#1
What is the purpose of Form W-4 in the United States?
To report income earned
To claim tax deductions
To calculate federal income tax withholding
To file for unemployment benefits
#2
What is the term for the portion of a paycheck that an employer withholds for federal income taxes?
Net income
Gross income
Taxable income
Withholding
#3
What is the purpose of a 1099 form in the United States?
To report interest income
To report wages and taxes withheld by an employer
To report self-employment income and certain other financial transactions
To report charitable contributions
#4
What is the term for a type of retirement plan where employers contribute a fixed percentage of employees' income to their retirement accounts?
IRA
401(k)
Defined contribution plan
Defined benefit plan
#5
What is the purpose of the FICA tax in the United States?
To fund Social Security and Medicare programs
To support public education
To regulate environmental policies
To provide unemployment compensation
#6
What is the term for income that is not subject to taxation?
Taxable income
Gross income
Exempt income
Deductions
#7
Which of the following is a tax-advantaged retirement savings account in the United States?
401(k)
Roth IRA
Both A and B
Neither A nor B
#8
What is the purpose of a W-2 form in the United States?
To report interest earned
To report investment income
To report wages and taxes withheld by an employer
To report charitable donations
#9
What is the difference between a traditional IRA and a Roth IRA?
Tax-free withdrawals in retirement
Tax-deductible contributions
Tax-free contributions
Tax-free growth but taxable withdrawals
#10
What is the term for a tax imposed on the transfer of property upon death?
Income tax
Estate tax
Property tax
Sales tax
#11
What is the primary purpose of a health savings account (HSA) in the United States?
To provide life insurance
To fund educational expenses
To save for retirement
To cover qualified medical expenses with tax advantages
#12
What does the term 'FICO score' represent in the context of personal finance?
Credit score
Savings account balance
Investment portfolio
Monthly income
#13
In the context of employment, what is the purpose of a 401(k) plan?
To provide health insurance
To offer paid time off
To provide retirement savings for employees
To offer stock options
#14
What is the purpose of a budget in personal finance?
To track spending
To limit income
To maximize debt
To increase taxes
#15
What is the significance of the Fair Labor Standards Act (FLSA) in the United States?
Establishing a minimum wage
Regulating stock markets
Overseeing international trade agreements
Managing environmental regulations
#16
In the context of personal finance, what does the term 'liquidity' refer to?
Availability of cash or assets that can be quickly converted to cash
The total value of one's assets
The ability to secure a loan
The stability of investment portfolios
#17
What is the purpose of a FUTA tax in the United States?
To fund Social Security benefits
To provide unemployment compensation to workers who have lost their jobs
To support public education
To regulate environmental policies