QUESTION 21

Income that is offset by alimony payments and other income offsets

		Gross Income
		Standard Deduction
		Adjusted Gross Income
		Personal Exemption

2 points

QUESTION 22

A fixed amount that can be deducted from adjusted gross income (AGI) to determine taxable income

		Standard deduction
		Average tax rate
		Itemized deduction
		Marginal tax rate

2 points

QUESTION 23

Filing taxes requires you to address which of the following topics?

		Filing status
		Gross income
		Exemptions
		All of the above

2 points

QUESTION 24

"Opportunity Cost"; is what you forego when you choose one thing over another

True

False

2 points

QUESTION 25

If finance charges are not assessed on new credit card transactions during the period between the posting date and the due date, this period is called the ___ period

		free
		grace
		repayment
		convenience

2 points

QUESTION 26

Which of the following would be considered smart financial planning?

		turn all your income tax planning over to someone else
		withhold too much income in order to receive a refund next year
		ignore the impact of income taxes in your personal financial planning
		contribute to your employer-sponsored 401k retirement plan at least up to the amount of the employer's matching contribution

2 points

QUESTION 27

Occurs if you do not put at least 20% down on your home

		Capital Loss
		Depreciation
		Capital Gain
		Private Mortgage Insurance (PMI)

2 points

QUESTION 28

The type of mortgage where the interest rate can fluctuate up and down according to an index of interest rates is the _______ mortgage.

		renegotiable-rate
		adjustable-rate
		graduated-payment
		shared-appreciation

2 points

QUESTION 29

My adjusted gross income last year was $32,874. I had $3,172 in out-of-pocket medical expenses last year. My medical expense deduction will be..

		Medical expenses cannot be deducted
		$3,172
		$706
		$2,515

2 points

QUESTION 30

_________ risk is the potential hazard of converting an investment into cash

		Credit
		Interest rate
		Liquidity
		Asset