Question 1

Which of the following is an attribute of a certificate of deposit?

Accepted Answer

A)  Very liquid. 
B)  Better returns. 
C)  Very flexible. 
D)  Low returns. 
A)  Very liquid. 
B)  Better returns. 
C)  Very flexible. 
D)  Low returns.

Question 2

Which of the following is a common financial emergency?

Accepted Answer

A)  Major car repairs. 
B)  Major medical expenses. 
C)  Major home repairs. 
D)  All of these answer choices are correct. 
A)  Major car repairs. 
B)  Major medical expenses. 
C)  Major home repairs. 
D)  All of these answer choices are correct.

Question 3

Which of the following is an example of a college savings plan?

Accepted Answer

A)  Kiddie tax. 
B)  529 plan. 
C)  UTMA. 
D)  Custodial IRA. 
A)  Kiddie tax. 
B)  529 plan. 
C)  UTMA. 
D)  Custodial IRA.

Question 4

Which type of risk refers to the possibility that a company in which you invest will be forced to close?

Accepted Answer

A)  Inflation risk. 
B)  Business risk. 
C)  Interest rate risk. 
D)  Liquidity risk. 
A)  Inflation risk. 
B)  Business risk. 
C)  Interest rate risk. 
D)  Liquidity risk.

Question 5

Which of the following is an inappropriate option for housing your emergency fund and other short-term savings?

Accepted Answer

A)  Somewhere in your house. 
B)  Savings account. 
C)  Money market account. 
D)  Certificate of deposit. 
A)  Somewhere in your house. 
B)  Savings account. 
C)  Money market account. 
D)  Certificate of deposit.

Question 6

Which of the following is an appropriate use of an emergency fund?

Accepted Answer

A)  Paying for your yearly vacation. 
B)  Buying a new pair of shoes. 
C)  Addressing unexpected gaps in your budget. 
D)  Buying holiday gifts. 
A)  Paying for your yearly vacation. 
B)  Buying a new pair of shoes. 
C)  Addressing unexpected gaps in your budget. 
D)  Buying holiday gifts.

Question 7

Which of the following is an example of unearned income?

Accepted Answer

A)  Interest. 
B)  Dividends. 
C)  Interest from savings. 
D)  All of these answer choices are correct. 
A)  Interest. 
B)  Dividends. 
C)  Interest from savings. 
D)  All of these answer choices are correct.

Question 8

Bernie Madoff committed what type of financial fraud?

Accepted Answer

A)  Ponzi scheme. 
B)  Pyramid scheme. 
C)  Telemarketing fraud. 
D)  Phishing scheme. 
A)  Ponzi scheme. 
B)  Pyramid scheme. 
C)  Telemarketing fraud. 
D)  Phishing scheme.

Question 9

The most common forms of identity theft include which of the following?

Accepted Answer

A)  Social identity theft. 
B)  Child identity theft. 
C)  Tax identity theft. 
D)  All of these answer choices are correct. 
A)  Social identity theft. 
B)  Child identity theft. 
C)  Tax identity theft. 
D)  All of these answer choices are correct.

Question 10

Which of the following refers to a type of withdrawal available for a Roth IRA?

Accepted Answer

A)  A withdrawal of principal occurring any time after the account was initially funded. 
B)  A qualifying withdrawal of principal and earnings. 
C)  A nonqualifying withdrawal of principal and earnings. 
D)  All of these answer choices are correct. 
A)  A withdrawal of principal occurring any time after the account was initially funded. 
B)  A qualifying withdrawal of principal and earnings. 
C)  A nonqualifying withdrawal of principal and earnings. 
D)  All of these answer choices are correct.

Question 11

Which of the following is an advantage of U.S. savings bonds?

Accepted Answer

A)  Very safe. 
B)  Easy to buy. 
C)  Easy to redeem. 
D)  All of these answer choices are correct. 
A)  Very safe. 
B)  Easy to buy. 
C)  Easy to redeem. 
D)  All of these answer choices are correct.

Question 12

Lashaun took an early withdrawal of $6,200 from a college savings plan and did not use the money for qualified educational expenses. What amount of penalty will she pay on the early withdrawal?

Accepted Answer

A)  $0. 
B)  $310. 
C)  $620. 
D)  $740. 
A)  $0. 
B)  $310. 
C)  $620. 
D)  $740.

Question 13

Which of the following is used to calculate your emergency fund ratio?

Accepted Answer

A)  Monthly living expenses divided by monetary assets. 
B)  Monetary assets divided by monthly living expenses. 
C)  Annual living expenses divided by monetary assets. 
D)  Monetary assets divided by annual living expenses. 
A)  Monthly living expenses divided by monetary assets. 
B)  Monetary assets divided by monthly living expenses. 
C)  Annual living expenses divided by monetary assets. 
D)  Monetary assets divided by annual living expenses.

Question 14

Individuals who have a very low risk tolerance would want to have how many months of emergency savings in place?

Accepted Answer

A)  2 months. 
B)  4 months. 
C)  6 months. 
D)  Emergency saving is not needed. 
A)  2 months. 
B)  4 months. 
C)  6 months. 
D)  Emergency saving is not needed.

Question 15

Which of the following refers to the interest rate on EE bonds?

Accepted Answer

A)  Variable. 
B)  Fixed. 
C)  Based on inflation. 
D)  3%. 
A)  Variable. 
B)  Fixed. 
C)  Based on inflation. 
D)  3%.

