2.10 Module 2 Exam – Flashcards

Sandra earns $22,000 per year. Her earnings put her in the 20% tax rate. What is her tax owed?

Which of these is an example of indirect tax?

Gerald usually buys name brand pain relievers to treat his headaches, but he recently noticed the generic store brand is two dollars cheaper. Upon trying the product, he discovers it works equally as well as the name brand. This example shows how Gerald

If an investor possesses a portfolio heavily concentrated in bank checking accounts, a financial advisor would most likely suggest which of the following aggressive investments to diversify the portfolio?

What are stocks?

You earn $50,000 per year, and the federal tax rate is 10 percent. Your gross income is

Samuel needs to decrease his expenses. To which category should he make cuts first?

Compared to earning a four-year degree, a technical certification allows you to

Laurent saves money from his lawn service to buy a new $20,000 mower and trailer. He would like to buy the new equipment as soon as possible but only has $12,000 in his simple interest savings account. To reach his goal sooner, Laurent should

Making a down payment on a loan will

A common marketing strategy used by retailers to make products appear more attractive is to list a $100 item for

Johann maintains a $75,000 insurance policy on his boat. He pays $50 per month in premiums and his deductible is $2,500. If he is involved in an accident and makes a claim of $3,000 on the policy, how much will he have to pay?

If the Federal Reserve raises the federal funds rate, what will likely happen to certificates of deposit offered by banks?

Which of the following actions would likely raise automobile insurance premiums?

Kyle and Lyle want to pool their inheritance money to make a joint investment. They are young and are willing to accept moderate to high risk over a number of years. Which combination of investment options best suits their needs?

Jill paid an annual premium of $2,000 in total coverage for her homeowner's insurance, including $250,000 in damage coverage and $250,000 in liability coverage. Ten years into her policy, a friend fell off a ladder while working on the roof of her house and claimed $75,000 in medical expenses. Eleanor's insurance company paid the claim. Did the cost of the annual premiums outweigh the benefit of transferring the risk to the insurance company?

Your friend's job pays $10 per hour, and he works 40 hours per week. His tax rate is 20 percent. Assuming he works 50 weeks of the year, his yearly gross income is

What will happen if Jonathan is habitually late on loan payments?

Kendra wants to become a computer technician, but she has a great deal of debt. She makes a yearly budget and finds that her projected income and expenses do not balance. What should she do to immediately correct this imbalance?

Who would pay the most as a percentage of income under a progressive tax?

Which type of credit card carries the most risk?

To what does tax progressivity refer?

I got 3 wrong Do Not Pick These