iCEV final review

Which loan should someone payoff first?

• Loan with the lowest interest rate

• Loan with the largest balance

• Loan with the highest interest rate

• Loan with the smallest balance

Which of the following is an example of a tangible asset?

• Copyright

• Bond

• Patent

• Trademank

Which of the following allows employees to set aside money before taxes in a personal account used for qualified health care expenses?

• 401K

• Health savings account

• Life insurance

• Flexible spending account

Which of the following is an itemized summary of the expected income and expenses for a defined period of time such as a month?

• Balance sheet

• Net worth

• Equity

• Budget

Which of the following is the process of paying off a loan over time with regular, equal payments?

• Amortization

• Collateral

• Revolving payments

• Capacity

An individual has total assets of $120,000 and total liabilities of $80,000. What is his net worth?

• $30,000

• - $30,000

• $40,000

• - $40,000

Which of the following is a risk management technique which places a portfolio of assets into a wide variety of investments with different risk profiles?

• Investment

• Compounding

• Appreciation

• Diversification

Which of the following is a type of mutual fund which invests only in low-risk short-term securities?

• High-yield bank account

• Certificate of deposit

• Money market fund

• 401K plan

Which of the following allows customers to have their paycheck electronically deposited directly into their account?

• Deposit slip

• Direct deposit

• Online payment

• Electronic withdrawal

Which of the following types of tax deductions allows the taxpayer to list certain expenses for the year such as property tax, medical expenses, charitable donations and unreimbursed business expenses?

• Medical deduction

• Itemized deduction

• Charitable deduction

• Standard deduction