GEB 3006 Exam 3 final UCF UPDATED
ACTUAL Exam Questions and CORRECT
Answers
What is the best description of recent house price trends in Florida? - CORRECT
ANSWER - Single family home sales have increased since 2008, but during the last year
the moving average flattened out before resuming its climb.
Employer benefits can be worth up to ___ of your base salary. - CORRECT ANSWER -
50%
Generally the two main employer benefits with the highest value are: - CORRECT
ANSWER - Retirement and health plans
Assume you have a 401-K plan and that your employer requires you to stay five years to "vest"
in the plan. If you leave the company in three years then, - CORRECT ANSWER - You
will lose the amount your employer contributed to the plan plus the earnings, but you will retain
your contributions and the earnings thereon
Which of the following health plans offers the most choice in doctors and has the highest cost? -
CORRECT ANSWER - PPO
Which of the following health plans generally requires that you first see your primary care
physician and remain within a restricted network of doctors? - CORRECT ANSWER -
HMO
Which of the following is TRUE?
-Flexible spending and health savings accounts are shown as reductions to your W-2 income, and
thus save federal taxes
-Unused flexible spending account balances may be carried forward to future years
,-Health savings plan accounts can only be used for a PPO plan
-A health savings account must be used each year - CORRECT ANSWER - Flexible
spending and health savings accounts are shown as reductions to your W-2 income, and thus
save federal taxes
After enrolling in your primary health insurance plan, which of the following is the next MOST
important insurance that all employees should sign up for during open enrollment? - CORRECT
ANSWER - Disability insurance
Assume the following:
Gross salary = $120,000
Employee contributions to 401-K = $12,000
Employer match to 401-K = $5,000
Flexible spending account savings = $2,000
Health insurance premiums paid by employee = $3,000
Health insurance paid directly by employer = $8,000
What is the W-2 taxable income? - CORRECT ANSWER - $103,000
An employer offers a 401-K plan under the following terms:
Employer will match 80% of all contributions up to 6%.
, If an employee saves 10% of his/her salary, then the employer will match ___ of their salary. -
CORRECT ANSWER - 4.8%
Employees without a pension plan should try to save at least _____ of their salary (including
employer 401-K plan matches) throughout their working careers. - CORRECT
ANSWER - 10-15%
Fidelity Investments recommends that individuals without pensions have about ___ times their
salary at age 67 in order to have a sufficient amount of money to retire. - CORRECT
ANSWER - 10
Assume you receive a tax free parking benefit worth $1,000/year. What is the pretax equivalent
of this benefit for individuals in a 15% marginal tax bracket? - CORRECT ANSWER -
$1,176
Assume you receive a taxable car allowance worth $1,000/year. What is the after tax equivalent
of this benefit for individuals in a 25% marginal tax bracket? - CORRECT ANSWER -
$750
Fidelity Investments recommends that individuals without pensions have about ___ times their
salary at age 30 in order to have a sufficient amount of money to retire. - CORRECT
ANSWER -1
Assume you are in a 35% marginal tax bracket.
If you saved $2,000 in your flexible savings account, you will save ___ in taxes. - CORRECT
ANSWER - 700
Which of the following statements is TRUE?
-If you are self employed, you will need to pay both the employee and employer share of your
social security and medicare tax
ACTUAL Exam Questions and CORRECT
Answers
What is the best description of recent house price trends in Florida? - CORRECT
ANSWER - Single family home sales have increased since 2008, but during the last year
the moving average flattened out before resuming its climb.
Employer benefits can be worth up to ___ of your base salary. - CORRECT ANSWER -
50%
Generally the two main employer benefits with the highest value are: - CORRECT
ANSWER - Retirement and health plans
Assume you have a 401-K plan and that your employer requires you to stay five years to "vest"
in the plan. If you leave the company in three years then, - CORRECT ANSWER - You
will lose the amount your employer contributed to the plan plus the earnings, but you will retain
your contributions and the earnings thereon
Which of the following health plans offers the most choice in doctors and has the highest cost? -
CORRECT ANSWER - PPO
Which of the following health plans generally requires that you first see your primary care
physician and remain within a restricted network of doctors? - CORRECT ANSWER -
HMO
Which of the following is TRUE?
-Flexible spending and health savings accounts are shown as reductions to your W-2 income, and
thus save federal taxes
-Unused flexible spending account balances may be carried forward to future years
,-Health savings plan accounts can only be used for a PPO plan
-A health savings account must be used each year - CORRECT ANSWER - Flexible
spending and health savings accounts are shown as reductions to your W-2 income, and thus
save federal taxes
After enrolling in your primary health insurance plan, which of the following is the next MOST
important insurance that all employees should sign up for during open enrollment? - CORRECT
ANSWER - Disability insurance
Assume the following:
Gross salary = $120,000
Employee contributions to 401-K = $12,000
Employer match to 401-K = $5,000
Flexible spending account savings = $2,000
Health insurance premiums paid by employee = $3,000
Health insurance paid directly by employer = $8,000
What is the W-2 taxable income? - CORRECT ANSWER - $103,000
An employer offers a 401-K plan under the following terms:
Employer will match 80% of all contributions up to 6%.
, If an employee saves 10% of his/her salary, then the employer will match ___ of their salary. -
CORRECT ANSWER - 4.8%
Employees without a pension plan should try to save at least _____ of their salary (including
employer 401-K plan matches) throughout their working careers. - CORRECT
ANSWER - 10-15%
Fidelity Investments recommends that individuals without pensions have about ___ times their
salary at age 67 in order to have a sufficient amount of money to retire. - CORRECT
ANSWER - 10
Assume you receive a tax free parking benefit worth $1,000/year. What is the pretax equivalent
of this benefit for individuals in a 15% marginal tax bracket? - CORRECT ANSWER -
$1,176
Assume you receive a taxable car allowance worth $1,000/year. What is the after tax equivalent
of this benefit for individuals in a 25% marginal tax bracket? - CORRECT ANSWER -
$750
Fidelity Investments recommends that individuals without pensions have about ___ times their
salary at age 30 in order to have a sufficient amount of money to retire. - CORRECT
ANSWER -1
Assume you are in a 35% marginal tax bracket.
If you saved $2,000 in your flexible savings account, you will save ___ in taxes. - CORRECT
ANSWER - 700
Which of the following statements is TRUE?
-If you are self employed, you will need to pay both the employee and employer share of your
social security and medicare tax
