Question 1

How much earned income do you need to meet the requirement for a Roth IRA?

Accepted Answer

A)  Earned income is not needed. 
B)  Earned income that is equal to or greater than the amount you contribute to the Roth IRA. 
C)  $500 in earned income. 
D)  $10,000 in earned income. 
A)  Earned income is not needed. 
B)  Earned income that is equal to or greater than the amount you contribute to the Roth IRA. 
C)  $500 in earned income. 
D)  $10,000 in earned income.

Question 2

The interest paid on U.S. savings bonds is usually ________ compared with savings rates paid by banks and credit unions.

Accepted Answer

A)  lower 
B)  higher 
C)  twice as much 
D)  the same 
A)  lower 
B)  higher 
C)  twice as much 
D)  the same

Question 3

Which of the following refers to a specific type of account set up by states that allows individuals to set money aside for a designated beneficiary's higher education expenses?

Accepted Answer

A)  Kiddie tax. 
B)  College savings plans. 
C)  UTMA. 
D)  Custodial IRA. 
A)  Kiddie tax. 
B)  College savings plans. 
C)  UTMA. 
D)  Custodial IRA.

Question 4

With a Roth IRA, when can you withdraw your principal without having to pay taxes on the withdrawal?

Accepted Answer

A)  Any time. 
B)  After 1 year. 
C)  After 5 years. 
D)  After 10 years. 
A)  Any time. 
B)  After 1 year. 
C)  After 5 years. 
D)  After 10 years.

Question 5

Which of the following can be held in a Uniform Transfers to Minors Act (UTMA) account?

Accepted Answer

A)  Bank accounts. 
B)  Investments. 
C)  Insurance policies. 
D)  Any type of property including real estate. 
A)  Bank accounts. 
B)  Investments. 
C)  Insurance policies. 
D)  Any type of property including real estate.

Question 6

Which of the following seals your credit reports so that no new accounts can be opened?

Accepted Answer

A)  Credit freeze. 
B)  Credit check. 
C)  Credit monitoring. 
D)  Credit thaw. 
A)  Credit freeze. 
B)  Credit check. 
C)  Credit monitoring. 
D)  Credit thaw.

Question 7

How much is the total loss associated with identity theft per year?

Accepted Answer

A)  $2 billion. 
B)  $5 billion. 
C)  $10 billion. 
D)  More than $13 billion. 
A)  $2 billion. 
B)  $5 billion. 
C)  $10 billion. 
D)  More than $13 billion.

Question 8

Which of the following could help you imagine what the future would look like in real terms?

Accepted Answer

A)  Opportunity cost. 
B)  Savings. 
C)  Visualization techniques. 
D)  Investing. 
A)  Opportunity cost. 
B)  Savings. 
C)  Visualization techniques. 
D)  Investing.

Question 9

Which of the following refers to no tax assessed on the earnings in the account in the year that the earnings are received?

Accepted Answer

A)  Tax-deferred earnings. 
B)  Pretax basis. 
C)  Traditional IRA withdrawal. 
D)  After-tax basis. 
A)  Tax-deferred earnings. 
B)  Pretax basis. 
C)  Traditional IRA withdrawal. 
D)  After-tax basis.

Question 10

Which of the following refers to the maximum amount in 2018 that you can contribute annually to a Roth IRA?

Accepted Answer

A)  $2,500. 
B)  $5,500. 
C)  $7,500. 
D)  $10,000. 
A)  $2,500. 
B)  $5,500. 
C)  $7,500. 
D)  $10,000.

Question 11

Which of the following refers to a traditional individual retirement account (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)  All of these answer choices are correct. 
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)  All of these answer choices are correct.

Question 12

Which of the following could you do to visualize building an emergency fund?

Accepted Answer

A)  Identify some emergencies that may occur. 
B)  Consider how these emergencies would affect you financially. 
C)  Think about how these emergencies would financially affect those you love. 
D)  All of these answer choices are correct. 
A)  Identify some emergencies that may occur. 
B)  Consider how these emergencies would affect you financially. 
C)  Think about how these emergencies would financially affect those you love. 
D)  All of these answer choices are correct.

Question 13

What is the minimum amount to purchase I bonds using your federal income tax refund?

Accepted Answer

A)  $25. 
B)  $50. 
C)  $75. 
D)  There is no minimum amount. 
A)  $25. 
B)  $50. 
C)  $75. 
D)  There is no minimum amount.

