Sean relocates to a new town and chooses a house to lease. The property manager has requested Sean's credit report from Equifax.

Which of the following is a reason for the property manager to request Sean's credit report?

• The property manager wants to recommend an insurance policy to Sean based on his credit report.
• The property manager wants to revise Sean's credit score.
• The property manager wants to use Sean's Social Security number to obtain credit.
• The property manager wants to check Sean's eligibility to lease the house.

Nonrefundable tax credits can __________.

• increase the amount of tax owed by the tax payer
• cause the taxpayer's calculated tax to become negative
• cause the federal government to owe money to the taxpayer
• decrease the taxpayer's calculated tax to zero

Kama bought 20 shares, each costing $750. She decides to resell her shares for $17,250. She pays 16% commission.

Calculate Kama's income after selling her shares.

• Kama gains $510.
• Kama gains $2,250.
• Kama loses $2,250.
• Kama loses $510.

Sara is 27 years old and earns $70,000 a year. The formula for savings ratio is as follows:

Savings Ratio = Savings Income

How much should Sara save to be productive and achieve her desired savings ratio of 12%?

• $8,400
• $12,000
• $6,800
• $7,000

Luis, a small business owner, takes out a house loan of $130,000 at an annual interest rate of 7%. He pays a fixed monthly installment of $2,700 toward his loan repayment. Should Luis default on the loan, the creditor has placed a lien on his house as collateral.

Which of the following statements is true about Luis' situation?

• Luis is required to repay the principal amount but is free from paying any additional finance charges.
• The creditor can sell Luis' business should he default on the payments defined by the loan agreement.
• The creditor can sell Luis' house to recover any outstanding payments if Luis fails to repay the loan.
• Luis can expect to pay more than 7% interest on his loan, especially near the end of his loan term.

Grace opens a checking account and is writing a check to make a payment to her physician.

Which of the following should be filled by Grace on the check?

• The checking account number
• The check number
• The name of the business the physician works for
• The routing number

Kaylee lives with her 8-year-old daughter.

What condition should Kaylee fulfill to file her taxes under the Head of Household filing status?

• She should be unmarried.
• She must not claim her daughter as a dependent.
• She must be the only earning spouse.
• She must have one other person as a dependent.

Ben and Josh work for the same company. Ben receives his income from wages, while Josh receives a salary of $42,000 a year.

Which of the following is most likely to be true?

• Josh works only a set number of hours.
• Ben gets more paid vacation days and benefits than Josh does.
• If Josh works longer hours, he will earn more money.
• Ben is eligible for overtime pay.

If a business is unable to pay its debts, creditors can claim the assets of the business, but they cannot claim the nonbusiness assets of the owner.

For which type of business structure is this true?

• A general partnership
• An independent contractor
• A sole proprietorship
• A limited liability company

In what form do lenders make money?

• Capital gains
• Dividends
• Interest payments
• Insurance payments

Amir is single and earns $132,000 annually. After adjusted gross income and standard deductions, his taxable income is $120,000. The tax brackets and tax rates are as follows:

$0-$9,525: 10%

$9,525-$38,700: 12%

$38,700-$82,500: 22%

$82,500-$157,500: 24%

Calculate Amir's tax and his effective tax rate.

• Amir pays $31,680 in tax and has an effective tax rate of 24%.
• Amir pays $14,089.50 in tax and has an effective tax rate of 10.7%.
• Amir pays $28,800 in tax and has an effective tax rate of 24%.
• Amir pays $23,089.50 in tax and has an effective tax rate of 17.5%.

Which of the following payments is an example of secured debt?

• A bus ticket
• A pair of shoes
• Car loan payments
• Groceries

In which of the following scenarios would peer-to-peer payment apps be the most productive method of payment?

• In his job, Simon often needs to make instant money transfers to other people.
• Manuel wants to be able to withdraw more money than he has in his bank account without paying charges for it.
• Stephanie's expenses often exceed her income, and she frequently needs to make purchases on credit.
• Jane likes to keep track of her spending by using paper-based payment methods.

Which type of tax will Rema pay if she purchases a new dress from a department store?

• Sales tax
• FICA tax
• Property tax
• Payroll tax

Who among the following is most likely to have a large amount of credit card debt?

• Drew, who uses a reward credit card and pays off the balance every month
• Brik, who uses his credit card only during emergencies and has a debt of $150
• Joshua, who has an outstanding debt of $560 and pays the minimum payment every month
• Rita, who pays all her monthly expenses using her credit card and pays the loan amount in full at the end of each month