pay taxes when the money goes in, but are tax-free in retirement

A defined contribution plan, like a 401(k), is when . . .

you pay a regular amount into the account every month.

Roth accounts are better than traditional accounts for young people because . . .

they‘re often paying little to no income tax

Free trade, compared to protectionism, tends to . . .

Provides more goods & services, but may hurt domestic industry

The main effect of inflation is . . .

it decreases the value of money

Local taxes pay for things like . . .

Law enforcement, firefighters, and parks & recreation

Dollar Cost Averaging refers to . . .

investing regular amounts of money at regular intervals

The equilibrium point occurs when . . .

producers and consumers agree on price

Mutual funds are . . .

groups of stocks and/or bonds purchased as a single unit

A good place to put your emergency fund would be . . .

in an easily accessible account that pays more in interest than inflation

The suggested amount for an emergency fund is . . .

Enough to cover three to six months of basic expenses

Mortgage points are optional and refer to . . .

Money paid at closing to lower the interest rate of the mortgage

All of the following are true about Index funds EXCEPT . . .

there are limited options of index funds

Who does PMI protect?

The bank that holds the mortgage

Actively managed funds . . .

have professional managers who actively buy and sell what’s in the fund

If the business cycle is in an expansionary period, Congress & the President might . . .

increase taxes and/or decrease spending

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EPF - Cumulative Quiz Exam

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1
Roth accounts . . .
pay taxes when the money is withdrawn, but are tax-free when it goes in
pay taxes when the money goes in, but are tax-free in retirement
limit tax obligations for those with incomes below $100,000
limit tax obligations for those with incomes below $50,000
2
Federal taxes pay for all of the following EXCEPT . . .
National Defense
Interstate Highways
public school construction
Medicare & Social Security
3
An ideal market structure that features numerous, well-informed buyers and sellers . . .
perfect competition
monopolistic oligarchy
perfect monopolism
monopolistic competition
4
A shortage of housing exists. This scarcity leads to . . .
a decrease in supply
an increase in demand
an increase in price
a decrease in demand
5
The cumulative total of all the budget shortfalls the US has run is . . .
The deficit
The national debt
Capital gains
Capital losses
6
Mortgage rates will always be higher than . . .
The Consumer Price Index
Auto loans rates
GDP Growth
The Federal Funds Rate
7
Ideally, a mortgage should be no more than _____ of your gross income.
50%
30%
36%
28%
8
Typically, mortgage rates need to be higher than ____ to make Mortgage Backed Securities (MBS) attractive to investors.
A 10-year treasury note
A 26 week treasury bill
A 2-year treasury note
A 30-year treasury bond
9
A defined contribution plan, like a 401(k), is when . . .
you receive a regular amount from your account every month.
you pay a regular amount into the account every month.
10
All of the following are now or were important industries in North Carolina, EXCEPT . . .
Furniture
Oil Refining
Textiles
Tobacco
11
One of the key reasons that countries engage in trade with one another is . . .
scarcity
opportunity costs
in order to generate tax revenue through tariffs
to gain a trade surplus
12
If there is less demand for housing, there will be . . .
increased demand for mortgages
less supply for mortgages
less demand for mortgages
increased supply for mortgages
13
Roth accounts are better than traditional accounts for young people because . . .
they often have little or no property taxes to pay
they can often improve their credit score this way
they‘re often paying little to no income tax
it can help to offset the costs of college
14
Free trade, compared to protectionism, tends to . . .
Provides more goods & services, but may hurt domestic industry
Provides fewer goods and services, but boosts domestic industry
Provides fewer goods & services, and may hurt domestic industry.
Provide more goods & services and boosts domestic industry
15
The main effect of inflation is . . .
it decreases the value of money
it decreases tax revenues in constant dollars
it increases tax revenues in constant dollars
it increases the value of money
16
Local taxes pay for things like . . .
Law enforcement, firefighters, and parks & recreation
law enforcement & Medicare
public welfare & local military defense
Social Security & firefighters
17
Which of these is NOT a factor of production?
Labor
Intellectual property
Entrepreneurship
Land/Natural Resources
18
Dollar Cost Averaging refers to . . .
investing a large sum once per year
investing small sums of money every single day
investing regular amounts of money at regular intervals
investing based on the average value of the dollar
19
401(k) are tax-advantaged retirement plans . . .
that are separate from employment
