Reference no: EM133086006
1.Which of the following is not offered by all three types of medical coverage? Multiple Choice
a. A basic hospital policy for hospital costs such as room, board and ancillary services
b. Nonsurgical costs whether in or out of the hospital
c. All of these are offered by all three types of medical coverage
d. A basic surgical policy to pay for the surgeon's costs, whether in or out of the hospital
e. None of these are offered by all three types of medical coverage
2. Lucy expects taxable revenues of $68,000 in the current year. Her adjustments to revenues are projected to be $3,000 this year. Her deductions and exemptions are projected at $23,000. There is no state income tax where Lucy resides. What is her federal tax under an assumed 20% average tax bracket? Multiple Choice
a. $7,300.
b. $9,500.
c. None of the choices are correct.
d. $10,600.
e. $8,400.
3. Which of the following is the second step of the retirement planning process? Multiple Choice
a. Familiarize yourself with retirement issues.
b. Develop goals.
c. None of the choices are correct.
d. Analyze retirement risks.
e. Become knowledgeable about retirement structures.
4. Real property includes: Multiple Choice
a. All of the choices are correct.
b. None of the choices are correct.
c. Land
d. Structures that are affixed to land
e. Assets that are not affixed to land
5. A gift must be less than what amount per person to avoid affecting the estate tax exemption? Multiple Choice
a. $14,000.
b. $10,000.
c. $10,500.
d. None of the choices are correct.
e. $14,500.
6. In which of the following situations is a reappraisal of retirement projections called for? Multiple Choice
a. When circumstances change significantly and upon retirement
b. When actual resources differ substantially from projected ones
c. When circumstances change significantly
d. Upon retirement
e. When actual resources differ substantially from projected ones and when circumstances change significantly
7. What is a load fund? Multiple Choice
a. A fund that provides a sales commission to the individual or brokerage firm that markets the fund and a fund where the management company does not charge a load that they retain
b. A fund where the management company does not charge a load that they retain
c. A fund that that does not offer sales commissions to the marketers of the funds and a fund that provides a sales commission to the individual or brokerage firm that markets the fund
d. A fund that that does not offer sales commissions to the marketers of the funds
e. A fund that provides a sales commission to the individual or brokerage firm that markets the fund
8. By which of the following steps in the financial planning process do we ask "Have you analyzed all areas that you intended to?" Multiple Choice
a. Establishing the scope of the activity.
b. Compiling and analyzing the data.
c. None of the choices are correct.
d. Gathering the data and identifying goals.
e. All of the choices are correct.
9. Which of the following is not a type of income from investment activities? Multiple Choice
a. Medium-term capital gains and losses.
b. All of these are types of income from investment activities.
c. Short-term capital gain and losses.
d. Dividend.
e. Ordinary.
10. Which of the following is an example of the tax impact on risk management? Multiple Choice
a. Taxes influence the timing of transactions and preparation for payment of sums due.
b. There is often a clear preference for tax-deductible employee health and life insurance.
c. The calculation of the cost of borrowing is done on an after-tax basis.
d. The calculation of returns is often done on an after-tax basis.
e. None of the choices are correct.