Financial Literacy Assessments 50 Q's V3

Financial advisors typically recommend an individual has enough savings to cover at least ______ months worth of bills.

• 12 to 18

• Three to six

• Six to eight

• One to two

Loans have ______ interest rates and repayment periods.

• Fixed

• Lower

• Time

• amoritized

Lower interest rates are ideal because it means a consumer will pay a ______ cost for borrowing the loan.

• Fixed

• Lower

• Time

• Amoritized

Individuals have a set period of ______ to repay the loan according to the loan agreement.

• Fixed

• Lower

• Time

• Amoritized

An individual who holds legal control of assets in a trust account is known as which of the following?

• Beneficiary

• Claimer

• Dependent

• Controller

Which of the following is NOT a savings on a taxpayer's liability?

• Tax breaks

• Tax credits

• Tax brackets

• Tax deductions

Which of the following types of tax deduction allows the taxpayer to list out all of his or her expenses for the year such as property tax, medical expenses, eligible charity donations, unreimbursed business expense?

• Itemized deduction

• Charity deduction

• Standard deduction

• Medical deduction

Which of the following is an amount of money a taxpayer can subtract from taxes owed to the government?

• Tax deductions

• Tax brackets

• Tax exemptions

• Tax credits

Which of the following types of tax credits are items directly deducted from the tax liability until it equals $0?

• Refundable tax credits

• Total refundable credits

• Nonrefundable tax credits

• Partially refundable credits

Which of the following are the most beneficial credits?

• Nonrefundable tax credits

• Partially refundable credits

• Refundable tax credits

• Total refundable credits