Question 14

What is the median length of time it takes a working adult who becomes unemployed to find another job?

Accepted Answer

A)  1 month. 
B)  3 months. 
C)  5 months. 
D)  7 months. 
A)  1 month. 
B)  3 months. 
C)  5 months. 
D)  7 months.

Question 15

Which of the following is provided by a college savings plan?

Accepted Answer

A)  Tax-deferred growth on earnings, only. 
B)  Tax-free distributions if the money is used for qualified educational expenses such as tuition, fees, books, equipment, housing, meal plans, and other necessary expenses, only. 
C)  Both tax-deferred growth on earnings and tax-free distributions if the money is used for qualified educational expenses such as tuition, fees, books, equipment, housing, meal plans, and other necessary expenses. 
D)  Taxed at the child's marginal tax bracket. 
A)  Tax-deferred growth on earnings, only. 
B)  Tax-free distributions if the money is used for qualified educational expenses such as tuition, fees, books, equipment, housing, meal plans, and other necessary expenses, only. 
C)  Both tax-deferred growth on earnings and tax-free distributions if the money is used for qualified educational expenses such as tuition, fees, books, equipment, housing, meal plans, and other necessary expenses. 
D)  Taxed at the child's marginal tax bracket.

Question 16

In 2018, your adjusted gross income must be less than what amount to contribute to a Roth IRA if you are single?

Accepted Answer

A)  $75,000. 
B)  $98,000. 
C)  $110,000. 
D)  $120,000. 
A)  $75,000. 
B)  $98,000. 
C)  $110,000. 
D)  $120,000.

Question 17

How much is the tax penalty for early withdrawals from an IRA?

Accepted Answer

A)  10%. 
B)  20%. 
C)  25%. 
D)  15%. 
A)  10%. 
B)  20%. 
C)  25%. 
D)  15%.

How much earned income do you need to meet the requirement for a Roth IRA?

The interest paid on U.S. savings bonds is usually ________ compared with savings rates paid by banks and credit unions.

Which of the following refers to a specific type of account set up by states that allows individuals to set money aside for a designated beneficiary's higher education expenses?

With a Roth IRA, when can you withdraw your principal without having to pay taxes on the withdrawal?

Which of the following can be held in a Uniform Transfers to Minors Act (UTMA) account?

Which of the following seals your credit reports so that no new accounts can be opened?

How much is the total loss associated with identity theft per year?

Which of the following could help you imagine what the future would look like in real terms?

Which of the following refers to no tax assessed on the earnings in the account in the year that the earnings are received?

Which of the following refers to the maximum amount in 2018 that you can contribute annually to a Roth IRA?

Which of the following refers to a traditional individual retirement account (IRA)?

Which of the following could you do to visualize building an emergency fund?

What is the minimum amount to purchase I bonds using your federal income tax refund?

What is the median length of time it takes a working adult who becomes unemployed to find another job?

Which of the following is provided by a college savings plan?

In 2018, your adjusted gross income must be less than what amount to contribute to a Roth IRA if you are single?

How much is the tax penalty for early withdrawals from an 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

How much earned income do you need to meet the requirement for a Roth IRA?

The interest paid on U.S. savings bonds is usually ________ compared with savings rates paid by banks and credit unions.

Which of the following refers to a specific type of account set up by states that allows individuals to set money aside for a designated beneficiary's higher education expenses?

With a Roth IRA, when can you withdraw your principal without having to pay taxes on the withdrawal?

Which of the following can be held in a Uniform Transfers to Minors Act (UTMA) account?

Which of the following seals your credit reports so that no new accounts can be opened?

How much is the total loss associated with identity theft per year?

Which of the following could help you imagine what the future would look like in real terms?

Which of the following refers to no tax assessed on the earnings in the account in the year that the earnings are received?

Which of the following refers to the maximum amount in 2018 that you can contribute annually to a Roth IRA?

Which of the following refers to a traditional individual retirement account (IRA)?

Which of the following could you do to visualize building an emergency fund?

What is the minimum amount to purchase I bonds using your federal income tax refund?

What is the median length of time it takes a working adult who becomes unemployed to find another job?

Which of the following is provided by a college savings plan?

In 2018, your adjusted gross income must be less than what amount to contribute to a Roth IRA if you are single?

How much is the tax penalty for early withdrawals from an 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