Finance Flashcards

Personal Finance Final

________ are the principals, standards, or qualities considered worthwhile Values
To assign monetary values to employee benefits, you can place a market value on the benefit or calculate the ________ value of the benefit. Future
After hiring an employee, the law requires employers to do all the following except pay all the employee’s health care expenses.
When changing employers wisest options for the money you have in your current empolyer-sponsered retirement plan typically involve all but which of the following withdrawing and spending the money
which of the following resources would be least helpful in your job search? classified advertisements
It is especially important to use “key phrases” when preparing your resume because computer software is typically used to scan resumes and select better qualified candidates
All of the following would be considered wise moves in your career planning except assuming that your need for higher education is finished once you obtain a job in your chosen field.
A________ is an experienced person, such as a senior coworker, who offers friendly career-related advise, guidance, and coaching to a less experienced worker. mentor
In preparation for a job interview you should compile some personal stories and anticipate interview questions and prepare responses.
Which of the following is likely to be a differentiator on a resume or during a job interview based on what Audrey Waldron told us? Explaining to potential employer why we are passionate about the job or why we are pursuing the career we are.
Which of the following would be considered smart financial planning? Contribute to your employer-sponsored 401k retirement plan at least up to the amount of the employer’s matching contribution.
Taxable income is determined by subtracting all but which one of the following from gross income. Credits
A tax that requires a higher-income person to pay a higher percentage of his or her income in taxes is called a ______ tax progressive
This year, Jeff is in the 28 percent marginal tax bracket, but next year Jeff expects to be in the 25 percent marginal tax bracket. Therefore, the estimated income tax liability on this $2,500 income would be_________ this year, and ________ next year. $700, $375
Judy wants to give $3,200 to the building fund at her local church. Assuming Judy can itemize her deductions, how much will this contribution save her on her federal income taxes if she is in the 28 percent marginal tax bracket.? $896
Your average tax rate is less than your marginal tax rate
Which of the following types of subtractions cannot be taken by a taxpayer if he or she itemizes deductions standard deduction
Total Itemized deduction must be______ to reduce your tax liability greater than your standard deduction
Iris is an unmarried college student age 21, and is claims as a dependent on her married parents’ tax return. What is the max number of personal exemptions Iris can claim on her own tax return? 0
Which of the following persons is practicing legal tax avoidance? Employee who deducts qualifying job-related expenses.
The best use of credit is probably to: Consolidate debts
The best measure of the true cost of credit is the annual percentage rate of interest
Which of the following is generally not part of the process of opening a credit account? Appraisal of assets
A factor in the development of credit scores is amounts owed, types of credit you use, payment history
A borrower with excellent credit history would be most likely to receive cre4dit with both higher credit limits and lower interest rates
Credit bureau files are used to help evaluate applications for: credit, employment, insurance
The _______ the APR, the________ the true cost of the credit. Lower, lower
Which of the following is a court-sanctioned procedure bu which a portion of your wages are set aside by your employer to pay a debt? garnishment
Negative credit information (excluding bankruptcy) can generally be included on a credit file for______ years. seven
Your credit card liability for fraudulent usage of your lost or stolen credit cards is limited to _____ if you report the loss. $50
The types of insurance you carry but which covers losses suffered by others is called_______ insurance Liability
The decision not to buy collision insurance on an old car is called risk retention
Bob has a renter’s policy with a max limit for personal property of $30,000. When i=his apartment suffered fire damage, $15,000 of his personal property was destroyed. The insurance would pay no more than ____ in this case. $15,000
______ insurance is required in most states automobile
Bruce’s car is pretty old now, and its resale value is low. Since he is always interested in saving insurance premium dollars when appropriate, which of the following types of insurance should he consider dropping? Collision
The person on whose life a life insurance policy is written is called the: Insured
Life insurance needs are____ until your first child is born, then the need is____ until the youngest child is ten, and then the need________ until retirement. low, high, decreases
Which of the following is a characteristic of term life insurance? Provides no investment features
Risk retention would be most appropriate in which of the following cases? Coverage for loss of contact lens
Which of the following types of insurance can be purchased only through a federal government program? flood insurance
To make it possible for consumers to comply with th e individual mandate to buy health insurance the Affordable Care Act established ________ run by their states federal government. health insurance exchanges
Asa result of the health care reform patient protection and affordable health care act, a child may stay on a parent’s health care plan until age: 26
Under the affordable care act, all health care plans must include: ten specific essential health benefits
Which of the following government programs is jointly funded by federal an state governments medicaid
The period of time each year when you can make changes in your selection of health care plans available from your employer is called ope-enrollment period
One cannot rely on worker’s compensation to cover your health care needs because it: Covers only job-related injuries and illnesses
Eligibility for which of the following is based on household income and net worth? Medicaid
Which type of insurance provide reimbursement for costs associated with custodial care in a nursing facility or at home? Long-term care insurance
Persons who have a high=deductble health plan can make tax-sheltered deposits into an investment account called a _____ from which they can pay medical expenses. Health savings account
Your health insurance requires that you pay $50 each time you visit the doctor’s office and $15 for each prescription drug. This is an example of: a copayment
Net Assest Value increases when the value of the underlying securities increases
which of the following types of investment companies operates much like an index fund: Exchange traded fund (ETF)
Mutual fund investors must pay federal income taxes on: ordinary income dividend distributions, capital gains distributions, capital gains from selling their shares
Open-end mutual fund shares have good liquidity because the fund company will buy back the shares and send you cash whenever requested
advantages of mutual funds include diversification, professional management, liquidity
Compounding is attained in mutual fund investing through automatic reinvestment of dividends
A mutual fund’s _______ can allow investors to have amounts as low as $25 per month transferred from their bank account to purchase shares automatic investment program
Periodic, systematic investment in mutual funds is very much like_______ when buying stocks dollar-cost averaging
A REIT is a type of closed-end mutual fund that focuses on real estate
Growth funds specialize in securities of companies that are growing rapidly

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