(TCO 2) This type of tax is calculated based upon the value
of land and buildings.
Personal
Real estate
Direct
Proportional
Regressive
Chapter
4, page 106
Points Received:
Comments:
Question 2. Question
:
(TCO 2) Interest earnings of $2,400 from a taxable
investment for a person in a 28% tax bracket would result in after-tax earnings
of
$672.
$1,728.
$2,400.
$3,333.
$8,571.
Chapter
4, pages 108, 112–113
Points Received:
Comments:
Question 3. Question
:
(TCO 2) _____ can reduce taxable income.
Portfolio income
Tax credits
Exclusions
Passive income
Earned income
Chapter
4, page 109
Points Received:
Comments: Exclusions
Question 4. Question
:
(TCO 2) Whenever an individual takes on a personal effort
and receives money, this is reported as _____ income.
passive
earned
portfolio
excluded
capital gains
Chapter
4, page 108
Points Received:
Comments:
Question 5. Question
:
(TCO 2) George Washburn had earnings from his salary of
$44,000, interest on savings of $800, a contribution to a traditional
individual retirement account of $2,000, and dividends from mutual funds of
$600. George’s adjusted income (AGI) would be
$43,400.
$44,000.
$45,400.
$42,000.
$42,800.
Chapter
4, page 108
Points Received:
Comments:
Question 6. Question
:
(TCO 2) _____ can be calculated as a result of various items
being subtracted from gross income, such as individual retirement account
contributions and alimony payments.
Adjusted gross income
Taxable income
Earned income
Passive income
Total exclusions
Chapter
4, page 109
Points Received:
Comments:
Question 7. Question
:
(TCO 2) When filing your taxes, a set amount on which no
taxes are paid is called _____.
itemized deductions
withholding
an earned tax credit
the standard deduction
capital gains
Chapter
4, page 109
Points Received:
Comments: the standard deduction
Question 8. Question
:
(TCO 2) Taxes owed can be reduced through _____.
the standard deduction
a tax credit
an itemized deduction
an exclusion
an exemption
Chapter
4, page 113
Points Received:
Comments: a tax credit
Question 9. Question
:
(TCO 2) _____ would qualify a person for an exemption when
computing taxable income.
Mortgage interest
A tax shelter
A dependent
Charitable contributions
Passive income
Chapter
4, page 111
Points Received:
Comments:
Question 10. Question
:
(TCO 2) Generally, the way most people pay federal income
tax is by
paying the total amount owed by April 15.
filing quarterly tax payments.
having amounts withheld from income.
earning tax credits for various deductions.
Chapter
4, page 116
Points Received:
Comments:
Question 11. Question
:
(TCO 2) If you expect interest rates will decline over the
next few months, you should use a(n) _____ to maximize your earnings.
regular savings account
interest-bearing checking account
5-year certificate of deposit
6-month certificate of deposit
money market fund
Chapter
5, page 144
Points Received:
Comments:
Question 12. Question
:
(TCO 2) An example of a _____ deposit is a checking account.
common
time
current
loan
demand
Chapter
5, page 141
Points Received:
Comments:
Question 13. Question
:
(TCO 2) When profits are generated by a mutual savings bank,
they will go to the
creditors.
loan applicants.
stockholders.
depositors.
community in which it operates.
Chapter
5, page 145
Points Received:
Comments:
Question 14. Question
:
(TCO 2) _____ are the major products offered by investment
companies.
Interest-bearing checking accounts
Variable-rate loans
Credit card accounts
Savings bonds
Mutual funds
Chapter
5, page 148
Points Received:
Comments:
Question 15. Question
:
(TCO 2) One of the characteristics of a certificate of
deposit is that it can have
high interest-rate risk.
low safety for savers.
limited liquidity.
a variable rate of return.
no minimum deposit amount.
Chapter
5, page 150
Points Received:
Comments: limited liquidity.
Question 16. Question
:
(TCO 2) A $325 savings account that earns $15 interest in a
year has a yield of _____.
7.5%
4.8%
3%
15%
4.6%
Chapter
5, page 154
Points Received:
Comments:
Question 17. Question
:
(TCO 2) Financial institutions must _____ as a requirement
of the Truth in Savings Act.
provide insurance for savings accounts
send customers monthly bank statements
report annual percentage yield on savings
offer adjustable-rate savings accounts
become members of the Federal Reserve System
Chapter
5, page 155
Points Received:
Comments:
Question 18. Question
:
(TCO 2) If a person wants to earn a relatively higher
savings rate on his or her money, he or she may select a _____ at a commercial
bank
regular savings account
regular checking account
share draft
money market account
Chapter
5, page 152
Points Received:
Comments:
Question 19. Question
:
(TCO 2) When a person is presenting a check in order to
obtain cash, a _____ endorsement would be used.
restrictive
common
special
blank
documented
Chapter
5, page 162
Points Received:
Comments:
Question 20. Question
:
(TCO 2) The _____ is the rate that the Federal Reserve
charges banks for loans.
prime rate
discount rate
mortgage rate
Treasury bond rate
corporate bond
Chapter
5, page 146