linked to your employer
that offer a tremendous range of investment options
that can be opened as joint accounts
20
Each year, cars & real estate are taxed on a percentage of their value, known as . . .
income tax
sales tax
property tax
real estate taxes
21
All of the following are examples of tax-advantaged accounts EXCEPT . . .
HELOC
401(k)
HSA
IRA
22
When one country has a smaller opportunity cost to create a product than another, it has a(n) . . .
absolute advantage
comparative advantage
significant advantage
international advantage
23
The equilibrium point occurs when . . .
consumers have rigorously shopped around to find the best price
producers and consumers agree on price
producers have engaged in the proper marketing research
producers and consumers possess perfect information regarding a product
24
The last and smallest of the numbers in the previous question refers to the amount that should be dedicated to . . .
Needs
Savings
Housing
Wants
25
The USSR in the decades after World War 2 is one of the best examples of . . .
a mixed economy
a market economy
a traditional economy
a command economy
26
Mutual funds are . . .
single stocks mutually owned by a group of people
single stocks & bonds mutually owned by a corporate entity
groups of stocks and/or bonds purchased as a single unit
always produce higher rates of return than a savings account
27
When countries blend government intervention in the economy & market forces, the economic system is . . .
traditional
market
command
mixed
28
Roth accounts use . . .
post-tax deductions
pre-tax deductions
29
Which of the following is NOT something the federal government taxes?
capital gains
property
inheritence
income
30
A good place to put your emergency fund would be . . .
in any savings & checking account
in an easily accessible account that pays more in interest than inflation
in cash, under a mattress
in Bitcoin or other cryptocurrency
31
When one country is more efficient than another at producing a particular product, it has a(n) . . .
significant advantage
international advantage
comparative advantage
absolute advantage
32
Which of the following is NOT an element of protectionism?
sales tax
tariffs
embargo
quotas
33
The suggested amount for an emergency fund is . . .
Enough to cover one to three months of basic expenses
Enough to cover one month of basic expenses
Enough to cover a year of basic expenses
Enough to cover three to six months of basic expenses
34
Mortgage points are optional and refer to . . .
The score a mortgage receives for how good of a deal it is
Money paid in advance to reduce the closing costs.
Money paid at closing to lower the interest rate of the mortgage
The score the interest rate generates
35
If inflation is running too high, to get it under control, the Fed might . . .
raise taxes
lower taxes
sell bonds
buy bonds
36
All of the following are true about Index funds EXCEPT . . .
they tend to have far lower fees than actively managed funds
they often outperform actively managed funds
they are designed to track some existing index, such as the S&P 500
there are limited options of index funds
37
Measures the percentage of people currently out of work and looking for a job.
Unemployment Rate
Inflation Rate
Employment Rate
GDP
38
A portfolio of mutual funds representing different markets offers diversification, . . .
which helps limit risk
which allows for earlier retirement
which helps reduce expenses
which helps boost returns
39
A market structure characterized by many companies producing similar, but differentiated products is . . .
perfect monopolism
monopolistic oligarchy
perfect competition
monopolistic competition
40
When two goods experience joint demand (when demand increases for one, it also increases for the other), they are . . .
wholesale goods
substitute goods
complementary goods
supplementary goods
41
The government agency in charge of consumer protection?
Securities & Exchange Commission
Federal Reserve Board
Federal Trade Commission
Food & Drug Administration
42
The main tool of the Fed is to adjust the interest rate charged to bank for overnight loans, called . . .
The T-Bill Rate
The Federal Funds Rate
The Overnight Bank Rate
Certificates of Deposit
43
Scarce resources require making careful choices, so when evaluating your choice you should always consider . . .
your competitor's strategy
the Road Less Taken
your profit motive
the opportunity cost
44
The European Union, among other things, is an example of a(n) . . .
international treaty organization
trade bloc
trade war
international trade surplus
45
Who does PMI protect?
The private mortgage insurance company
The bank that holds the mortgage
The buyers of the home
The sellers of the home
46
Actively managed funds . . .
have professional managers who actively buy and sell what’s in the fund
try to match the performance of common stock indexes
often have lower fees than index funds
often outperform index funds
47
If the business cycle is in an expansionary period, Congress & the President might . . .
increase taxes and/or increase spending
decrease taxes and/or increase spending
