Personal Finance Unit 2

Which of the following is not true concerning Income Tax Refunds? It is advantageous to receive a large sum of money in the form of a refund so that you can use the money to pay down debt.
Relatives can be claimed as dependents on your tax return as long as they meet the following two guidelines. Select the two correct answers. -The dependent must earn less than $4,150 per year.-The dependent must not have provided over half of his or her support for the entire year.
If you opt to put money in a medical flexible spending account rather than trying to amass enough medical expenses to itemize on your tax return, you are taking advantage of _____. An exclusion.
A form of taxation in which everyone pays an equal rate of taxes is called a _____. Flat tax.
A form of taxation in which the highest income earner pays the largest percentage of taxes is called a _____. Progressive tax.
A form of taxation in which the lowest income earners pay the largest percentage of taxes is called a _____. Regressive tax.
Which of the following is not considered part of your gross income? Money your employer pays for your medical insurance.
Which of the following is not true about your adjusted gross income? It is your income plus your deductions.
Which of the following is true about standard deductions? They are tax breaks that you can claim without having to itemize.
A dollar-for-dollar reduction in your tax payment is called a _____. Credit.
An arrangement by which a company gives customers financial protection against loss or harm in return for payment. Insurance.
Determining , minimizing, and preventing accidental loss in a business, for example, by taking safety measures and buying insurance. Risk management.
The company that sells insurance. Insurer
The amount of money charged for a certain amount of insurance coverage. Premium.
The amount an insured person must pay before making a claim against an insurance policy before the insurer will pay any compensation. Deductible.
The amount or type of protection provided by a insurance policy. Coverage.
A statistician who calculates insurance premiums, risks, dividends, and annuity rates Actuary.
A fixed dollar amount of coverage for damages that an insured becomes legally liable to pay due to an accident or other negligence. Liability.
An application for payment under an insurance policy. Claim.
A contract of insurance. Policy.

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