personal finance
A balance sheet shows your financial condition as of a certain point in time
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A company with low financial risk has little to no long-term debt
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A husband and wife together could give $20,000 to their niece with no gift tax liability even if the entire $20,000 came from the wife's checking account
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A lender will generally require mortgage insurance if the down payment is less than 20 percent
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A peril is a cause of loss
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A significant legal difference between a cooperative and a condominium is that the condominium owner normally holds a title to the property.
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A will may be invalid if the testator was under the influence of another person
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Actual cash value is defined as replacement cost minus depreciation
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Age 65 is typically the "normal retirement" age on retirement plans
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Anyone can legally prepare tax returns and charge a fee for the service
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Anyone with earned income can contribute to some type of IRA
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Bond prices are impacted by both the direction and magnitude of interest rate changes
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Cash value is an important component of whole life, universal life, and variable life but is never a component of term insurace
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Convenience and improved recored keeping are two advantages sited for on-line bill payment
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Credit unions typically pay higher rates of return on savings than banks and savings and loan associations
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Early termination clauses on an auto lease typically apply to cars that are stolen or totaled in an accident as well as when you just want to return the vehicle before the end of the lease
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Group health insurance premiums are usually lower than individual health insurance premiums.
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Health Maintenance Organizations (HMOs) provide pre-paid health care to participants
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IRA withdrawals can be made without tax penalty any time after you reach the age of 59 1/2
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If a buyer withdraws from a transaction without a valid reason after signing a sales contract, he typically loses his earnest money
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If you buy a zero coupon bond, you will receive no cash from the corporation until the bond matures.
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Increasing the deductible is likely to lower the premium on a comprehensive major medical policy
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Interest rate risk is greater from long-term bonds than for short-term bonds
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Intestacy results from dying without a valid will.
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Investing and speculating are two entirely different activities.
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It is extremely wise to contribute at least as much to a 401(k) plan as one's employer will match
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Life insurance death benefits are not subject to income taxes
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Miles has no retirement plan at work. Therefore, $2,000 contributed to his regular IRA will be tax deductible
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Most people are too conservative when investing their retirement funds
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Municipal bonds can be attractive investments, despite their lower interest rate, since their interest income is exempt from federal income tax
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One could expect to earn a higher rate of interest on a certificate of deposit than on a checking account
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One's average tax rate is typically lower than one's marginal tax rate.
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Personal property floaters provide increased coverage for jewelry and other collectable items at an additional premium
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Roth IRAs are the only IRAs that have the potential to produce tax-free earnings
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Russ and Lois got married December 30. Since they were single for most of the year, however, they can legally file as married taxpayers in the year of the wedding
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Steve was told that the government would be paying the interest on his stafford loan while he was in school, which is a subsidized loan
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Tax credits are dollar-for-dollar reductions in taxable income.
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The annual percentage yield (APY) formula otherwise called effective annual rate (EAR) considers compounding when determining an interest rate
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The basic purpose of insurance is to protect you from the results of accidental losses.
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The cost of a title search and title insurance are typically part of the closing costs on a housing transaction
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The cost of an annuity is greater for females than it is for males
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The fees on annuities tend to be higher compared to mutual funds
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The greatest fixed cost involved with owning an automobile is usually the monthly loan payments.
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The market price of a house is $125,000 and the homebuyer will borrow $100,000. Two points will equal $2,000.
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The money factor on an auto lease is similar to the interest rate on a loan
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The multiple of earnings approach to evaluating life insurance needs is simplistic but can be unreliable
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The need for additional life insurance can be determined by looking at the differences between available resources and family monetary needs
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With traditional whole life policies sold by an agent, sales commissions and marketing expenses account for between 20% and 25% of total premiums paid over the life of the policy
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You can deduct mortgage interest and property taxes on your home to reduce your federal income taxes only if you itemize deductions.
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Your gross estate is all property subject to federal tax at your death.
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gift giving can reduce estate tax liability
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the median household approaching retirement has less than 25% of the money needed to maintain their standard of living in retirement
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your eligibility and rate on a private loan is determined by your credit score
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All taxpayers have an equal probability of having their tax returns audited
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Asset management accounts, offered primarily by brokerage firms, are protected by the Federal Deposit Insurance Corporation
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Banks and other financial institutions insure the contents of the safe-deposit boxes
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Blue Cross provides hospital coverage and Blue Shield provides prescription pharmacy coverage
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In a Roth 401(k), contributions are tax deductible and withdrawals are taxable
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In a co-op, the buyer receives title to a unit and joint ownership of the common areas
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Low-balling is a sales technique where the salesperson quotes a low price for a car then tries to get you to purchase a different, more expensive vehicle
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MSRP stand for Manufacturer's Real Price
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Parent Loans (PLUS) are the responsibility of the parents and the rate is determined by their child's credit score
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Tax preparers must be licensed by either the state or federal government
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The best way to balance your budget is to increase borrowing.
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The down payment is typically the only substantial housing cost that must be paid at the time of the purchase
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The main reason most people invest is to shelter current income from taxes
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The money you put into Roth IRA is deductible from your taxable income in the year contributed
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The testator of a will with always receive property from the will
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The trade-in value of a car given to you by the dealer is always the most fair value
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Two prerequisites to investing are above average risk and a clear understanding of market direction
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You received a stock dividend this year instead of cash. This is taxable income.
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bugeting and record keeping are really the same activity
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interest rates on credit cards tend to be lower than most other forms of consumer credit
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the term "investment" refers to money placed in some medium where value and level of return are totally unpredictable
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