FiCEP Final Exam Study Guide
1. Undeveloped land, gold and diamonds, or speculative stocks pose thehighest level of for
investors.: risk
2. Indicators that a financial advisor is are completion of training and
licenses with companies, exchanges, and regulators with which theywork.: reliable
3. Sometimes a member's choices regarding can cause a member's
finances to get out of control.: housing
4. One consideration when choosing between buying or renting a home isthe you
will live there.: length of time
5. A monthly payment on a home can be considered .: forced
savings
6. There are to purchasing a home, like deductions for discount pointsand
orientation fees, mortgage interest, home improvement loan interest, energy efficient upgrades
and property tax deductions.: tax benefits
7. Sharing housing expenses may be accomplished by getting a .: fulltime or part time
roommate
8. The cost of owning a home includes .: insurance, utilities, and
upkeep
9. Sometime owning a vehicle is not the best choice for transportation.Alternatives can be
.: public transportation and bicycling
10. When you take a trip, choose the vehicle that gets the best
for thetrip.: mileage
11. You can manage the costs of insurance by looking at the type of car youpurchase, theft
rate, .: safety features and deductibles
12. Choose the right vehicle for the
13. Secure your financing for a vehicle
you will use it.: way
you shop and consider how
much you are able to spend on the purchase.: before
14. One way to do more with less is to .: stop borrowing money
15. If you leave your at home you will not be able to make impulsepurchases.:
cash and credit cards
16. may not be worth the costs considering the limited advantages.: landlines
17. Choices regarding your telecommunications can be or
,contractbased.: pay as you go
18. A challenge of self-employment includes painting a reliable, steady .-
: source of income
19. are a consideration for self-employed individuals.: estimated taxpayments and
social security taxes
20. Small businesses can acquire from savings, loans, and the equityin
their home.: capital
21. Writing a is the first step to operating a successful small business.-
: good business plan
22. is a problem for commission-based employees, those that rely ontips, and
seasonal workers.: variable income
23. Accomplishing big tasks can be done by making the .: small
steps
24. Credit scores from are used by 90% of financial institutions.: FairIsaac
Corporation
25. Department store cards have higher rates and may offer a to
enticemembers to get credit they don't really need.: discount
26. may not be the best deal because of balance transfer fees, the lengthof time for the
lower rate, and other fees charged by the creditor.: teaser rates
27. Things to consider when choosing the best may be whether or
notthey charge an application fee, processing fees, over limit fees, or length of grace periods.:
credit card
28. A tax is defined as a contribution that supports the of a government.-
: operating costs
29. A tax requires a taxpayer to pay more tax as their income increases. (Federal and state
income taxes are examples): progressive
30. A tax charges the same percentage of the cost of a good or service, no matter what
the taxpayer earns. (Sales tax, gas taxes, and liquor taxes areexamples): regressive
31. Sometimes taxes are called .: fees or
surcharges
32. A could include the cost of a driver's license or a hunting license.: fee
33. A could be a gasoline tax, tobacco tax, or liquor tax.: surcharge
34. Taking care of is as important for a member's financial
well-being asit is to pay their bills on time.: tax obligations
, 35. Any from the IRS should be reviewed and dealt with as soon aspossible.:
correspondence
36. If you have not been able to resolve a problem with the IRS, seek assistance
from the .: taxpayer advocate service.
37. Complex tax situations might require members to hire a .: tax
profes-sional
38. % of taxpayers may be eligible for free tax filing assistance.: 70
39. If members get a large refund, they might want to change their if
40. Caution members that using refund anticipation loans can be a w
41. The first choice for using a tax refund is to .: pay down debt
42. Other tax authorities that members must pay attention to are state incometax, property tax,
and .: self-employment quarterly taxes
43. Examples of are wages, salaries and tips, interest income, alimony,business
income, capital gains, pensions and annuities, other forms of in- come, and distributions from
a traditional IRA.: taxable income
44. Examples of are child support payments, life insurance benefits paid to a beneficiary,
gifts and inheritances from parents, social security benefits, benefits from welfare, and
qualified distributions from roth IRAs.: non-taxableincome
45. can make a difference in the taxes paid.: filing status
46. Examples of are single, married filing jointly, married filing sepa- rately, head of
household, and qualified widow or widower with dependentchildren.: filing status
47. Saving for retirement can also save taxes by making contributions to a
.: 401(k) plan
48. If a person is in a 25% income bracket, they could save 25% of the moneythey deposit
into a .: traditional IRA
49. Financial counseling clients can manage some of the risks in life by havingthe right types
and amounts of .: insurance
50. An in a car you financed at the credit union could be held by bothyou and the
credit union.: insurable interest
51. You can make a better choice about insurance coverage if you evaluateyour .: risks
52. An can give you protection if someone sues you for an accident onyour
property.: umbrella liability policy
53. can help manage the costs of insurance.: deductibles and policy limits
54. provides the right for an employee that is terminated or resigns to keep their
