FCS340 Money Management exam 31.

FCS340 Money Management exam 31. 2. Property tax 3. personal property taxes 4. excise taxes A. Taxes applied to the purchase price of taxable goods. B. Traditionally used to support public schools. C. Levied by states on certain assets such as vehicles. D. Taxes levied for products such as gasoline and cigarettes. -ANSWER- 1. Sales Tax = A. Taxes applied to the purchase price of taxable goods. 2. Property tax = B. Traditionally used to support public schools. 3. personal property taxes = C. Levied by states on certain assets such as vehicles. 4. excise taxes = D. Taxes levied for products such as gasoline and cigarettes. .A tax deduction is more valuable than a tax credit. True False -ANSWER- False .A typical liability insurance policy would be a 100/300/50 policy. Match the number with the coverage. 1. limit per person for bodily injury liability coverage 2. limit per accident for bodily injury liability coverage 3. limit per accident for property damage coverage. A. 100 B. 300 C. 50 -ANSWER- A 100 = 1. limit per person for bodily injury liability coverage B. 300 = 2. limit per accident for bodily injury liability coverage C. 50 = 3. limit per accident for property damage coverage. .A typical vehicle loses half of its value after years? 2 3 4 5 -ANSWER- 3 .According to the text, what percentage of new vehicles are leased rather than purchased? Les than 10% 10% - 19% 20% - 29% 30% or Greater -ANSWER- 20% - 29% .According to the text, which of the following should we consider in regard to life insurance? Do I need life insurance? What life insurance do my friends have? How much life insurance should I purchase? What kind of life insurance should I buy? How much does life insurance cost? How should the life insurance proceeds be received? -ANSWER- Do I need life insurance? How much life insurance should I purchase? What kind of life insurance should I buy? How should the life insurance proceeds be received? .Automobile liability coverage is legally required in every state. True False -ANSWER- False .Contributions to a Traditional IRA or a Traditional 401(k) plan is an example of which type of income? Adjustments to income Exclusions to income Active income Passive income -ANSWER- Adjustments to income .Depreciation is one of the variables that should be considered in understanding the total cost of owning a car. True False -ANSWER- True .Disability insurance isn't typically a recommended insurance coverage for healthy individuals because the risk of disability is lower than the risk of premature death. True False -ANSWER- False .Federal income tax is an example of a regressive tax system. True False -ANSWER- False .Financing a car through is usually the most expensive type of financing. a bank a credit union a dealership an online institution -ANSWER- A dealership .Floods and earthquakes are typically covered in a homeowner's policy. True False -ANSWER- False .If you have anyone dependent on your income, you have an ethical responsibility to have sufficient life insurance. True False -ANSWER- True .Match the consumer resource with the assistance it would provide for a car buyer. 1. Carfax 2. KBB 3. Consumer Reports A. Vehicle history B. Fair value of vehicle C. Comparing vehicle options -ANSWER- 1. Carfax = A. Vehicle history 2. KBB = B. Fair value of vehicle 3. Consumer Reports = C. Comparing vehicle options .The authors suggest that is perhaps the most important tax strategy to reduce your lifetime income tax burden. having a large family the earned income tax credit a Roth 401(k) and/or a Roth IRA a tax credit -ANSWER- a Roth 401(k) and/or a Roth IRA .The text states that leasing is the best way to finance a vehicle. True False -ANSWER- False .There are four ways you can manage risk: avoid it, reduce it, assume it, or transfer it. Match each tactic with the likelihood of risk. 1. Assume Risk (for example, losing a wallet) 2. Transfer Risk (for example, home fire) 3. Reduce Risk (for example, common cold) 4. Avoid Risk (for example, lung cancer caused by smoking) A. Low Frequency, Low Severity B. Low Frequency, High Severity C. High Frequency, Low Severity D. High Frequency, High Severity -ANSWER- 1. Assume Risk (for example, losing a wallet) = A. Low Frequency, Low Severity 2. Transfer Risk (for example, home fire) = B. Low Frequency, High Severity 3. Reduce Risk (for example, common cold) = C. High Frequency, Low Severity 4. Avoid Risk (for example, lung cancer caused by smoking) = D. High Frequency, High Severity .There are two kinds of financial loss that are associated with health problems: the cost of medical care, and the loss of income. True False -ANSWER- True .Uninsured or underinsured motorist coverage will only pay if the other driver is at fault. True False -ANSWER- True .What strategies outlined in the text will commonly reduce your auto insurance premium? Select all that apply. Maintaining a certain GPA Shop comparatively Maintaining a high credit score Driving at slower speeds Carpooling -ANSWER- Maintaining a certain GPA Shop comparatively Maintaining a high credit score Carpooling .What type of auto coverage would cover damage caused by a hailstorm, earthquake, lightning, or a deer? Collision Comprehensive No-fault Liability -ANSWER- Comprehensive