Question 1

When Don retires, his transportation expenses will likely increase.

Accepted Answer

A) True 
 B)False

Question 2

Intestate is

Accepted Answer

A)  The process of validating a will. 
B)  A written will. 
C)  A type of trust. 
D)  Dying without a valid will. 
E)  The selection of a trust. 
A)  The process of validating a will. 
B)  A written will. 
C)  A type of trust. 
D)  Dying without a valid will. 
E)  The selection of a trust.

Question 3

A holographic will has a holographic seal to prove its authenticity.

Accepted Answer

A) True 
 B)False

Question 4

If a will is found to be invalid, the result is called in-probate.

Accepted Answer

A) True 
 B)False

Question 5

When an employer promises to set aside a certain amount of money for each employee each year, it has set up a

Accepted Answer

A)  Defined-benefit plan. 
B)  Money-purchase plan. 
C)  Profit-sharing plan. 
D)  Salary-reduction plan. 
E)  Stock bonus plan. 
A)  Defined-benefit plan. 
B)  Money-purchase plan. 
C)  Profit-sharing plan. 
D)  Salary-reduction plan. 
E)  Stock bonus plan.

Question 6

A handwritten will is known as a(n)

Accepted Answer

A)  Formal will. 
B)  "I love you" will. 
C)  Holographic will. 
D)  Ordinary will. 
E)  Statutory will. 
A)  Formal will. 
B)  "I love you" will. 
C)  Holographic will. 
D)  Ordinary will. 
E)  Statutory will.

Question 7

Annabelle works at Acme Cleaning Company. When she retires, her employer's health insurance plan and Medicare should cover all of her medical expenses.

Accepted Answer

A) True 
 B)False

Question 8

Eight years ago, Thomas began investing in his Roth IRA. He is now purchasing his first home. He may withdraw some money from his Roth IRA tax-free and penalty-free for this purchase.

Accepted Answer

A) True 
 B)False

Question 9

Candice is updating her estate planning and wants to write a legal document that will allow all of her assets to go to her spouse except for a certain amount that will be set up in a trust. The trust (plus interest) can provide her spouse lifelong income that will not be taxed. She is writing a(n)

Accepted Answer

A)  Exemption trust will. 
B)  Guardian will. 
C)  Simple will. 
D)  Stated amount will. 
E)  Traditional marital share will. 
A)  Exemption trust will. 
B)  Guardian will. 
C)  Simple will. 
D)  Stated amount will. 
E)  Traditional marital share will.

Question 10

A legal arrangement that helps manage the assets of your estate for your benefit or that of your beneficiaries is called a

Accepted Answer

A)  Formal will. 
B)  Trust. 
C)  Holographic will. 
D)  Guardian. 
E)  Statutory will. 
A)  Formal will. 
B)  Trust. 
C)  Holographic will. 
D)  Guardian. 
E)  Statutory will.

Question 11

Robert's wife Fiona does not work, and they file a joint tax return. Robert can contribute on behalf of Fiona into a

Accepted Answer

A)  401(k) plan. 
B)  Regular IRA. 
C)  Roth IRA. 
D)  SEP plan. 
E)  Spousal IRA. 
A)  401(k) plan. 
B)  Regular IRA. 
C)  Roth IRA. 
D)  SEP plan. 
E)  Spousal IRA.

Question 12

Bruce and Christopher are both retiring from Best Conditioning Company. They both should have the same amount of money in their retirement funds regardless of the lifestyle they expect during retirement.

Accepted Answer

A) True 
 B)False

Question 13

What steps should be taken in retirement planning?

Accepted Answer

A)  Avoid life insurance. 
B)  Estimate preretirement living expenses. 
C)  Exceed budget amounts for spending. 
D)  Conduct a financial analysis and estimate retirement living expenses. 
E)  All of these are correct. 
A)  Avoid life insurance. 
B)  Estimate preretirement living expenses. 
C)  Exceed budget amounts for spending. 
D)  Conduct a financial analysis and estimate retirement living expenses. 
E)  All of these are correct.

Question 14

This trust is designed to allow married couples to take full advantage of the federal estate tax exemption.

Accepted Answer

A)  Credit-shelter trust 
B)  Revocable trust 
C)  Irrevocable trust 
D)  Living trust 
E)  Testamentary trust 
A)  Credit-shelter trust 
B)  Revocable trust 
C)  Irrevocable trust 
D)  Living trust 
E)  Testamentary trust

Question 15

This tax is only imposed by state governments.

Accepted Answer

A)  Estate tax 
B)  Gift tax 
C)  Inheritance tax 
D)  Trust federal income tax 
E)  Will tax 
A)  Estate tax 
B)  Gift tax 
C)  Inheritance tax 
D)  Trust federal income tax 
E)  Will tax

Question 16

A traditional marital share will leaves everything to your spouse.

Accepted Answer

A) True 
 B)False

Question 17

A holographic will is legal in all states.

Accepted Answer

A) True 
 B)False

Question 18

If you die intestate, your property will be distributed according to your wishes.

