FICEP EXAM WITH COMPLETE QUESTIONS AND CORRECT
VERIFIED ANSWERS (DETAILED ANSWERS) ALREADY
GRADED A+ 100% GUARANTEED TO PASS CONCEPTS!!!.
When members use tax refunds to pay down debts, which debts should be
paid first? - ANSWER-Always pay the debts with high interest rates or that
could prompt garnishments.
Which type of qualified IRA withdrawal is exempt from income tax? - ANSWER-
Roth IRA withdrawals are exempt.
Which group of taxpayers usually qualifies for the Earned Income Tax Credit
(EITC)? - ANSWER-Low-income families with earned income qualify for the
credit.
These six expenses are typically accepted by the IRS as itemized deductions: -
ANSWER-Traditional IRA contributions, alimony payments, real estate taxes
paid, state and local income taxes, mortgage interest, and casualty and theft
losses.
Select the statement that correctly describes a progressive tax. - ANSWER-A
progressive tax requires people to pay more as they earn more.
What is the name of the organization that offers free tax assistance to
taxpayers age 60 or older, those with disabilities or special needs, or who
qualify for earned income or homestead tax credits? - ANSWER-Tax Counseling
for the Elderly (TCE)
,What percent of tax payers are eligible to use the "Free File Online" service
offered as a partnership between the IRS and tax software companies? -
ANSWER-70% are eligible
What is the meaning of the insurance practice "pooling of risks"? - ANSWER-
Combining risks among insurers as well as groups of individuals.
How did the Consolidated Omnibus Budget Reconciliation Act (COBRA) of 1985
impact employee health benefits? - ANSWER-It gave employees the right to
retain health insurance after their job ends by paying the full premium.
Under standard property insurance plans, how much of the cost of replacing
property is typically covered? - ANSWER-80%
Which statement best defines comprehensive and collision insurance coverage
for vehicles? - ANSWER-Collision is for accidents and comprehensive is for
other forms of damage and theft.
What type of protection is provided by an umbrella liability policy? - ANSWER-It
protects homeowners and vehicle owners from lawsuits.
Which statement accurately describes features of term insurance and whole
life insurance? - ANSWER-Whole life policies build cash value and policy
settlement options.
Why should a member never simply drop a whole life insurance policy? -
ANSWER-Whole life policies usually have cash value, or surrender options.
What is the "rule of 72" used to determine? - ANSWER-The number of years
required to double the investment: 72 divided by the current interest rate.
, What is the rate of return? - ANSWER-The percentage gain in value on your
investment.
If you drop your thermostat by one degree, how much will it cut your heating
costs? - ANSWER-3%
In order to make a cost-effective car purchase, what should you consider before
buying? - ANSWER-You should consider the car's cost to buy, cost to maintain,
ability to meet your needs, and resale value.
What are some potential disadvantages of leasing a car? - ANSWER-Leases
sometimes allow dealers to charge additional fees for exceeding the contract's
mileage or causing high "wear and tear" on the card.
What is an advantage of prepaid cellphone plans? - ANSWER-Prepaid pay-as-
you-go plans are better for people with low credit ratings.
What is the likely outcome of making only the minimum payment on credit
cards and other forms of debt? - ANSWER-It traps the borrower in an endless
cycle of debt.
What effect did the Great Recession have on Americans' savings habits? -
ANSWER-On average, they are now saving three percent of the annual income
pared to fourteen percent in the 1970s.
What are the three levels of the savings pyramid? - ANSWER-Periodic savings,
safety-net accounts, and retirement or other long-term savings.
VERIFIED ANSWERS (DETAILED ANSWERS) ALREADY
GRADED A+ 100% GUARANTEED TO PASS CONCEPTS!!!.
When members use tax refunds to pay down debts, which debts should be
paid first? - ANSWER-Always pay the debts with high interest rates or that
could prompt garnishments.
Which type of qualified IRA withdrawal is exempt from income tax? - ANSWER-
Roth IRA withdrawals are exempt.
Which group of taxpayers usually qualifies for the Earned Income Tax Credit
(EITC)? - ANSWER-Low-income families with earned income qualify for the
credit.
These six expenses are typically accepted by the IRS as itemized deductions: -
ANSWER-Traditional IRA contributions, alimony payments, real estate taxes
paid, state and local income taxes, mortgage interest, and casualty and theft
losses.
Select the statement that correctly describes a progressive tax. - ANSWER-A
progressive tax requires people to pay more as they earn more.
What is the name of the organization that offers free tax assistance to
taxpayers age 60 or older, those with disabilities or special needs, or who
qualify for earned income or homestead tax credits? - ANSWER-Tax Counseling
for the Elderly (TCE)
,What percent of tax payers are eligible to use the "Free File Online" service
offered as a partnership between the IRS and tax software companies? -
ANSWER-70% are eligible
What is the meaning of the insurance practice "pooling of risks"? - ANSWER-
Combining risks among insurers as well as groups of individuals.
How did the Consolidated Omnibus Budget Reconciliation Act (COBRA) of 1985
impact employee health benefits? - ANSWER-It gave employees the right to
retain health insurance after their job ends by paying the full premium.
Under standard property insurance plans, how much of the cost of replacing
property is typically covered? - ANSWER-80%
Which statement best defines comprehensive and collision insurance coverage
for vehicles? - ANSWER-Collision is for accidents and comprehensive is for
other forms of damage and theft.
What type of protection is provided by an umbrella liability policy? - ANSWER-It
protects homeowners and vehicle owners from lawsuits.
Which statement accurately describes features of term insurance and whole
life insurance? - ANSWER-Whole life policies build cash value and policy
settlement options.
Why should a member never simply drop a whole life insurance policy? -
ANSWER-Whole life policies usually have cash value, or surrender options.
What is the "rule of 72" used to determine? - ANSWER-The number of years
required to double the investment: 72 divided by the current interest rate.
, What is the rate of return? - ANSWER-The percentage gain in value on your
investment.
If you drop your thermostat by one degree, how much will it cut your heating
costs? - ANSWER-3%
In order to make a cost-effective car purchase, what should you consider before
buying? - ANSWER-You should consider the car's cost to buy, cost to maintain,
ability to meet your needs, and resale value.
What are some potential disadvantages of leasing a car? - ANSWER-Leases
sometimes allow dealers to charge additional fees for exceeding the contract's
mileage or causing high "wear and tear" on the card.
What is an advantage of prepaid cellphone plans? - ANSWER-Prepaid pay-as-
you-go plans are better for people with low credit ratings.
What is the likely outcome of making only the minimum payment on credit
cards and other forms of debt? - ANSWER-It traps the borrower in an endless
cycle of debt.
What effect did the Great Recession have on Americans' savings habits? -
ANSWER-On average, they are now saving three percent of the annual income
pared to fourteen percent in the 1970s.
What are the three levels of the savings pyramid? - ANSWER-Periodic savings,
safety-net accounts, and retirement or other long-term savings.