decrease taxes and/or decrease spending
increase taxes and/or decrease spending
48
What's a common budgeting breakdown?
40/30/30
50/25/25
60/20/20
50/30/20
49
Taxes on profit gained through investments are . . .
capital gains taxes
stock windfall taxes
property taxes
income taxes
50
The Federal Reserve board regulates . . .
the supply of money
stock prices
home prices
corporate bond yields
51
More specifically, a good place for your emergency fund would be . . .
a high-yield savings account
Mutual funds
Treasury Notes
corporate bonds
52
Traditional retirement accounts defer taxes until . . .
money grows within the account
money is withdrawn in retirement
money from the account is spent on discretionary items
money is deposited into the account
53
If unemployment is too high, the Fed might . . .
decrease the Federal Funds rate & sell bonds
decrease the Federal Funds Rate & buy bonds
increase the Federal Funds rate & buy bonds
increase the Federal Funds rate & sell bonds
54
PITI stands for . . .
Principal - Interest - Taxes - Insurance
Probably inspected, totally insured
Rapture, zest, & exhilaration
Paid - Inspected - Taxed - Insured
55
When would be a good time to pay down a mortgage aggressively by adding additional principal payments each month?
When inflation is lower - around 2%.
When expected ROI from investments > the interest on the mortgage.
When housing inventory is low.
When expected ROI from investments < the interest on the mortgage.
56
When countries blend government intervention in the economy & market forces, the economic system is . . .
command
market
mixed
traditional
57
A portion of a portfolio in bonds is helpful as you close in on retirement, since bonds . . .
offer variable returns that often outperform stocks
are highly tied to the mortgage market
offer fixed returns that do not fluctuate with the market
offer increasing returns over time
58
Original works of authorship in various mediums are protected under . . .
Public Domain
Patent Law
Copyright law
Trademark Law
59
Ken Fisher's quote: "Time in the market beats timing the market" means you should . . .
buy and hold your investments for the long haul
Anticipate the best time to buy and sell your investments and act on that
Always wear a watch when grocery shopping
buy investments when low and sell when high
60
IRAs are . . .
open to parents to save money for their children’s college expenses
retirement accounts through your employer
open to any individual to save & are not linked to an employer
retirement accounts available for employees of non-profits
61
A command economy emphasizes . . .
State control, advocating for greater economic inequality
A blend of state control & individual initiative
State control, but prioritizing the needs of individuals
State control & prioritizing the needs of the state
62
When countries engage in protectionism against each other, they are in a . . .
trade surplus
economic conflict
trade war
trade deficit
63
Traditional accounts use . . .
pre-tax deductions
post-tax deductions
64
Index funds are . . .
passively managed funds that track stocks that are constantly changing
actively managed funds that track stocks that are constantly changing
actively managed mutual funds that track a defined group of stocks or bonds
passively managed funds that track a defined group of stocks or bonds
65
The biggest expense in the North Carolina budget is . . .
military defense
education
public healthcare
law enforcement
66
A market economy allocates scarce resources according to . . .
Individual choices affected by the forces of supply & demand
The demands of oligarchs
Government five year plans
black market forces
67
The mathematics behind compound interest means you should start saving . . .
By the time you’re 30
By the time you’re 40
Once you are firmly established in your career
As soon as possible
68
When younger, it often makes sense to prefer riskier investments with higher returns, such as all EXCEPT . . .
bonds
an S&P 500 index fund
mutual funds
ETFs
69
If unemployment is more of a problem than inflation, the Federal government might . . .
decrease spending and/or increase taxes
Increase spending and/or cut taxes
decrease spending and/or cut taxes
increase spending and/or increase taxes
70
Local taxes are collected primarily through . . .
sales taxes
property taxes
income taxes
capital gains taxes
71
The intersection of the supply & demand curves is . . .
the Point of No Return
The equilibrium point
The balance point
The midpoint
72
The other tool of the Fed to regulate the money supply is to . . .
buy and sell individual stocks
increase and decrease farm subsidies
buy and sell bonds
increase and decrease taxation levels
73
The government agency in charge of ensuring clean air?
Environmental Protection Agency
Federal Trade Commission
Securities & Exchange Commission
Food & Drug Administration
74
Compared to investing in mutual funds, investing in single stocks . . .
offers more flexibility in choice, but requires more knowledge (and luck)
offers less flexibility in choice, and requires less knowledge (and luck)
