ICEV review 1-25

How much would a $10,000 deposit earn after three years assuming a five percent annual compound interest rate?

$1,576.25

An individual has total assets of $120,00 and total liabilities of $80,000. What is he net worth?

$40,000

Which of the following is the process of paying off a loan over time with regular, equal payments ?

Amoritization

Which of the following is a summary of a bank accounts financial transactions which have occurred over a given period of time ?

Bank statements

Which of the following is an example of a tangible asset?

Bond

Which of the following is an itemized summary of the expected income and expenses for a defined period of time such as a month?

Budget

Which of the following loan/credit types require a lien on an asset of the borrower as a guarantee?

Collateralized loan

Which of the following is an example of revolving credit ?

Credit card

Which of the following allows customers to have their paycheck electronically deposited directly into their account ?

Direct deposit

Which of the following is a risk management technique which places a portfolio of assets into a wide different risk profiles ?

Diversification

Which of the following is the most common type of mortgage ?

Fixed-rate mortgage

Which of the following equations calculates net pay

Gross pay - deductions = net pay

Which of the following allows employees to set aside money before taxes in a personal account used for qualified health care expenses?

Health savings account

Which of the following is an example of a fixed asset?

House

Morgan and Jaron were recently married. They have a set goal to save up for a down payment to purchase a house in seven years. Which of the following types of financial hold has been set?

Intermediate-term goal

Which of the following types of tax deduction allowed the taxpayers to list certain expenses for the year such as property tax, medical expenses, charitable donations and unreimbursed business expenses?

Itemized deduction

Which loan should someone pay off first?

Loan with the highest interest rate

Which of the following is a type of mutual fund which invests only in low-risk short-term securities ?

Money market fund

Which of the following is a line of credit issued to customers to cover checks or debits which have exceeded the amount in their account ?

Overdraft protection

Which of the following is a portion of ownership in a single corporation?

Stock

Which of the following is an amount of money which can be offset against a tax liability owed to the government ?

Tax credit

Which of the following is the total amount of tax owed by an individual to a taxing authority such as the IRS?

Tax liability

Why might Joel want a shorter auto loan term?

The total cost of the loan will be lower

Which of the following types of interest rate fluctuates over time as market interest rates change?

Variable

Which of the following is an expense which can vary in amount from month to month ?

Variable expense