A benefit of holding an investment for over a year rather than selling it quickly is

capital gains on the investment will be taxed at lower rate

Money left over after paying taxes, fixed and other essential living expenses, is:

Discretionary/Disposable Income

An important consideration when saving money for emergencies is:

high degree of safety and liquidity

Which of the following is necessary for successful budgeting?

The ability to adjust spending to money available

The amount of money one will receive from the Social Security System depends on the person's

earnings over a lifetime of work.

Financial planning is important because it helps you to:

reach financial goals and protect your assets

A good example of a well-stated financial goal is:

Pay off $5,000 in credit card debt in two years

In terms of their finances, when a couple has a baby, they will

receive an additional tax exemption because of the baby.

Electricity and food expenditures are:

variable expenses that change from one period to another

A person complains about how expensive it is to be a cigarette smoker this is likely because

the government imposes an excise tax on them.

One's debt ratio shows the relationship between debt and net worth. The lower the ratio the

better off financially the person is.

Can Cathy withdraw money from her IRA savings account?

There is a 10% penalty on any money taken out before age 59

Financial plans need to:

be changed during different stages in life

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MoneyPower: Money Management

17 termsStudBud Administration96 plays

Flashcards17 cardsFPractice quizPHost liveL

Questions 17

Answers

1
A benefit of holding an investment for over a year rather than selling it quickly is
fees won't be charged by brokers for selling the investment
money earned on the investment will be considered tax-free.
capital gains on the investment will be taxed at lower rate
profits on the investment can be averaged over longer time
2
In addition to monthly mortgage payments, each year a homeowner can expect to pay
property taxes.
an assessment fee.
title insurance.
a brokers fee.
3
Money left over after paying taxes, fixed and other essential living expenses, is:
Discretionary/Disposable Income
Net Pay
Play money
Net Surplus
4
An example of a fixed expense is:
Entertainment
Vacations
Apartment rent
Restaurants
5
An important consideration when saving money for emergencies is:
diversification
return on investment
high growth potential
high degree of safety and liquidity
6
Which of the following is necessary for successful budgeting?
The location of your banks
A copy of credit card report
The ability to adjust spending to money available
A list of unexpected income
7
The amount of money one will receive from the Social Security System depends on the person's
average gross income from the last five years of employment.
net income from the person's last job.
earnings over a lifetime of work.
contributions minus the money from other pension plans.
8
Financial planning is important because it helps you to:
have higher expectations
eliminate risk on investments
achieve all personal goals
reach financial goals and protect your assets
9
A good example of a well-stated financial goal is:
Buy a house
Buy a $25,000 car
Become financially independent
Pay off $5,000 in credit card debt in two years
10
Which career would be possible choices for someone interested in money and finance?
Psychologist
Musician
Social worker
Insurance actuary
11
In terms of their finances, when a couple has a baby, they will
receive an additional tax exemption because of the baby.
need to obtain a W-2 form for the baby.
automatically start paying Social Security for the baby.
have to file a separate income tax form for the baby.
12
Electricity and food expenditures are:
fixed expenses that remain the same from over time
personal expenses for an individual or family
variable expenses that change from one period to another
discreet expenses that do not have to be paid monthly
13
A person complains about how expensive it is to be a cigarette smoker this is likely because
their cost is controlled by the FDA.
the tobacco supply is controlled by the FTC
the government imposes an excise tax on them.
the tobacco industry imports most of the tobacco.
14
A man budgeted $200 a month for clothing. He spent $150 on clothing this month, this is ___.
an income overage.
a budget variance.
an outflow deficit.
a budget deficit.
15
One's debt ratio shows the relationship between debt and net worth. The lower the ratio the
better off financially the person is.
less liquid assets the person has.
worse off financially the person is.
more liquid assets the person has.
16
Can Cathy withdraw money from her IRA savings account?
She can take money at any time since she made the deposits
Money cannot be withdrawn from an IRA before age 59
50% penalty if she doesnt start withdrawing money at age 59
There is a 10% penalty on any money taken out before age 59
17
Financial plans need to:
be changed during different stages in life
include income and eliminate risk
include income but not expenses
to be approved by an accountant

MoneyPower: Money Management Flashcards | StudBud

MoneyPower: Money Management

17 termsStudBud Administration96 plays

MoneyPower: Money Management

Flashcards17 cardsFPractice quizPHost liveL

Questions 17

Answers

1
A benefit of holding an investment for over a year rather than selling it quickly is
fees won't be charged by brokers for selling the investment
money earned on the investment will be considered tax-free.
capital gains on the investment will be taxed at lower rate
profits on the investment can be averaged over longer time
2
In addition to monthly mortgage payments, each year a homeowner can expect to pay
property taxes.
an assessment fee.
title insurance.
a brokers fee.
3
Money left over after paying taxes, fixed and other essential living expenses, is:
Discretionary/Disposable Income
Net Pay
Play money
Net Surplus
4
An example of a fixed expense is:
Entertainment
Vacations
Apartment rent
Restaurants
5
An important consideration when saving money for emergencies is:
diversification
return on investment
high growth potential
high degree of safety and liquidity
6
Which of the following is necessary for successful budgeting?
The location of your banks
A copy of credit card report
The ability to adjust spending to money available
A list of unexpected income
7
The amount of money one will receive from the Social Security System depends on the person's
average gross income from the last five years of employment.
net income from the person's last job.
earnings over a lifetime of work.
contributions minus the money from other pension plans.
8
Financial planning is important because it helps you to:
have higher expectations
eliminate risk on investments
achieve all personal goals
reach financial goals and protect your assets
9
A good example of a well-stated financial goal is:
Buy a house
Buy a $25,000 car
Become financially independent
Pay off $5,000 in credit card debt in two years
10
Which career would be possible choices for someone interested in money and finance?
Psychologist
Musician
Social worker
Insurance actuary
11
In terms of their finances, when a couple has a baby, they will
receive an additional tax exemption because of the baby.
need to obtain a W-2 form for the baby.
automatically start paying Social Security for the baby.
have to file a separate income tax form for the baby.
12
Electricity and food expenditures are:
fixed expenses that remain the same from over time
personal expenses for an individual or family
variable expenses that change from one period to another
discreet expenses that do not have to be paid monthly
13
A person complains about how expensive it is to be a cigarette smoker this is likely because
their cost is controlled by the FDA.
the tobacco supply is controlled by the FTC
the government imposes an excise tax on them.
the tobacco industry imports most of the tobacco.
14
A man budgeted $200 a month for clothing. He spent $150 on clothing this month, this is ___.
an income overage.
a budget variance.
an outflow deficit.
a budget deficit.
15
One's debt ratio shows the relationship between debt and net worth. The lower the ratio the
better off financially the person is.
less liquid assets the person has.
worse off financially the person is.
more liquid assets the person has.
16
Can Cathy withdraw money from her IRA savings account?
She can take money at any time since she made the deposits
Money cannot be withdrawn from an IRA before age 59
50% penalty if she doesnt start withdrawing money at age 59
There is a 10% penalty on any money taken out before age 59
17
Financial plans need to:
be changed during different stages in life
include income and eliminate risk
include income but not expenses
to be approved by an accountant