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Question 1. (TCO 2) In order to best compare the earnings for different savings plans, one can refer to each plan's discounted present value. compounded rate of return. net present value. annual percentage yield. after-tax rate of return. Question 2. (TCO 2) Interest earnings of $2,400 from a taxable investment for a person in a 28% tax bracket would result in after-tax earnings of Question 3.3. (TCO 2) _____ can reduce taxable income. Portfolio income Tax credits Exclusions
Passive income Earned income
Question 4.4. (TCO 2) Whenever an individual takes on a personal effort and receives money, this is reported as _____ income. passive earned portfolio excluded capital gains Question 5.5. (TCO 2) George Washburn had earnings from his salary of $44,000, interest on savings of $800, a contribution to a traditional individual retirement account of $2,000, and dividends from mutual funds of $600. George's adjusted income (AGI) would be $43,400. $44,000. $45,400. $42,000. $42,800.
Question 6.6. (TCO 2) _____ can be calculated as a result of various items being subtracted from gross income, such as individual retirement account contributions and alimony payments. Adjusted gross income Taxable income Earned income
Question 7.7. (TCO 2) When filing your taxes, a set amount on which no taxes are paid is called _____.
an earned tax credit
the standard deduction
Question 8.8. (TCO 2) Taxes owed can be reduced through _____.
the standard deduction
a tax credit
an itemized deduction
Question 9.9. (TCO 2) _____ would qualify a person for an exemption when computing taxable income.
A tax shelter
Question 10.10. (TCO 2) Generally, the way most people pay federal income tax is by
paying the total amount owed by April 15.
filing quarterly tax payments.
having amounts withheld from income.
earning tax credits for various deductions.
Question 11.11. (TCO 2) If you expect interest rates will decline over the next few months, you should use a(n) _____ to maximize your earnings.
regular savings account
interest-bearing checking account
5-year certificate of deposit
6-month certificate of deposit
money market fund
Question 12.12. (TCO 2) An example of a _____ deposit is a checking account.
Question 13.13. (TCO 2) When profits are generated by a mutual savings bank, they will go to the
community in which it operates.
Question 14.14. (TCO 2) _____ are the major products offered by investment companies.
Interest-bearing checking accounts
Credit card accounts
Question 15.15. (TCO 2) One of the characteristics of a certificate of deposit is that it can have
high interest-rate risk.
low safety for savers.
a variable rate of return.
no minimum deposit amount.
Published on Dec 2, 2016