Personal finance review

Why do older people put their money in savings accounts?

• Because their parents did the same thing.

• They do not want a lot of investment risk.

• Because it helps them save money more easily.

• They earn a better rate than if they invested in long-term stocks.

What is the available balance of a bank account?

• The total amount of all checks deposited.

• The amount the bank allows the customer to use now.

• The total amount of all the checks written.

• The amount the bank allows the customer to borrow.

Since the late 1980s, the interests of _____ have decreased.

• credit cards

• savings accounts

• checking accounts

• mortgage loans

Which of these accounts offers highest interest rates?

• a checking account

• a money market account

• a savings account

• a credit account

What types of tax structures are U.S. corporate tax rates based on?

• graduated

• circular

• flat

• flat and graduated

Identify which of the following could theoretically be built from sales taxes:

• All of the answers are correct.

• Paying for the maintenance of a state jail

• Paying for standard state governmental operations

• Paying for the construction of a state hospital

Choose the best preparation method for a complex tax situation.

• The taxpayer should file the taxes yourself using an electronic method.

• The taxpayer should file the taxes himself using the downloadable forms on the IRS website.

• The taxpayer should hire a certified tax preparer.

• The taxpayer should allow the IRS to file it for him.

Which of the following is correct regarding the tax filing process?

• If you owe taxes, there is no impact of not paying them by April 15th.

• The electronic system of filing taxes, as it is new, takes a far longer time to process than by mailing your returns.

• All of the answers are correct.

• You can submit the forms electronically via an approved IRS vendor for free or some charge based on the type of return.

Valerie intends to pay off her furniture loan in 15 months. This is an example of which type of goal?

• Long term

• Financial target

• Short term

• Mid-range

Which of the following is true during a period of loose monetary policy?

• Banks have plenty of money to loan.

• Consumers tend to borrow less.

• Interest rates are high.

• Interest rates remain the same.