QUESTION $1$

According to Choose FI the average American saves $\_\_\_\_\%$ of their income.

a$.$

$3\%$

b$.$

$5\%$

c$.$

$7\%$

d$.$

$10\%$

$2\mathrm{.}5$ points

QUESTION $2$

According to Choose FI a $$valuist$$ is

a$.$

the same as an optimist.

b$.$

someone who shops based upon value rather than price.

c$.$

someone who spends their time and money consistently with their values.

d$.$

someone who lives frugally by never buying the most expensive items.

$2\mathrm{.}5$ points

QUESTION $3$

According to Choose FI$,$ to reach FI in $25$ years would require a savings rate of

a$.$

$15\%$ of income

b$.$

$25\%$ of income

c$.$

$35\%$ of income

d$.$

$50\%$ of income

$2\mathrm{.}5$ points

QUESTION $4$

In the Pareto Principle,

a$.$

$20\%$ of actions will account for $80\%$ of outcomes

b$.$

$80\%$ of actions will account for $20\%$ of outcomes

c$.$

$20\%$ interest will provide $80\%$ of FI objectives

d$.$

$20\%$ down will lead to $80\%$ equity

$2\mathrm{.}5$ points

QUESTION $5$

According to Edmunds.com, a brand new car after one year of ownership

is worth only about half of what you paid for it$.$

loses about $20\%$ of its value.

is always cheaper than leasing.

is likely to hold its value if it is foreign made.

$2\mathrm{.}5$ points

QUESTION $6$

The most important scenario to insure for is

a$.$

Low probability, large impact

b$.$

Low probability, small impact

c$.$

High probability, small impact

d$.$

high probability, large impact

$2\mathrm{.}5$ points

QUESTION $7$

Income tax rates on realized long$-$term investment gain are

a$.$

Usually the same as ordinary income tax rates.

b$.$

Usually higher than ordinary income tax rates.

c$.$

Usually lower than ordinary income tax rates.

d$.$

The same as realized short$-$term investment gain tax rates.

QUESTION $8$

According to Choose FI$,$ tax loss harvesting is

a$.$

the same as tax gain harvesting.

b$.$

purposefully realizing investment losses in taxable accounts.

c$.$

selling every stock that returns to a net$-$zero yield.

d$.$

illegal.

QUESTION $9$

In homeowners$$ insurance coinsurance is

a$.$

a clause specifying a minimum $\%$ of home value be insured for replacement cost

b$.$

the amount the homeowner must pay for a loss before insurance pays

c$.$

the way a claim is divided between two insurance companies when both insure a home

d$.$

what homeowner pays before insurance kicks in

QUESTIN $10$

All of the following are considered activities of daily living except

a$.$

bathing

b$.$

reading

c$.$

eating

d$.$

dressing