1. Undeveloped land, gold and diamonds, or speculative stocks pose thehighest level of for
investors.: risk
2. Indicators that a financial advisor is are completion of training and
licenses with companies, exchanges, and regulators with which theywork.: reliable
3. Sometimes a member's choices regarding can cause a member's
finances to get out of control.: housing
4. One consideration when choosing between buying or renting a home isthe you
will live there.: length of time
5. A monthly payment on a home can be considered .: forced
savings
6. There are to purchasing a home, like deductions for discount pointsand
orientation fees, mortgage interest, home improvement loan interest, energy efficient upgrades
and property tax deductions.: tax benefits
7. Sharing housing expenses may be accomplished by getting a .: fulltime or part time
roommate
8. The cost of owning a home includes .: insurance, utilities, and
upkeep
9. Sometime owning a vehicle is not the best choice for transportation.Alternatives can be
.: public transportation and bicycling
10. When you take a trip, choose the vehicle that gets the best
for thetrip.: mileage
11. You can manage the costs of insurance by looking at the type of car youpurchase, theft
rate, .: safety features and deductibles
12. Choose the right vehicle for the
13. Secure your financing for a vehicle
you will use it.: way
you shop and consider how
much you are able to spend on the purchase.: before
14. One way to do more with less is to .: stop borrowing money
15. If you leave your at home you will not be able to make impulsepurchases.:
cash and credit cards
16. may not be worth the costs considering the limited advantages.: landlines
17. Choices regarding your telecommunications can be or
,contractbased.: pay as you go
18. A challenge of self-employment includes painting a reliable, steady .-
: source of income
19. are a consideration for self-employed individuals.: estimated taxpayments and
social security taxes
20. Small businesses can acquire from savings, loans, and the equityin
their home.: capital
21. Writing a is the first step to operating a successful small business.-
: good business plan
22. is a problem for commission-based employees, those that rely ontips, and
seasonal workers.: variable income
23. Accomplishing big tasks can be done by making the .: small
steps
24. Credit scores from are used by 90% of financial institutions.: FairIsaac
Corporation
25. Department store cards have higher rates and may offer a to
enticemembers to get credit they don't really need.: discount
26. may not be the best deal because of balance transfer fees, the lengthof time for the
lower rate, and other fees charged by the creditor.: teaser rates
27. Things to consider when choosing the best may be whether or
notthey charge an application fee, processing fees, over limit fees, or length of grace periods.:
credit card
28. A tax is defined as a contribution that supports the of a government.-
: operating costs
29. A tax requires a taxpayer to pay more tax as their income increases. (Federal and state
income taxes are examples): progressive
30. A tax charges the same percentage of the cost of a good or service, no matter what
the taxpayer earns. (Sales tax, gas taxes, and liquor taxes areexamples): regressive
31. Sometimes taxes are called .: fees or
surcharges
32. A could include the cost of a driver's license or a hunting license.: fee
33. A could be a gasoline tax, tobacco tax, or liquor tax.: surcharge
34. Taking care of is as important for a member's financial
well-being asit is to pay their bills on time.: tax obligations
, 35. Any from the IRS should be reviewed and dealt with as soon aspossible.:
correspondence
36. If you have not been able to resolve a problem with the IRS, seek assistance
from the .: taxpayer advocate service.
37. Complex tax situations might require members to hire a .: tax
profes-sional
38. % of taxpayers may be eligible for free tax filing assistance.: 70
39. If members get a large refund, they might want to change their if
40. Caution members that using refund anticipation loans can be a w
41. The first choice for using a tax refund is to .: pay down debt
42. Other tax authorities that members must pay attention to are state incometax, property tax,
and .: self-employment quarterly taxes
43. Examples of are wages, salaries and tips, interest income, alimony,business
income, capital gains, pensions and annuities, other forms of in- come, and distributions from
a traditional IRA.: taxable income
44. Examples of are child support payments, life insurance benefits paid to a beneficiary,
gifts and inheritances from parents, social security benefits, benefits from welfare, and
qualified distributions from roth IRAs.: non-taxableincome
45. can make a difference in the taxes paid.: filing status
46. Examples of are single, married filing jointly, married filing sepa- rately, head of
household, and qualified widow or widower with dependentchildren.: filing status
47. Saving for retirement can also save taxes by making contributions to a
.: 401(k) plan
48. If a person is in a 25% income bracket, they could save 25% of the moneythey deposit
into a .: traditional IRA
49. Financial counseling clients can manage some of the risks in life by havingthe right types
and amounts of .: insurance
50. An in a car you financed at the credit union could be held by bothyou and the
credit union.: insurable interest
51. You can make a better choice about insurance coverage if you evaluateyour .: risks
52. An can give you protection if someone sues you for an accident onyour
property.: umbrella liability policy
53. can help manage the costs of insurance.: deductibles and policy limits
54. provides the right for an employee that is terminated or resigns to keep their
