MONEY review for W!SE Financial Literacy Test Questions with Complete Solutions

Principal - The money originally invested or loaned, on which basis interest and returns are calculated Collateralized Loan - A loan that is secured by collateral, properties or assets that are subject to seizure on default. Barter - exchange goods without involving money Garnishment - a legal process that allows part of your paycheck to be withheld for payment of a debt gross pay - the total amount you earn before any deductions are subtracted net pay - the amount of a paycheck after the deductions are taken out Inflation - a general increase in prices FICA - Federal Insurance Contributions Act; tax levied on both employers and employees to pay for Social Security and medicare Windfall Income - any type of additional income over expenses that is completely unexpected compound interest - interest earned on both the principal amount and any interest already earned