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