EPF 2015/2016 Final Review

Question 1

A warranty, also called a guarantee, is a statement about a product's qualities or performance

Accepted Answer

True

Question 2

To determine taxable income, subtract adjustments, deductions, and exemptions from gross income

Accepted Answer

True

Question 3

Automobile is a type of insurance

Accepted Answer

True

Question 4

Insurers charge LESS to drivers that have a higher probability of getting into an accident.

Accepted Answer

False

Question 5

is a business that agrees to pay the cost of potential losses in exchange for payments

Accepted Answer

Insurer

Question 6

A stockbroker works for a brokerage firm.

Accepted Answer

True

Question 7

Proportional or flat taxes take the same percentage regardless of the amount of tax is imposed.

Accepted Answer

True

Question 8

Risk is the change that an investment's value will decrease on their investment

Accepted Answer

True

Question 9

Which of the following is NOT considered a short-term need for investing/saving?

Accepted Answer

Home

Question 10

If you are single with no dependents, you may use the 1040EZ tax form.

Accepted Answer

True

Question 11

An endorsement is a written amendment to a mortgage loan.

Accepted Answer

False

Question 12

Variable expenses are costs that vary in amount and type, depending on events and choices.

Accepted Answer

True

Question 13

A fee usually paid at regular intervals to an insurer for an insurance policy

Accepted Answer

Premium

Question 14

A budget is a spending and saving plan based on your expected income and expenses.

Accepted Answer

True

Question 15

A written insurance contract

Accepted Answer

Policy

Question 16

Professional investment planners are called financial advisers.

Accepted Answer

True

Question 17

is an amt you may subtract from your income for each person who depends on your income to live

Accepted Answer

Exemption

Question 18

A contract is a legally enforceable agreement between two or more parties to do or not do

Accepted Answer

True

Question 19

Willful failure to pay taxes

Accepted Answer

Tax evasion

Question 20

is automobile insurance that protects your own car against damage from accidents

Accepted Answer

Collision coverage

Question 21

The difference between assets and liabilities is known as your

Accepted Answer

Net Worth

Question 22

is an orderly program for spending, saving, and investing the money you earn.

Accepted Answer

Financial plan

Question 23

Income taxes were levied starting in the mid - 1800s to finance many gatherings and parties.

Accepted Answer

False

Question 24

All individual taxpayers use one of three basic forms: 1040EZ, 1040B, and 1040

Accepted Answer

False

Question 25

A renter's policy is insurance that protects renters from property and liability risks.

Accepted Answer

True

Question 26

Amounts of money owed to others are called

Accepted Answer

Liabilities

Question 27

Progressive taxes take a larger share as income grows

Accepted Answer

True

Question 28

Which of the following is NOT considered in a contract

Accepted Answer

Paper form

Question 29

A list of items of value that a person owns is called

Accepted Answer

Assets

Question 30

Money paid to support a former spouse is called

Accepted Answer

Alimony

Question 31

Collision automobile coverage repairs damage to your own vehicle when you are at fault

Accepted Answer

True

Question 32

Risk is the chance of financial loss from perils to people or property.

Accepted Answer

True

Question 33

Investing is the use of savings to earn a financial loss.

Accepted Answer

False

Question 34

chances of loss that occur when your errors or actions results in bodily or property damages

Accepted Answer

Liability risks

Question 35

Risk Management is an organized strategy for controlling financial loss from pure risks.

Accepted Answer

True

Question 36

Fixed expenses are costs you are obligated to pay at different times

Accepted Answer

False

Question 37

An examination of a tax return by the IRS

Accepted Answer

Audit

Question 38

A Certification of deposit (CD), or time deposit, is a deposit that earns a fixed interest rate

Accepted Answer

False

Question 39

Opening a checking account is a simple investment and great for just starting out.

Accepted Answer

True

Question 40

Tax brackets are income ranges to which different tax rates apply

Accepted Answer

True

Question 41

The government collects money, or revenue, from citizens and businesses to spend by Congress

Accepted Answer

True

Question 42

The federal government collects taxes to finance various public services such as schools

Accepted Answer

True

Question 43

Regressive taxes take a smaller share as income grows

Accepted Answer

True

Question 44

Money paid to a former spouse for support of dependent children is called

Accepted Answer

Child support

Question 45

method for spreading individual risk among a large group of people to make losses affordable.

Accepted Answer

Insurance

Question 46

All states require minimum liability insurance coverage for owners and operators of vehicles.

Accepted Answer

True

Question 47

A co-signer is a person who pays the note regardless if the maker fails to pay

Accepted Answer

False

EPF 2015/2016 Final Review

Questions 47

EPF 2015/2016 Final Review

Questions 47