offers less flexibility, but requires more knowledge (and luck)
offers more flexibility in choice, and requires less knowledge (and luck)
75
Monetary policy refers to . . .
regulating the business cycle by altering the supply of money
regulating the business cycle through taxation and spending policies
policy designed to regulate unicycles
policy designed to regulate the national debt
76
The basic problem of economics involves . . .
inflation
money
scarcity
labor
77
As you get closer to retirement age, however, consider . . .
moving investments into less risky options such as cryptocurrencies
moving investments into less risky options such as single stocks
moving investments to less risky options such as bonds
just working longer and not retiring
78
Social Security provides Americans with . . .
additional funds added directly to their IRAs
a modest income in retirement, but probably insufficient by itself
additional funds added directly to their 401k accounts
a significant income in retirement, probably sufficient for most people
79
Governments can take private property for public use in a process called . . .
Patent Domain
Caveat Emptor
Eminent Domain
Search & Seizure
80
When first getting an apartment, you should typically expect to be asked to put down . . .
First month's rent & a security deposit
First & last month's rent & a security deposit
The first month's rent
First & last month's rent
81
In North Carolina, due diligence money is . . .
paid to cover costs of home appraisal and home inspection
paid to the real estate attorney & real estate agents involved in the sale
paid to sellers and is non-refundable
paid to buyers and is refundable under certain conditions
82
The most common mortgage in the USA is . . .
a 15-year fixed rate mortgage
a 30-year fixed rate mortgage
an Adjustable Rate Mortgage at 5/1
an Adjustable Rate Mortgage at 6/6
83
Which company was primarily responsible for extending copyright protection from 14 years to 95?
Apple
AT&T
Coca-Cola
Disney
84
What does PMI stand for?
Popular Mechanics, Inc.
Popular Mortgage Insurance
Personal Mortgage Investments
Private Mortgage Insurance
85
The government agency in charge of dealing with insider trading?
Food & Drug Administration
Federal Trade Commission
Securities & Exchange Commission
Environmental Protection Agency
86
If investments fall significantly in value, younger people can . . .
wait out bad economic times, selling off what they need to
wait out bad economic times, and keep buying more at lower prices
always get a second job
sell their portfolios
87
The government agency in charge of dealing with an E. coli outbreak?
Food & Drug Administration
Federal Trade Commission
Securities & Exchange Commission
Environmental Protection Agency
88
Medicare & Social Security are both funded through a set of taxes known as . . .
FICO
FALCO
FACT
FICA
89
What's the standard downpayment that lets you avoid PMI?
10%
20%
3%
5%
90
State income taxes are collected largely through . . .
Income & sales taxes
Sales & property taxes
Tariffs & Capital Gains Taxes
Income and property taxes
91
The right to an exclusive period to benefit from an invention is protected by . . .
Trademark Laws
Patent Laws
Copyright laws
Creative Commons
92
If the business cycle is in a contractionary period, the Federal Reserve Board might . . .
Raise the Federal Funds Rate and sell Treasuries (bonds)
Raise the Federal Funds Rate and buy Treasuries (bonds)
Lower the Federal Funds Rate and buy Treasuries (bonds)
Lower the Federal Funds Rate and sell Treasuries (Bonds)
93
A defined benefit plan pays someone every month in retirement until death, often called . . .
a HYSA
a 401(k)
a 403(b)
a pension
94
The stages of the business cycle are . . .
bust & boom
up & down
expansion --> peak --> contraction --> trough
expansion & contraction
95
The driving force behind mixed (mostly) and market (even more) economies is . . .
profit motive
a steady return on investment
profit aversion
fairness & inclusion
96
Creations of the mind are known as . . .
Intellectual Property
Trademarks
Patent Laws
Copyright Laws
97
Market economies tend to have a trade-off of . . .
lower inflation, but higher unemployment
fewer goods & services, but more equality
more goods & services, but less equality
higher inflation, but lower unemployment
98
Fiscal policy refers to . . .
regulating the business cycle by altering the supply of money
policy designed to regulate ocean life
regulating the business cycle through taxation and spending policies
policy designed to regulate the national debt
99
If Asheville outlawed all existing AirBNBs in city limits, what would happen to the supply of long-term rental units?
The supply curve would shift right.
The price would move left along the existing supply curve line.
The price would move right along the existing supply curve line.
The supply curve would shift left.
100
Fiscal policy is controlled by . . .
The Securities & Exchange Commission
The Federal Reserve Board
The Stock Exchanges
The Executive and Legislative branches of government

EPF - Cumulative Quiz Exam Flashcards | StudBud