One of the benefits of holding an investment for over a year rather than selling it in less than a year is that the:

Capital gains on the investment will be taxed at a lower rate

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

Receive an additional tax exemption because of the baby

A person complains about how expensive it is to be a smoker. One of the reasons cigarettes are so expensive is that:

The government imposes an excise tax on them.

A person's debt ratio shows the relationship between debt and net worth. The lower the ratio, the:

Better off financially the person is

Electricity and food expenditures are:

Variable expenses that change from one period to another

You're single & a recent college graduate who just got your first full-time job. What should be your 1st financial goal?

Establishing a fund for emergencies

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W!SE - Practice Certification - Money Management

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Answers

1
One of the benefits of holding an investment for over a year rather than selling it in less than a year is that the:
Capital gains on the investment will be taxed at a lower rate
Money earned on the investment will be considered tax-free
Profits can be averaged over the length of time the investment is held
Fees will not be charged by brokers for selling the investment
2
You budgeted $200/month for clothing. This month you spent $150, therefore that budget item is considered to have:
A budget variance
An outflow deficit
A budget deficit
An income overage
3
In terms of their finances, when a couple has a baby, they will:
Receive an additional tax exemption because of the baby
Have to file a separate income tax form for the baby
Need to obtain a W-2 form for the bably
Automatically start paying Social Security payments for the baby
4
A person complains about how expensive it is to be a smoker. One of the reasons cigarettes are so expensive is that:
The government imposes an excise tax on them.
The tobacco supply is controlled by the Federal Trade Commission (FTC)
The tobacco industry imports most of the tobacco
Their cost is controlled by the Food and Drug Administration (FDA)
5
You can set up and Individual Retirement Account at:
A bank
A real estate agency
A small loan company
An insurance agency
6
A person's debt ratio shows the relationship between debt and net worth. The lower the ratio, the:
Better off financially the person is
More liquid assets the person has
Less liquid assets the person has
Worse off financially the person is
7
Your company will match your pre-tax contributions to the company's retirement plan, known as:
A Roth IRA
A traditional IRA
A 401(k)
A defined benefit plan
8
Electricity and food expenditures are:
Discreet expenses that do not have to be paid monthly
Variable expenses that change from one period to another
Fixed expenses that remain the same from one period to another
Personal expenses for an individual or family
9
An example of a fixed expense is:
Entertainment
Restaurants
Apartment Rent
Vacations
10
You're single & a recent college graduate who just got your first full-time job. What should be your 1st financial goal?
Establishing a fund for emergencies
Buying a house
Creating a stock portfolio
Buying a life insurance policy

W!SE - Practice Certification - Money Management Flashcards | StudBud