02.10 Module Two. Tax, investor, payments. Exam.

If an investor possesses a portfolio heavily concentrated in Certificates of Deposit, a financial advisor would most likely suggest which of the following aggressive investments to diversify the portfolio?

Which of these is an example of indirect tax?

Compared to earning a four-year degree, a technical certification allows you to

Jonah has a high-paying job and would like to start saving for retirement. He has evaluated his budget in order to add savings to his expenses. He has a moderate amount of debt, and he spends a great deal on housing. His utilities, transportation, and health, expenses are fixed, and he spends little on recreation or eating out. Which action is he most likely to take?

Which of the following actions would likely raise homeowner's insurance premiums?

Gerald buys name brand pain relief medication even though he knows the generic store brand, with identical contents, costs two dollars less. Gerald's decision seems to be less driven by price and more driven by

Johann maintains a $75,000 insurance policy on his boat. He pays $50 per month in premiums and his deductible is $2,500. If he is involved in an accident and makes a claim of $3,000 on the policy, how much will he have to pay?

"Tax bracket" is a term associated with which type of taxation?

What will happen if Jonathan is habitually late on loan payments?

Austin earns $18,000 per year. His earnings put him in the 15% tax rate. What is his tax owed?

Your friend's job pays $10 per hour, and he works 40 hours per week. His tax rate is 20 percent. Assuming he works 50 weeks of the year, his yearly gross income is

Calliope is in her mid-30s and wants to start saving for retirement. She wants to invest a portion of her income, but she's wary of high-risk options. How should she best allocate her investment funds?

Patrick has $12,000 saved for medical school from gifts and summer jobs. Because the cost of college has risen each year, Patrick knows he needs a savings account that will help him meet these increases. In the 10 remaining years before he receives his medical degree, which of the following would most help Patrick to meet these increases?

The purple section (C) for a nearly-retired investor would most likely represent

To what does tax progressivity refer?

Which of these investments may pay dividends?

Why might buyers be more inclined to purchase a product if it is listed for sale at $49.99, rather than $50?

The rate of return being offered by banks on money market accounts is 3% and increasing. Which of the following might cause this to happen?

You earn $50,000 per year, and the federal tax rate is 10 percent. Your gross income is

Edward paid an annual premium of $2,000 in total coverage for his homeowner's insurance, including $250,000 in damage coverage and $250,000 in liability coverage. Six years into his policy, a tree fell on Edward's home and caused $50,000 worth of damage. Edward's insurance company paid the claim. Did the cost of the annual premiums outweigh the benefit of transferring the risk to the insurance company?

Which type of credit is usually used for cars, mortgages, and student loans?

Making a down payment on a loan often

Samuel needs to decrease his expenses. To which category should he make cuts first?

A young investor would be best served by which kind of portfolio?

What is likely to happen if a borrower misses a payment on a credit card account?

If an investor possesses a portfolio heavily concentrated in bank checking accounts, a financial advisor would most likely suggest which of the following aggressive investments to diversify the portfolio?

If the Federal Reserve raises the federal funds rate, what will likely happen to certificates of deposit offered by banks?

Which of these are loans to businesses or governments?

Which type of credit involves a set limit based on what a consumer pays up front?

A young investor would best plan to have the blue section (D) represent

Anna's job pays $10 per hour, and she works 40 hours per week. Her tax rate is 20 percent. Assuming she works 50 weeks per year, the amount she will pay in taxes is

A common marketing strategy used by retailers to make products appear more attractive is to list a $100 item for

Making a down payment reduces the

Jeanine paid an annual premium of $1,200 in total liability coverage for her car, including up to $400,000 in bodily injury coverage and $100,000 in property damage coverage. Twelve years into her policy, Jeanine caused an accident that resulted in the other driver claiming $40,000 in medical costs and $15,000 in car damage. Jeanine's insurance company paid the claim. Did the cost of the benefit of transferring the risk to the insurance company outweigh the cost of the premium?

Who would pay the most as a percentage of income under a progressive tax?

Which tax uses the same rate for all income levels?

Laurent saves money from his lawn service to buy a new $20,000 mower and trailer. He would like to buy the new equipment as soon as possible but only has $12,000 in his simple interest savings account. To reach his goal sooner, Laurent should

Chloe's history of non-payment of monthly utility bills will probably cause a lender to