GEB 3006 LATEST 2026 CORE EXAM TEST QUESTIONS AND
SOLUTIONS GRADED A+
✔✔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. -
✔✔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. -
✔✔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
-Employee contributions to social security are matched by their employer
-The Social Security or FICA tax is 6.2% and the maximum amount of earnings subject
to Social Security tax is $128,400 in 2018
-All W-2 earnings are subject to the 1.45% Medicare tax.
-All of above - ✔✔All of the above
✔✔At what age will you become eligible for Medicare? - ✔✔65
✔✔At what age are you eligible for early Social Security? - ✔✔62, and the amount
received is a discounted benefit compared to the full retirement benefit
✔✔Which of the following statements is FALSE?
-If you lose your job due to a layoff, you will be eligible for state unemployment benefits
-Typically companies will offer severance benefits when there is a downsizing
-If you are offered a chance to "resign" instead of being fired, then this might look better
on your resume.
-If you accepted a chance to "resign" instead of being fired, then you are still eligible for
state unemployment benefits. - ✔✔If you accepted a chance to "resign" instead of being
fired, then you are still eligible for state unemployment benefits.
✔✔It is always a good idea to purchase disability insurance if offered by your employer.
- ✔✔True
✔✔If you resign from a job, you will not be entitled to unemployment compensation. -
✔✔True
✔✔Which health plan has a low cost but high deductible? - ✔✔HDHP
, ✔✔Unused savings in a Health savings accounts (HSA) can be carried forward to future
years. Unused savings can be invested and HSAs can only be used for PPO plans. -
✔✔False
✔✔The rules for flexible spending accounts generally require that employees use the
money within the current year or lose unused savings. - ✔✔True
✔✔Which of the following statements is TRUE?
-Early withdrawals from a 401-K are subject to a 10% penalty (with some exceptions).
-All of the above are true.
-401-Ks provide tax deferred savings.
-The employer match in a 401-K plan and the related earnings must be "vested" in order
to be the legal property of the employee. - ✔✔All of the above are true.
✔✔When you leave your job, you should always rollover your 401-K assets to a self
directed rollover IRA. - ✔✔True
✔✔Assume that you save 5% of your salary in your 401-K plan and your employer will
match 4%. Before even investing the money, your return on savings will be: - ✔✔80%
✔✔Fidelity Investments studied customers with > $1 million in their 401-K account.
Which of the following was NOT an attribute of individuals who had saved over $1
million:
-They considered mutual funds that invested primarily in bonds.
-All of the above were attributes of individuals with >$1 million in their 401-K account.
-They started saving early.
-They contributed a minimum of 10-15% of their salary. - ✔✔They considered mutual
funds that invested primarily in bonds.
✔✔Which of the following retirement plans allows employees to save with after tax
dollars which grow tax free? - ✔✔Roth 401-K Plans
✔✔Between 1990 and 2010, the average US savings rate was around: - ✔✔5%
✔✔What two factors count for 65% of your FICO score? - ✔✔Payment history and
outstanding debts
✔✔Which company has developed the MOST commonly used credit score to evaluate
an individual's credit? - ✔✔Fair Isaac Corporation
SOLUTIONS GRADED A+
✔✔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. -
✔✔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. -
✔✔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
-Employee contributions to social security are matched by their employer
-The Social Security or FICA tax is 6.2% and the maximum amount of earnings subject
to Social Security tax is $128,400 in 2018
-All W-2 earnings are subject to the 1.45% Medicare tax.
-All of above - ✔✔All of the above
✔✔At what age will you become eligible for Medicare? - ✔✔65
✔✔At what age are you eligible for early Social Security? - ✔✔62, and the amount
received is a discounted benefit compared to the full retirement benefit
✔✔Which of the following statements is FALSE?
-If you lose your job due to a layoff, you will be eligible for state unemployment benefits
-Typically companies will offer severance benefits when there is a downsizing
-If you are offered a chance to "resign" instead of being fired, then this might look better
on your resume.
-If you accepted a chance to "resign" instead of being fired, then you are still eligible for
state unemployment benefits. - ✔✔If you accepted a chance to "resign" instead of being
fired, then you are still eligible for state unemployment benefits.
✔✔It is always a good idea to purchase disability insurance if offered by your employer.
- ✔✔True
✔✔If you resign from a job, you will not be entitled to unemployment compensation. -
✔✔True
✔✔Which health plan has a low cost but high deductible? - ✔✔HDHP
, ✔✔Unused savings in a Health savings accounts (HSA) can be carried forward to future
years. Unused savings can be invested and HSAs can only be used for PPO plans. -
✔✔False
✔✔The rules for flexible spending accounts generally require that employees use the
money within the current year or lose unused savings. - ✔✔True
✔✔Which of the following statements is TRUE?
-Early withdrawals from a 401-K are subject to a 10% penalty (with some exceptions).
-All of the above are true.
-401-Ks provide tax deferred savings.
-The employer match in a 401-K plan and the related earnings must be "vested" in order
to be the legal property of the employee. - ✔✔All of the above are true.
✔✔When you leave your job, you should always rollover your 401-K assets to a self
directed rollover IRA. - ✔✔True
✔✔Assume that you save 5% of your salary in your 401-K plan and your employer will
match 4%. Before even investing the money, your return on savings will be: - ✔✔80%
✔✔Fidelity Investments studied customers with > $1 million in their 401-K account.
Which of the following was NOT an attribute of individuals who had saved over $1
million:
-They considered mutual funds that invested primarily in bonds.
-All of the above were attributes of individuals with >$1 million in their 401-K account.
-They started saving early.
-They contributed a minimum of 10-15% of their salary. - ✔✔They considered mutual
funds that invested primarily in bonds.
✔✔Which of the following retirement plans allows employees to save with after tax
dollars which grow tax free? - ✔✔Roth 401-K Plans
✔✔Between 1990 and 2010, the average US savings rate was around: - ✔✔5%
✔✔What two factors count for 65% of your FICO score? - ✔✔Payment history and
outstanding debts
✔✔Which company has developed the MOST commonly used credit score to evaluate
an individual's credit? - ✔✔Fair Isaac Corporation
