Reference no: EM13820254
1. What is the net amount of income, after allowable deductions, on which income tax is computed?
- Earned income
- Investment income
- Taxable income
- Passive income
2. What tax is based on the value of land and buildings; and, is a major source of revenue for local governments?
- Excise tax
- Real estate property tax
- Estate tax
- Sales tax
3. All of these are motor vehicle insurance premium factors except for:
- Vehicle type
- Rating territory
- Driver classification
- Income tax bracket
4. More than 9 out of 10 homeowners have property insurance. For renters, it is only about:
5. Basic health insurance covers all of the following except for:
- Hospital expense
- Major medical expense
- Surgical expense
- Physician expense
6. What can an individual do to reduce healthcare costs?
- Eat a balanced diet and keep your weight under control
- Avoid smoking and do not drink to excess
- Get sufficient rest, relaxation, and exercise
- All of the above
7. Which method of estimating your life insurance requirements assumes that you have no children?
- The Easy Method
- The DINK Method
- The Non-Working Spouse Method
- The Family Need Method
8. Which type of life insurance policy will never develop a cash value?
- Variable Life policy
- Whole Life policy
- Term Life policy
- Universal Life policy
9. Opportunity cost can be defined as
- A trade-off of a decision
- Failing at goals
- Creating financial wisdom
- The amount paid for taxes when a purchase is made
10. What are some examples of this Five C category: Conditions?
- Unemployment
- Recession
- Credit rating
- All of the above
11. The periodic charge for the use of credit is
- A line of credit
- Interest
- Grace period
- Principal
12. As people approach retirement, which of the following holds true for most?
- Their choices of investments do not change.
- They choose more conservative investments.
- They choose more risky investments.
- They move all their money into certificates of deposit.