keep track of bank
accounts, moving money from one account to another, and paying bills.
Reconciling a Bank Account - CORRECT ANSWER Reconcile balance per books and balance per bank to
their "correct" or "true" balance.
W2 Form - CORRECT ANSWER Wage and Tax Statement; a report furnished by the employer for each
employee indicating gross earnings and deductions.
W4 Form - CORRECT ANSWER Employee's Withholding Allowance Certificate - Determines the
percentage of gross pay
which will be withheld for taxes.
I9 Form - CORRECT ANSWER Documentation verifying the employees identity and legal authorization to
accept employment in the United States
Net Pay - CORRECT ANSWER Amount of income left after taxes and deductions have been taken out.
Gross Pay - CORRECT ANSWER The total amount of an employee's earnings before deductions are taken
out.
Command Economy - CORRECT ANSWER An economic system in which the government controls a
country's economy.
Mixed Economy - CORRECT ANSWER An economy in which private enterprise exists in combination with
a considerable amount of government regulation and promotion.
Free Market Economy - CORRECT ANSWER Capitalism, private ownership law of supply and demand.
The benefits of buying summaries with Stuvia:
Guaranteed quality through customer reviews
Stuvia customers have reviewed more than 700,000 summaries. This how you know that you are buying the best documents.
Quick and easy check-out
You can quickly pay through credit card for the summaries. There is no membership needed.
Focus on what matters
Your fellow students write the study notes themselves, which is why the documents are always reliable and up-to-date. This ensures you quickly get to the core!
Frequently asked questions
What do I get when I buy this document?
You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.
Satisfaction guarantee: how does it work?
Our satisfaction guarantee ensures that you always find a study document that suits you well. You fill out a form, and our customer service team takes care of the rest.
Who am I buying these notes from?
Stuvia is a marketplace, so you are not buying this document from us, but from seller Nursewendo. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy these notes for £9.46. You're not tied to anything after your purchase.
