Exam 5: Mini Personal Finance

All of the following are deductions from taxable income EXCEPT ________.

You earned $20,000 in taxable income. The tax rate on the first $10,000 is 10%. The tax rate on income between $10,001 and $20,000, inclusive, is 20%. Your tax is ________.

Making a spending plan is an example of which step in financial planning?

Even if the initial credit card offer is a zero or very low percentage interest rate, that interest rate will MOST LIKELY ________ when the promotional period ends.

It is not at all necessary to revisit a financial plan periodically.

Planning to buy a house in ten years is an example of financial planning step 2: set financial goals.

What is a credit score?

An arrangement that pays for a hospital stay is ________ insurance.

Disability insurance protects your home and the contents inside.

What is the first step in developing a financial plan?

Tax rates progressively increase as income increases.

The value of a new car depreciates ________ percent almost as soon as it is driven off the dealer's lot.

If you are insuring an older car, it always makes financial sense to carry the cost of collision and comprehensive coverage.

At 3 percent interest, it will take ________ years to double an amount of money invested.

How can online resources and software help with money management?

You were in the bookstore and, at the last minute, decided to buy a pack of gum. The gum is MOST LIKELY an example of a(n)________ expense.

An arrangement that replaces the income of a person who dies is ________ insurance.

Special retirement AFTER-TAX savings accounts created by the government are ________.

To use a credit card wisely, pay off the balance in full every ________.

Monthly student loan payments are an example of a(n)________ expense.