Question

which type of retirement account offered by employers to their employees allows them to set aside tax-deferred income? sometimes employers will even match the employee contribution up to a certain amount

savings
mutual fund
401(k)
roth ira

which of the following is not an advantage of using credit?

it is useful in emergency situations.
it allows you to shop only at one store.
it is safer than carrying large sums of cash.
it is convenient.

which of the following is not a required deduction from your paycheck?

social security
savings deposits
state income tax
federal income tax

Explanation:

Analyze employer-sponsored retirement accounts

• Employer-sponsored: 401(k) is offered by employers.
• Tax-deferred: Contributions are made pre-tax.
• Employer match: Employers often match contributions.
• Roth IRA and Savings are individual, not employer-sponsored. Mutual funds are investment vehicles, not account types.

Evaluate advantages of using credit

• Advantages: Emergency use, safety over cash, convenience.
• Non-advantage: "It allows you to shop only at one store" is a restriction, not an advantage of credit in general.

Identify non-required paycheck deductions

• Required deductions: Social Security, State Income Tax, Federal Income Tax.
• Voluntary deductions: Savings Deposits are optional choices made by the employee.

Answer:

Question 1

• (A) Savings
• (B) Mutual fund
• (C) 401(k) (Correct answer)
• (D) Roth IRA

Question 2

• (A) It is useful in emergency situations.
• (B) It allows you to shop only at one store. (Correct answer)
• (C) It is safer than carrying large sums of cash.
• (D) It is convenient.

Question 3

• (A) Social Security
• (B) Savings Deposits (Correct answer)
• (C) State Income Tax
• (D) Federal Income Tax