FINA 2103 - Personal Financial Management and Planning- Test 2A 1. A security agreement is compulsory in loan agreements True 2. A recourse clause allows the lender to ganish wages .True b. False b. False S. Which results in lower interest charged? $1,000 balloon loan to be paid in 12 months or $1,000 paid in instalments? A. Balloon b. Instalment and are information costained in each credit report a. Trade lines/Tax information b. Inquiries/employment information c Inquiries/Trade lines and are two national credit buzeaus a. Equilon/Transunion b. Expedia/Equilon e. Equifax/Experian d. Expedia/Transunion 6. Paying off $50 on a $500 credit card balance with a 15% per annum interest rate will take to pay off 10 months b. 11 months c. 23 months d. 22 months 7. US Savings Bonds have a long maturity a. True b False a 9. How many months expense are needed for emergency funds? a. 1-3 months b. 2-5 months c. 6-9 months, d. 3-6 months 10. A check that the bank confirms has sufficient funds to pay and then proceeds to freeze those funds is a. Banker's check b. Cashier's check c. Manager's check d. Certified Check 11. What is the limit of insurance coverage for each individual's funds in deposit institutions? 12. Another name for portfolio income is 13. Taxes are due on 14. Tax returns can be amended 15. a $100,000 b$200,000 $250,000 d. $350,000 a. Investment income b. Passive Income c. Active Income d. Other Income a. March 15 b. May 15 c. April 15 d.June 15 e.October 15 after the original tax due date 2 years b. 3 years c. 5 years d. 7 years a. , is the purpose of minimizing unnecessary tax payments a. Tax planning b. Tax evasion c. Income planning d. None of the above 16. The tax liability for a single parent of one dependent child with a gross income of $46,250 and no itemized deductions is a. $3,850 b.$4,068 c. $4,473 d.$5,643 17. Banks are commonly referred to as Non-Deposit Type Financial Institutions a. True b. False 18. An advantage of a Money Market Deposit Account is it has eams a high interest rate a. True b. False An Asset Management Account is offered by banks and is insured 20. 19. a. True b. False Interest on Student Loans is an itemized deduction a. True b. False 21. A dependent on a tax return must be a US citizen only a. True b. False 22 Charitable contributions are deductions to arrive at AGI a.True 23. The best type of credit card user is b. False a. The credit user . The Convenience User .The convenience and credit user d. None of the above refers to your financial holdings or investment portfolio 24. In credit evaluation, 25. Cash Managem ent is deciding how much to keep in _-and where 6. The after-tax return of a fund that pays 6.5% interest for an individual with a marginal tax rate of 25% and 2% Which option is preferable, a 2% municipal bond or a 3.03% corporate bond for an investor in the 35% Capacity b. Character c.Capital d. None of the above a. a. Cash b. Liquid assets c. Money d. bank inflation is a. 4.875% b. 31.5% c.2875% d. 33.5% e, none of the above marginal tax bracket a, 2% , b. 3.03% A credit score is a digt number a. Four b. Three c. Two d. Five e. None of the above
