FHCE 3200 Exam 2 ACTUAL UPDATED
Exam Questions and CORECT Answers
Standard deduction - CORRECT ANSWER The amount of money one can choose to reduce
their taxable income by. Based off of various filing statuses
Itemized deduction - CORRECT ANSWER The reduction of taxable income through citing a
specific expense
Marginal tax rate - CORRECT ANSWER The amount of tax paid on the next dollar earned
Effective tax rate - CORRECT ANSWER The actual rate one pays in taxes as a percentage of
his or her income
Capital gain income - CORRECT ANSWER Income received from sources of investment
Tax credit - CORRECT ANSWER A reduction in the amount of taxes one owes (four general
types we talked about: health, savings, education, child)
Automated Clearing House - CORRECT ANSWER A network where funds are transferred
between member banks
Loan process - CORRECT ANSWER Determine amount needed, shop around for lowest
APR and compare interest, principal amounts and length of time required to pay back loan
Amortization schedule - CORRECT ANSWER
Credit scoring process - CORRECT ANSWER
Exam Questions and CORECT Answers
Standard deduction - CORRECT ANSWER The amount of money one can choose to reduce
their taxable income by. Based off of various filing statuses
Itemized deduction - CORRECT ANSWER The reduction of taxable income through citing a
specific expense
Marginal tax rate - CORRECT ANSWER The amount of tax paid on the next dollar earned
Effective tax rate - CORRECT ANSWER The actual rate one pays in taxes as a percentage of
his or her income
Capital gain income - CORRECT ANSWER Income received from sources of investment
Tax credit - CORRECT ANSWER A reduction in the amount of taxes one owes (four general
types we talked about: health, savings, education, child)
Automated Clearing House - CORRECT ANSWER A network where funds are transferred
between member banks
Loan process - CORRECT ANSWER Determine amount needed, shop around for lowest
APR and compare interest, principal amounts and length of time required to pay back loan
Amortization schedule - CORRECT ANSWER
Credit scoring process - CORRECT ANSWER
