Future Business Leaders of America (FBLA) Personal Finance Practice Test

Receiving a paycheck every two weeks means you are paid:

1. Monthly

2. Weekly

3. Bi-weekly

4. Quarterly

The correct answer is: Bi-weekly

Receiving a paycheck every two weeks signifies that you are paid on a bi-weekly schedule. This payment arrangement involves the employee receiving their wages once every two weeks, resulting in 26 pay periods in a year. This method is common in many organizations because it allows for regular income that aligns closely with both monthly expenses and budgeting practices. In contrast, being paid monthly would mean receiving a single paycheck once per month, resulting in only 12 pay periods annually. A weekly payment schedule entails receiving earnings every week, which makes for a higher frequency of pay periods, amounting to 52 in a year. Quarterly payments, on the other hand, occur every three months, equating to just four paychecks annualized. Each of these alternatives offers a different frequency and method of payment, but the bi-weekly payment structure is specifically established to account for compensation every two weeks.