Question 3.3. (TCO 2) _____ can reduce taxable income. (Points : 1)

Portfolio income Tax credits Exclusions Passive income Earned income

Question 4.4. (TCO 2) Whenever an individual takes on a personal effort and receives money, this is reported as _____ income. (Points : 1)

passive earned portfolio excluded capital gains

Question 5.5. (TCO 2) George Washburn had earnings from his salary of $44,000, interest on savings of $800, a contribution to a traditional individual retirement account of $2,000, and dividends from mutual funds of $600. George's adjusted income (AGI) would be (Points : 1)

$43,400. $44,000. $45,400. $42,000. $42,800.

Question 6.6. (TCO 2) _____ can be calculated as a result of various items being subtracted from gross income, such as individual retirement account contributions and alimony payments. (Points : 1)

Adjusted gross income Taxable income Earned income Passive income Total exclusions

Question 7.7. (TCO 2) When filing your taxes, a set amount on which no taxes are paid is called _____. (Points : 1)

itemized deductions withholding an earned tax credit the standard deduction capital gains

Question 8.8. (TCO 2) Taxes owed can be reduced through _____. (Points : 1)

the standard deduction a tax credit an itemized deduction an exclusion an exemption

Question 9.9. (TCO 2) _____ would qualify a person for an exemption when computing taxable income. (Points : 1)

Mortgage interest A tax shelter A dependent Charitable contributions Passive income

Question 10.10. (TCO 2) Generally, the way most people pay federal income tax is by (Points : 1)

paying the total amount owed by April 15. filing quarterly tax payments. having amounts withheld from income. earning tax credits for various deductions.

Question 11.11. (TCO 2) If you expect interest rates will decline over the next few months, you should use a(n) _____ to maximize your earnings. (Points : 1)

regular savings account interest-bearing checking account 5-year certificate of deposit 6-month certificate of deposit money market fund

Question 12.12. (TCO 2) An example of a _____ deposit is a checking account. (Points : 1)

common time current loan demand

Question 13.13. (TCO 2) When profits are generated by a mutual savings bank, they will go to the (Points : 1)

creditors. loan applicants. stockholders. depositors. community in which it operates.

Question 14.14. (TCO 2) _____ are the major products offered by investment companies. (Points : 1)

Interest-bearing checking accounts Variable-rate loans Credit card accounts Savings bonds Mutual funds

Question 15.15. (TCO 2) One of the characteristics of a certificate of deposit is that it can have (Points : 1)

high interest-rate risk. low safety for savers. limited liquidity. a variable rate of return. no minimum deposit amount.