Missouri Personal Finance Test (MoPFA) Exam Questions and Answers(Graded A)

Income - ANSWER-Earnings received as wages, rent, profit, or interest Wages - ANSWER-Payment for work Salary - ANSWER-Payment for work usually calculated in periods of a week or longer, tied to specific duties Discretionary income - ANSWER-Amount of income available for spending after the essentials have been taken care of (food, clothing, shelter) Direct deposit - ANSWER-Used to transfer money directly from employer's payroll to your checking or savings account Employee benefits - ANSWER-Something of value that an employee receives in addition to the hourly wages/salary Examples of employee benefits - ANSWER-life insurance, health insurance, dental/vision insurance, retirement plan (401 k) 401 k - ANSWER-Example of a retirement plan Pension plan - ANSWER-Gives a steady income to a person from an employer, labor union, or government entity - After retirement