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FHCE 3200 Exam 3 Quiz Questions
Questions and Correct Answers/ Latest
Update / Already Graded
TRUE or FALSE: A Roth IRA qualifies for the IRA tax deduction found
on the 1040 tax form.
a. TRUE
b. FALSE
Ans: b. FALSE
Erin, a good friend of yours, would like to transfer a boat she inherited
to her nephew who is 9 years of age. She heard that there is a way to
go about doing this but is unsure. What type of custodial account will
she need?
a. Universal Transfer to Minors Act
b. Universal Bequest to Minors Act
c. Universal Gift to Minors Act
d. Universal Tax Advantaged Trust for Minors
Ans: a. Universal Transfer to Minors Act
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The ___________ rate of return is calculated by subtracting the rate of
inflation from the expected annual percentage yield from an
investment.
a. Real
b. Nominal
c. Accurate
d. Adjusted
Ans: a. Real
TRUE or FALSE: Subjective risk can be measured using probabilities.
a. TRUE
b. FALSE
Ans: b. FALSE
Commodities, collectibles, and speculative investments are
categorized _______ risk and return.
a. Medium
b. Average
c. High
d. Low
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Ans: c. High
An emergency fund is used to cover __________ risk.
a. Unexpected
b. Pure
c. Unavoidable
d. Possible
Ans: b. Pure
TRUE or FALSE: A household's emergency fund ratio is calculated by
dividing long-term assets by monthly living expenses.
a. TRUE
b. FALSE
Ans: b. FALSE
Which of the following options represents the most common
emergency related expense?
a. Hospital stays
b. Unexpected Job loss
c. Car repair
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d. Toothache
Ans: a. Hospital stays
When a person is considering the benefits of two options, he or she is
weighing the ______________ cost of their decision.
a. Potential
b. Probable
c. Opportunity
d. Possible
Ans: c. Opportunity
TRUE or FALSE: A dedicated savings account is similar to a CD but
allows contributions to the account all the way up to its maturity date.
a. TRUE
b. FALSE
Ans: a. TRUE
Which of the following bonds matures in 30 years after its purchase?
a. Treasury Bill
b. Treasury Inflation Protected Security
All rights reserved © 2025/ 2026 |
FHCE 3200 Exam 3 Quiz Questions
Questions and Correct Answers/ Latest
Update / Already Graded
TRUE or FALSE: A Roth IRA qualifies for the IRA tax deduction found
on the 1040 tax form.
a. TRUE
b. FALSE
Ans: b. FALSE
Erin, a good friend of yours, would like to transfer a boat she inherited
to her nephew who is 9 years of age. She heard that there is a way to
go about doing this but is unsure. What type of custodial account will
she need?
a. Universal Transfer to Minors Act
b. Universal Bequest to Minors Act
c. Universal Gift to Minors Act
d. Universal Tax Advantaged Trust for Minors
Ans: a. Universal Transfer to Minors Act
All rights reserved © 2025/ 2026 |
, Page |2
The ___________ rate of return is calculated by subtracting the rate of
inflation from the expected annual percentage yield from an
investment.
a. Real
b. Nominal
c. Accurate
d. Adjusted
Ans: a. Real
TRUE or FALSE: Subjective risk can be measured using probabilities.
a. TRUE
b. FALSE
Ans: b. FALSE
Commodities, collectibles, and speculative investments are
categorized _______ risk and return.
a. Medium
b. Average
c. High
d. Low
All rights reserved © 2025/ 2026 |
, Page |3
Ans: c. High
An emergency fund is used to cover __________ risk.
a. Unexpected
b. Pure
c. Unavoidable
d. Possible
Ans: b. Pure
TRUE or FALSE: A household's emergency fund ratio is calculated by
dividing long-term assets by monthly living expenses.
a. TRUE
b. FALSE
Ans: b. FALSE
Which of the following options represents the most common
emergency related expense?
a. Hospital stays
b. Unexpected Job loss
c. Car repair
All rights reserved © 2025/ 2026 |
, Page |4
d. Toothache
Ans: a. Hospital stays
When a person is considering the benefits of two options, he or she is
weighing the ______________ cost of their decision.
a. Potential
b. Probable
c. Opportunity
d. Possible
Ans: c. Opportunity
TRUE or FALSE: A dedicated savings account is similar to a CD but
allows contributions to the account all the way up to its maturity date.
a. TRUE
b. FALSE
Ans: a. TRUE
Which of the following bonds matures in 30 years after its purchase?
a. Treasury Bill
b. Treasury Inflation Protected Security
All rights reserved © 2025/ 2026 |