Accepted Answer

A) True 
 B)False

Question 19

Lawrence is self-employed and wants to establish the simplest type of retirement plan. He should set up a

Accepted Answer

A)  401(k) plan. 
B)  Regular IRA. 
C)  Roth IRA. 
D)  SEP plan. 
E)  Spousal IRA. 
A)  401(k) plan. 
B)  Regular IRA. 
C)  Roth IRA. 
D)  SEP plan. 
E)  Spousal IRA.

Question 20

If you save on a regular basis, you not have money to pay your bills, make major purchases, meet your living expenses during your retirement, and cope with emergencies.

Accepted Answer

A) True 
 B)False

When Don retires, his transportation expenses will likely increase.

Intestate is

A holographic will has a holographic seal to prove its authenticity.

If a will is found to be invalid, the result is called in-probate.

When an employer promises to set aside a certain amount of money for each employee each year, it has set up a

A handwritten will is known as a(n)

Annabelle works at Acme Cleaning Company. When she retires, her employer's health insurance plan and Medicare should cover all of her medical expenses.

Eight years ago, Thomas began investing in his Roth IRA. He is now purchasing his first home. He may withdraw some money from his Roth IRA tax-free and penalty-free for this purchase.

Candice is updating her estate planning and wants to write a legal document that will allow all of her assets to go to her spouse except for a certain amount that will be set up in a trust. The trust (plus interest) can provide her spouse lifelong income that will not be taxed. She is writing a(n)

A legal arrangement that helps manage the assets of your estate for your benefit or that of your beneficiaries is called a

Robert's wife Fiona does not work, and they file a joint tax return. Robert can contribute on behalf of Fiona into a

Bruce and Christopher are both retiring from Best Conditioning Company. They both should have the same amount of money in their retirement funds regardless of the lifestyle they expect during retirement.

What steps should be taken in retirement planning?

This trust is designed to allow married couples to take full advantage of the federal estate tax exemption.

This tax is only imposed by state governments.

A traditional marital share will leaves everything to your spouse.

A holographic will is legal in all states.

If you die intestate, your property will be distributed according to your wishes.

Lawrence is self-employed and wants to establish the simplest type of retirement plan. He should set up a

If you save on a regular basis, you not have money to pay your bills, make major purchases, meet your living expenses during your retirement, and cope with emergencies.

Personal Financial Planning in Action

Money Management Skills

Taxes in Your Financial Plan

Financial Services: Saving Plans and Payment Accounts

Consumer Credit: Advantages, Disadvantages, Sources, and Costs

Consumer Purchasing Strategies and Wise Buying of Motor Vehicles

Selecting and Financing Housing

Home and Automobile Insurance

Health and Disability Insurance

Financial Planning With Life Insurance

Investing Fundamentals and Bonds

Investing in Stocks

Investing in Mutual Funds

Filters

Exam 14: Starting Early: Retirement and Estate Planning

When Don retires, his transportation expenses will likely increase.

Intestate is

A holographic will has a holographic seal to prove its authenticity.

If a will is found to be invalid, the result is called in-probate.

When an employer promises to set aside a certain amount of money for each employee each year, it has set up a

A handwritten will is known as a(n)

Annabelle works at Acme Cleaning Company. When she retires, her employer's health insurance plan and Medicare should cover all of her medical expenses.

Eight years ago, Thomas began investing in his Roth IRA. He is now purchasing his first home. He may withdraw some money from his Roth IRA tax-free and penalty-free for this purchase.

Candice is updating her estate planning and wants to write a legal document that will allow all of her assets to go to her spouse except for a certain amount that will be set up in a trust. The trust (plus interest) can provide her spouse lifelong income that will not be taxed. She is writing a(n)

A legal arrangement that helps manage the assets of your estate for your benefit or that of your beneficiaries is called a

Robert's wife Fiona does not work, and they file a joint tax return. Robert can contribute on behalf of Fiona into a

Bruce and Christopher are both retiring from Best Conditioning Company. They both should have the same amount of money in their retirement funds regardless of the lifestyle they expect during retirement.

What steps should be taken in retirement planning?

This trust is designed to allow married couples to take full advantage of the federal estate tax exemption.

This tax is only imposed by state governments.

A traditional marital share will leaves everything to your spouse.

A holographic will is legal in all states.

If you die intestate, your property will be distributed according to your wishes.

Lawrence is self-employed and wants to establish the simplest type of retirement plan. He should set up a

If you save on a regular basis, you not have money to pay your bills, make major purchases, meet your living expenses during your retirement, and cope with emergencies.

Personal Financial Planning in Action

Money Management Skills

Taxes in Your Financial Plan

Financial Services: Saving Plans and Payment Accounts

Consumer Credit: Advantages, Disadvantages, Sources, and Costs

Consumer Purchasing Strategies and Wise Buying of Motor Vehicles

Selecting and Financing Housing

Home and Automobile Insurance

Health and Disability Insurance

Financial Planning With Life Insurance

Investing Fundamentals and Bonds

Investing in Stocks

Investing in Mutual Funds

Filters