Assets $56,000; annual expenses $60,000 Assets $78,000; net worth $22,000 Liabilities $45,000; net worth $6,000 Assets $40,000; liabilities $45,000 Annual cash inflows $45,000; liabilities $50,000 5.(TCO 1) Payments that do not vary from month to month are ____________ expenses. (Points: 5) fixed current variable luxury budgeted 6.(TCO 2) Reductions from gross income for such items as individual retirement account contributions and alimony payments will result in: (Points: 5) adjusted gross income. taxable income. earned income. passive income. total exclusions. 7.(TCO 2) Tax-deferred retirement plans are a type of: (Points: 5) exemption. itemized deduction. passive income. tax shelter. tax credit. 8.(TCO 2) A deduction from adjusted gross income for yourself, your spouse, and qualified dependents is: (Points: 5) the standard deduction. a tax credit. an itemized deduction. an exclusion. an exemption. 9.(TCO 2) A tax credit of $50 for a person in a 28 percent tax bracket would reduce a person’s taxes by: (Points: 5) $10. $28. $14. $50.
$35. 10.(TCO 2) The rate of return on a savings account is also referred to as: (Points: 5) liquidity. compounding. yield. insolvency. asset management. 11.(TCO 2) A $200 savings account that earns $13 interest in a year has a yield of ____________ percent. (Points: 5) 6 13 7 11.25 6.5 12.(TCO 3) Dave’s take home pay per month is $2200. What is the maximum dollar amount of debt payments he should have? (Points: 5) $880 $440 $330 $220 $0 13.(TCO 3) If you have incorrect information in your credit file: (Points: 5) you can’t really do much about it. you have no legal remedies. credit bureaus are not required to change it. there are legal remedies available to you. don’t worry much because you will still get the credit. 14.(TCO 3) Gordon Carey uses his Visa card to purchase a new digital camera and lens. What type of credit did Gordon use? (Points: 5) installment sales credit installment cash credit single lump sum credit revolving credit incidental credit