42. When you lease your apartment from a nonprofit corporation that owns the building and you own a share of the nonprofit corporation, you own a:

	a.	single-family home.
	b.	cooperative apartment.
	c.	condominium.
	d.	row house.
	e.	mobile home.

43. When your liabilities exceed your assets, you:

	a.	are bankrupt.
	b.	have growing equity.
	c.	have a positive net worth.
	d.	are insolvent.
	e.	have fewer real assets than investments?

44. Mike has a MasterCard with an annual fee of $25, an 18% interest, and a $1,000 credit limit. He always pays the total outstanding balance monthly. His most recent monthly statement lists the previous months payment, new charges in the current month totaling $1,500, and a $30 fee. The fee is most likely the result of:

	a.	interest charges.
	b.	his annual fee.
	c.	an over-the-limit fee.
	d.	a late payment.
	e.	transaction fees on purchases.

45. The best approach to solve the problem of an annual budget deficit is to:

	a.	liquidate more assets than required to meet the budget shortfall for the year.
	b.	borrow funds on credit cards.
	c.	reduce flexible expenditures on nonessential items.
	d.	reduce fixed expenses.
	e.	reduce high-priority expenses on the budget.

46. Professional financial planners:

	a.	provide services on a fee or commission basis.
	b.	provide services to wealthy investors only.
	c.	set the financial goals of retired investors.
	d.	make financial decisions for investors.
	e.	are most effective during retirement years.

47. A cash surplus on an income and expense statement prepared on a cash basis indicates that:

	a.	the net worth is equal to zero.
	b.	investments are less than the cash balance.
	c.	the payments on debts are not met.
	d.	the total expense is less than the total income.
	e.	income and expense are equal.

48. Ben and Jack both earned $60,000 this year. Ben (age 30) is married with two children, and Jack (age 68) is single with no dependents. Which of the following is true regarding the amount of Social Security taxes they will have to pay?

	a.	They will pay the same amount of Social Security taxes.
	b.	Ben will pay less Social Security taxes because he is married.
	c.	Ben will pay less Social Security taxes because he has children.
	d.	Jack will pay less Social Security taxes because he is single.
	e.	Jack will pay less Social Security taxes because he is over the age of 65.

49. The federal government receives a majority of its revenue from _____ tax.

	a.	sales
	b.	property
	c.	excise
	d.	income
	e.	estate

50. A tax credit could result from:

	a.	owning a home.
	b.	adopting a child.
	c.	charitable contributions.
	d.	investing in municipal bonds.
	e.	dental expenses.