Question 16

When are earnings from UGMA and UTMA accounts taxed?

Accepted Answer

A)  Upon withdrawal. 
B)  In the year they are earned. 
C)  Earnings are not taxed. 
D)  When the child is no longer a minor. 
A)  Upon withdrawal. 
B)  In the year they are earned. 
C)  Earnings are not taxed. 
D)  When the child is no longer a minor.

Question 17

Which of the following refers to a Roth IRA?

Accepted Answer

A)  Receive an income tax deduction. 
B)  Pay less tax today. 
C)  Pay taxes on money taken out of the account in the future. 
D)  No income tax deduction. 
A)  Receive an income tax deduction. 
B)  Pay less tax today. 
C)  Pay taxes on money taken out of the account in the future. 
D)  No income tax deduction.

Question 18

Which of the following is an example of how identity theft might happen?

Accepted Answer

A)  Stealing your wallet or purse. 
B)  Going through your garbage looking for receipts and credit card offers. 
C)  Hacking into your credit card or bank account. 
D)  All of these answer choices are correct. 
A)  Stealing your wallet or purse. 
B)  Going through your garbage looking for receipts and credit card offers. 
C)  Hacking into your credit card or bank account. 
D)  All of these answer choices are correct.

Question 19

Which of the following is an advantage of U.S. savings bonds?

Accepted Answer

A)  Tax advantaged. 
B)  Easy to buy. 
C)  Easy to redeem. 
D)  All of these answer choices are correct. 
A)  Tax advantaged. 
B)  Easy to buy. 
C)  Easy to redeem. 
D)  All of these answer choices are correct.

Question 20

Which of the following is an example of a qualified distribution from a Roth IRA?

Accepted Answer

A)  At 59½ years of age or older, only. 
B)  The Roth IRA account has been open for at least 5 years, only. 
C)  Both at 59½ years of age or older and the Roth IRA account has been open for at least 5 years. 
D)  At 45 years of age. 
A)  At 59½ years of age or older, only. 
B)  The Roth IRA account has been open for at least 5 years, only. 
C)  Both at 59½ years of age or older and the Roth IRA account has been open for at least 5 years. 
D)  At 45 years of age.

Which of the following is an attribute of a certificate of deposit?

Which of the following is a common financial emergency?

Which of the following is an example of a college savings plan?

Which type of risk refers to the possibility that a company in which you invest will be forced to close?

Which of the following is an inappropriate option for housing your emergency fund and other short-term savings?

Which of the following is an appropriate use of an emergency fund?

Which of the following is an example of unearned income?

Bernie Madoff committed what type of financial fraud?

The most common forms of identity theft include which of the following?

Which of the following refers to a type of withdrawal available for a Roth IRA?

Which of the following is an advantage of U.S. savings bonds?

Lashaun took an early withdrawal of $6,200 from a college savings plan and did not use the money for qualified educational expenses. What amount of penalty will she pay on the early withdrawal?

Which of the following is used to calculate your emergency fund ratio?

Individuals who have a very low risk tolerance would want to have how many months of emergency savings in place?

Which of the following refers to the interest rate on EE bonds?

When are earnings from UGMA and UTMA accounts taxed?

Which of the following refers to a Roth IRA?

Which of the following is an example of how identity theft might happen?

Which of the following is an advantage of U.S. savings bonds?

Which of the following is an example of a qualified distribution from a Roth IRA?

Beginning Your Financial Journey: the Interior Finance Point of View

Tools for Your Financial Journey

Earnings and Income: the Building Blocks of Your Financial Journey

Personal Taxation

Checking Accounts, Credit Scores, and Credit Cards

Loans and Housing Decisions

Investments

Risk Management: the Role of Insurance

Planning for the Future: Retirement and Estate Planning

Filters

Exam 7: The Foundation of Savings

Which of the following is an attribute of a certificate of deposit?

Which of the following is a common financial emergency?

Which of the following is an example of a college savings plan?

Which type of risk refers to the possibility that a company in which you invest will be forced to close?

Which of the following is an inappropriate option for housing your emergency fund and other short-term savings?

Which of the following is an appropriate use of an emergency fund?

Which of the following is an example of unearned income?

Bernie Madoff committed what type of financial fraud?

The most common forms of identity theft include which of the following?

Which of the following refers to a type of withdrawal available for a Roth IRA?

Which of the following is an advantage of U.S. savings bonds?

Lashaun took an early withdrawal of $6,200 from a college savings plan and did not use the money for qualified educational expenses. What amount of penalty will she pay on the early withdrawal?

Which of the following is used to calculate your emergency fund ratio?

Individuals who have a very low risk tolerance would want to have how many months of emergency savings in place?

Which of the following refers to the interest rate on EE bonds?

When are earnings from UGMA and UTMA accounts taxed?

Which of the following refers to a Roth IRA?

Which of the following is an example of how identity theft might happen?

Which of the following is an advantage of U.S. savings bonds?

Which of the following is an example of a qualified distribution from a Roth IRA?

Beginning Your Financial Journey: the Interior Finance Point of View

Tools for Your Financial Journey

Earnings and Income: the Building Blocks of Your Financial Journey

Personal Taxation

Checking Accounts, Credit Scores, and Credit Cards

Loans and Housing Decisions

Investments

Risk Management: the Role of Insurance

Planning for the Future: Retirement and Estate Planning

Filters