GBU Study Guide Exam 1#

For 2021, single people received a standard deduction of:

12,250

Most of the information in your credit file may be reported for only ___ years

7

Most of the information in your credit file may be reported for only how many years?

7

____ is a benefit on which you pay no income taxes.

A Tax- Exempt benefit

Credit bureaus obtain data from which of the follow?

Banks, Finance Companies, Credit card Companies

____ is defined as a commitment to a profession that requires continued training.

Career

Which of the following is organized as a corporation and owned by stockholders?

Commercial banks

A tax____ is an amount subtracted directly from the amount of taxes owed.

Credit

Present value calculation involves

Discounting

Which of the following is included in gross income?

Earned Income

What type of tax is imposed on the value of an individual's property at the time of his or her death?

Estate

The rule of the 78s formula dictates that you pay less interest at the beginning of a loan.

False

Which of these is true in Series EE U.S. Savings Bonds?

Federal income tax on earnings may be deferred until bonds are redeemed

A personal cash flow statement presents

Income and Payments

Evaluating risk associated with making must financial decisions is difficult because of what?

Inflation risks, liquidity risks, Interest rate risk

An example of closed-end credit is

Installment sales credit

Which component of financial planning deals with buying stocks, real estate, and mutual funds?

Investing

Money received in the form of dividends or interest is commonly called:

Investment income

What kind of audit requires a taxpayer to visit an IRS office to clarify some aspect of his or her tax return?

Office audit

Career choices require periodic evaluation of trade-offs related to which of the following?

Personal, Economic, Social

Which of the following would be considered a fixed expense?

Rent

The storage of funds for future use is a purpose of ____, which includes savings accounts and certificates of deposit

Time deposits

Which of the following goods or services is subject to an excise tax?

Tires, Gasoline, Cigarettes

Itemized deductions are expressed that a taxpayer is allowed to deduct from adjusted gross income?

True

Liquid assets refer to:

cash and other items that are easily converted to cash

Installment cash credit is a:

direct loan of money for personal purposes

The time value of money refers to:

increases in an amount of money as a result of interest earned

Bankruptcy, the debtor

is required to draw up a petition listing his or her assets and liabilities

The best way to maintain your credit standing is to:

repay your debt on time

Opportunity cost refers to:

trade-offs associated with money management decisions