finance terms

Question 1

What is Fiscal Policy?

Answer 1

Government decisions on taxation and spending to influence the economy.

Question 2

What is Monetary Policy?

Answer 2

Central bank actions to control money supply and interest rates.

Question 3

Define Earned Income.

Answer 3

Money received from working (wages, salary, tips, etc.).

Question 4

What are Wages?

Answer 4

Hourly pay for work performed.

Question 5

What are Overtime Wages?

Answer 5

Additional pay for hours worked beyond the regular schedule.

Question 6

Define Salary.

Answer 6

Fixed annual or monthly pay for a job.

Question 7

What is Commission?

Answer 7

Earnings based on sales performance.

Question 8

What are Tips?

Answer 8

Extra money given by customers for service.

Question 9

What is a Bonus?

Answer 9

Extra pay awarded for performance or achievements.

Question 10

Define Gross Pay.

Answer 10

Total earnings before deductions.

Question 11

What is Net Pay?

Answer 11

Earnings after all deductions (take-home pay).

Question 12

What is a W-4 Form?

Answer 12

Employee form for tax withholding preferences.

Question 13

What is a W-2 Form?

Answer 13

Employer-provided summary of annual earnings and taxes withheld.

Question 14

Define Employee Benefits.

Answer 14

Non-wage compensation (health insurance, retirement plans, etc.).

Question 15

What is Gross Income?

Answer 15

Total income before taxes and deductions.

Question 16

What is Net Income?

Answer 16

Income remaining after deductions and taxes.

Question 17

Define Adjusted Gross Income (AGI).

Answer 17

Gross income minus specific deductions.

Question 18

What are Values?

Answer 18

Beliefs about what is important.

Question 19

Define Ethics.

Answer 19

Rules about right and wrong.

Question 20

What are Morals?

Answer 20

Personal beliefs about right and wrong.

Question 21

What is a Tariff?

Answer 21

A tax on imports.

Question 22

What is Federal Income Tax?

Answer 22

A tax on earnings paid to the U.S. government.

Question 23

Define Payroll Tax.

Answer 23

A tax taken from wages for government programs.

Question 24

What does FICA stand for?

Answer 24

A payroll tax for Social Security and Medicare.

Federal insurance contributions act

Question 25

What is Corporate Income Tax?

Answer 25

A tax on business profits.

Question 26

Define Excise Tax.

Answer 26

A tax on specific goods (e.g., gas, alcohol).

Question 27

What is Estate Tax?

Answer 27

A tax on inherited wealth.

Question 28

Define Progressive Tax.

Answer 28

Higher income = Higher tax rate.

Question 29

What is a Regressive Tax?

Answer 29

Higher income = Lower tax burden.

Question 30

What is a Flat Tax?

Answer 30

Same tax rate for everyone.

Question 31

Define Proportional Tax.

Answer 31

Same percentage tax for all incomes.

Question 32

What is an Audit?

Answer 32

A government check of financial records.

Question 33

What is a Standardized Deduction?

Answer 33

A fixed tax deduction amount.

Question 34

Define Itemized Deduction.

Answer 34

Specific expenses deducted from taxable income.

Question 35

What is Mandatory Spending?

Answer 35

Required government spending (e.g., Social Security).

Question 36

What is Discretionary Spending?

Answer 36

Optional government spending (e.g., defense, education).

Question 37

what is a 1040 form

Answer 37

The 1040 form is used by U.S. taxpayers to report their income and taxes to the IRS.