FIN 101 Final Exam
The greatest fixed cost involved with owning an automobile is usually the auto insurance payments
False
Credit report is routinely used to predict credit worthiness
True
Saving is the preferred way to provide for financial emergencies
True
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
True
IRA withdrawals can be made without paying tax penalty any time after you reach the age of 59 1/2.
true
If you are eligible to receive a tax refund, you will have to file a tax return to get the refund.
true
If you buy a zero coupon bond, you will receive no cash from the corporation until the bond matures.
true
One could expect to earn a higher rate of interest on a certificate of deposit than on a checking account
true
One's average tax rate is typically lower than one's marginal tax rate.
true
The greatest fixed cost involved with owning an automobile is usually the monthly loan payments.
true
The market price of a house is $125,000 and the homebuyer will borrow $100,000. Two points will equal $2,000.
true
You can deduct mortgage interest and property taxes on your home to reduce your federal income taxes only if you itemize deductions.
true
a balance sheet shows your financial condition as of certain point in time
true
a lender will generally require mortgage insurance if the down payment is less than 20 percent
true
a significant legal difference between a cooperative and a condominium is that the condominium owner normally holds a title to the property
true
anyone can legally prepare tax returns and charge a fee for that service
true
convenience and improved record keeping are two advantages sited for on-line bill payment
true
credit unions typically pay higher rates of return on savings than banks and savings and loan associations
true
Paying only the minimum payment each time on a credit card usually enables one to pay off the balance fairly quickly.
False
Alimony received is included in gross income for the receiver and a tax deduction for they payer
True
Assets purchased on credit should be included on the asset side of the balance sheet.
True
The federal personal income tax is a progressive tax
True
The income and expenditures statement provides a measure of financial performance over a period of time
True
The most common method used by lenders to apply finance charges to credit cards is the average daily balance including new purchases method
True
The purpose of a credit report is to evaluate the kind of risk you pose to the lender
True
Using time value of money is important when planning for long-term goals
True
It is safe, and often required, to give your social security number as a form of identification when using a credit card
false
Low-balling is a sales technique where the salesperson quotes a low price for a car to get you to purchase a different, more expensive vehicle.
false
Tax preparers must be licensed by either the state of federal government
false
all taxpayers have an equal probability of having their tax returns audited
false
asset management accounts, offered primarily by brokerage firms, are protected by the federal deposit insurance corporation
false
banks and other financial institutions insure the contents of safe-deposit boxes
false
budgeting and record keeping are really the same activity
false
in a co-op, the buyer receives title to a unit and joint ownership of the common areas
false
interest rates on credit cards tend to be lower than most other forms of consumer credit
false
the best way to balance your budget is to increase borrowing
false
the down payment is typically the only substantial housing cost that must be paid at the time of the purchase
false
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
true
gasoline is a variable cost of automobile ownership
true
if a buyer withdraws from a transaction without s valid reason after signing a sales contract, he typically loses his earnest money
true
tax credits are dollar-for-dollar reduction in taxable income
true
terminating a car lease before expiration is often difficult and costly
true
the annual percentage yield (APY) formula otherwise called effective annual rate (EAR) considers compounding when determining an interest rate
true
the cost of a title search and title insurance are typically part of the closing costs on a housing transaction
true
the higher the tax bracket you are in, the more attractive the purchase of municipal bonds becomes
true
the money factor on an auto lease is similar to the interest rate on a loan
true
you can deduct mortgage interest and property taxes on your home to reduce your federal income taxes only if you itemize deductions
true
you should not talk with the car dealer about a trade in until after you have negotiated the final price on the car you are purchasing
true