Reference no: EM132820048
1. Roth IRAs were created by:Investment companies.Presidential executive order.Congress.Mutual fund companies.
2. What occurs when you are deceived into believing that you will receive something that does not actually exist?
Ponzi scheme.
Pyramid scheme.
Fraud.
Theft.
3. Which of the following is an example of how identity theft might happen?
Hacking into your credit card or bank account.
Going through your garbage looking for receipts and credit card offers.
All of these answer choices are correct.
Stealing your wallet or purse.
4. Which of the following refers to no tax assessed on the earnings in the account in the year that the earnings are received?
Tax-deferred earnings.
After-tax basis.
Traditional IRA withdrawal.
Pretax basis.
5. For which of the following savings goals would a U.S. savings bond be most useful?
Both starting an emergency fund and funding a short-term goal.
Starting an emergency fund.
Building a child's college education fund.
Funding a short-term goal.
6. Which of the following refers to the maximum amount in 2018 that you can contribute annually to a Roth IRA?
$5,500.
$2,500.
$7,500.
$10,000.
7. Which of the following statements regarding the taxation of U.S. savings bonds is correct?
If savings bonds' proceeds are used to pay for qualifying higher education expenses, such as college tuition and fees, the interest is only taxed by the state government and not the federal government.
Interest on I bonds and EE bonds is not taxed by the federal government.
Interest on I bonds and EE bonds is taxed by the federal government when the bonds are redeemed.
Interest on I bonds is not taxable but interest on EE bonds is taxable.
8. Roth IRA accounts are unique because:
investment earnings receive unique tax treatment.
earnings are taxed at the lower capital gains tax rate.
they can only hold a limited number of investments.
they are no different than brokerage accounts or 401(k) plans.
9. Which of the following is not a strategy to protect against identity theft?
Reconcile your monthly account information to make sure there are not any unauthorized transactions.
Never respond to unsolicited e-mails asking for credit cards, passwords, or other financial or security information.
Always shred financial statements and receipts that show account-related information.
Never use credit cards online since nearly all identity theft occurs online.
10. An emancipated minor may:
I.buy property.
II.sell property.
III.not open a financial account until he or she turns 21 years old.
II and III only.
III only.
I and II only.
I only.