finance missed questions

Homeowner's may be allowed to deduct the following on their taxes

mortgage interest

Your average tax rate is your

tax liability / taxable income

______income is subject to federal taxes

taxable

A real estate contract will include

the amount you are willing to pay for the property

T/F: A PITI payment is composed of principle, interest, real estate taxes, and insurance

true

T/F: A personal liability umbrella policy typically includes coverage for auto related liability losses in excess of the limits purchased in a personal auto policy

true

T/F: ATM transactions require the use of a pin

true

T/F: As a homeowner, the federal govt may allow you to deduct interest expenses and taxes paid on the property

true

T/F: Being late on credit payments only 2/3 times a year will label you as a late payer

true

T/F: Capitalized cost on an auto lease is the same as the amount of the price that is being financed

true

T/F: Earnings on 529 college savings plans can be tax free when used for qualifying college education expenses

true

T/F: Having a checking account tells a creditor that you have some experience in managing your own funds

true

T/F: If your insurance company makes a payment to you, subrogation is the right of the company to collect form the person causing the accident or from his/her insurance company

true

T/F: Investing and speculating are two entirely different activities

true

T/F: Mortgage interest and paid home property taxes are both itemized deduction items

true

T/F: The cash value of a whole life insurance policy can be used a source of loan collateral

true

T/F: The money factor on an auto lease is similar to the interest rate on a loan

true

T/F: Townhome, condominium, and co-op owners can deduct real estate taxes and mortgage interest on their federal income taxes

true

T/F: low-balling is a sales technique where the salesperson quotes a low pricee for a car to get you to make an offer, and negotiates the price upward prior to signing the agreement

true

If you invest 100 at 8% for one year, compounded semiannually, at the end of the year your balance will be

108.16

Michael and Sandy purchased a home for 100,000 five years ago. If it appreciated 6% annually, what is it worth today?

133,823

Bob is 22 years old and wants to start saving now for retirement in 43 years. Of these choices, where should Bob put most of his money for this long term goal?

A mutual fund that invests in stocks

The 80% coinsurance clause in a homeowner's policy would cause a reduction in the claim payment for the covered loss to the dwelling of $30,000 in which of the following cases:

Dwelling limit 75,000; replacement cost 100,000; cash value 90,000.

_____ and ______ are often paid as part of one's house payment and held in an escrow account

Insurance ; real estate taxes

If interest rates rise, what will typically happen to bond prices?

They will fall

T/F: money market deposit accounts are insured by the FDIC if purchased at an insured bank

True

When you buy 300 shares of a company you have purchased .....

a round lot

A market order would be transacted for the

best price when the order is entered

If you buy the stock of a new company you...

can lose all of the money you have invested

At the end of your lease period, you intend to turn in the car, and you will not pay extra at that time based on the residual value of the car. You have a ___________ lease

closed-end

T/F: Bondholders will receive interest payments after the stockholders receive dividends

false

T/F: Most states generate the majority of their revenues from property taxes

false

T/F: Owning common stock represents a debt investment

false

T/F: Paying only the minimum payment each time on a credit card usually enables one to pay off the balance fairly quickly

false

T/F: Preferred stocks are the common stocks of ultra-blue chip companies

false

T/F: Property insurance is meant to protect property owners from two basic types of exposures, physical loss of property and loss through depreciation

false

T/F: Security deposits are controlled by the tenant

false

buying a single company's stock usually provides a safer return than a stock mutual fund

false

Your income tax withholding is dependent on

income level and number of withholding allowances