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

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

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

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.

Which of the following is necessary for successful budgeting?

The ability to adjust spending to money available

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

Discretionary/Disposable Income

Financial plans need to:

be changed during different stages in life

An important consideration when saving money for emergencies is:

high degree of safety and liquidity

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

earnings over a lifetime of work.

Can Cathy withdraw money from her IRA savings account?

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

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

better off financially the person is.

Financial planning is important because it helps you to:

reach financial goals and protect your assets

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

receive an additional tax exemption because of the baby.

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MoneyPower: Money Management

17 termsStudBud Administration84 plays

Flashcards17 cardsFPractice quizPHost liveL

Questions 17

Answers

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

MoneyPower: Money Management Flashcards | StudBud

MoneyPower: Money Management

17 termsStudBud Administration84 plays

MoneyPower: Money Management

Flashcards17 cardsFPractice quizPHost liveL

Questions 17

Answers

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