Question

1. what is a bond?

a. a loan you give to a company or government
b. a type of checking account
c. ownership in a business
d. a credit card

1. which document explains your earnings and deductions?

a. tax return
b. pay stub
c. resume
d. invoice

1. what is federal income tax used for?

a. funding national services and programs
b. paying only local teachers
c. supporting private businesses
d. eliminating personal debt

1. filing taxes means:

a. avoiding taxes legally
b. asking for a loan
c. sending your financial information to the government each year
d. opening a savings account

1. which investment usually carries the most risk?

a. bonds
b. savings accounts
c. certificates of deposit
d. stocks

1. what is compound interest?

a. interest earned only once
b. fees charged by banks
c. interest earned on both your money and previous interest
d. a government tax

Explanation:

1. A bond is a fixed-income instrument representing a loan from an investor to an entity (company/government).
2. A pay stub itemizes an employee's earnings, deductions, and net pay for a pay period.
3. Federal income tax revenue funds national-level public services, infrastructure, and government programs.
4. Filing taxes refers to submitting annual financial information to the government to calculate tax liability or refunds.
5. Stocks represent partial ownership in a company, and their value fluctuates heavily with market conditions, making them the riskiest option listed.
6. Compound interest is calculated on the initial principal plus all accumulated interest from previous periods.

Answer:

1. A. A loan you give to a company or government
2. B. Pay stub
3. A. Funding national services and programs
4. C. Sending your financial information to the government each year
5. D. Stocks
6. C. Interest earned on both your money and previous interest