EPF Final Exam

Front

What is the primary factor that gives U.S. currency its value?

Back

Full faith and credit of the U.S. government

Front

Which of the following is considered a mandatory payroll deduction? Health insurance contributions, 401(k) contributions, Federal income tax, Life insurance premiums

Back

Federal income tax

Front

What is the recommended amount for an emergency fund?

Back

Three to six months of income

Front

How does the Rule of 72 work?

Back

It estimates years to double money at a given interest rate.

Front

During periods of inflation, who typically suffers the most financially? Options: Business owners, Stock market investors, Fixed-income individuals, Real estate investors

Back

Fixed-income individuals

Front

What is the primary advantage of a Roth IRA compared to a Traditional IRA?

Back

Tax-free withdrawals in retirement

Front

Which factor most significantly influences lifetime earning potential? Options: Geographic location, Market conditions, Educational level, Family connections

Back

Educational level

Front

What is the best first step in college financial planning? Options: Taking out private loans, Applying for scholarships, Completing the FAFSA, Opening a savings account

Back

Completing the FAFSA

Front

What is net worth?

Back

Assets minus liabilities

Front

Which retirement income source is funded by FICA taxes?

Back

Social Security