Practice quiz

Chris is in the 25% tax bracket. he realizes he can claim a tax credit of 200. how much will that save him on his taxes

200

in which stages of counseling would a counselor give an overview of the client-counselor relationship

initiating

what type of question is effective at getting to a clients deeper feelings about the information being discussed

level II probes

Divide monthly living expenses into monetary (liquid) assets to arrive at the

liquidity ratio

specific expenses that can be subtracted from adjusted gross income to reduce taxable income are called

itemized deductions

which of the following learning styles is correctly matched with its "common" keyword: auditory-seeing, visual-doing, kinesthetic-seeing, kinesthetic-doing

kinesthetic- doing

Connor has chosen a high-deductible health insurance program through his employer. He tends to not use insurance much in any given year. which of the following would most help him with medical expenses he does have? 1-a cafeteria plan 2-a flexible savings account 3-a health maintenance organization 4-a health savings account

a health savings account

in which of the stages of counseling are goals and strategies reevaluated?

acting

divide annual debt repayments by gross income to arrive at the----

debt to income ratio

Carlos, a financial counselor, is talking to his client, Amy. When Carlos suggested that Amy might eat out less to reduce her expenses, Amy says she could probably do that. As she says that, she sits up straighter, folds her arms, and her eyebrows comes together. What should Carlos address at this time?

nonverbal clues

which of the following would be a process goal? 1-establish a facilitative counseling relationship 2-reduce credit card debt 3-buy a home 4-improve a credit score

1-establish a facilitative counseling relationship

which of the following should a counselor do at the beginning of a counseling session? 1-inform the client of the terms of the counselor-client relationship. 2-help the client write appropriate goals 3- determine a clients current financial situation 4-help the client identify personal resources

1-inform the client of the terms of the counselor-client relationship

which of the following statements about pacing is true: 1-pacing is matching or mirroring another persons behavior 2-nonverbal pacing is an abnormal behavior and should be avoided. 3-paraphrasing is an insulting form of pacing and should only be used selectively 4-pacing will not change the clients learning style.

1-pacing is matching or mirroring another persons behavior.

paul is applying for a loan and the bank asked him for some financial information. what is his net worth monthly take home pay- 3200 monthly living expenses- 2940 checking account balance- 2300 visa credit card balance- 450 money market account- 3600 home value- 255,000 mortgage loan balance- 140800 automobile market value- 20,000 cash on hand- 775 auto loan balance- 10,700

129725

Anya has written out the following strategies for accomplishing her goals. which one has all the requirements for a well stated strategy? 1- I will decrease my debt and save 2-for 3 months i will eat out only once a week to save money that can then be applied to my credit card debt 3- i will put 10%of my take home pay on a money order, take the money order to the mortgage company and put some of it as extra on my payment, and go to any other businesses where i have debt to put extra until the 10% is gone. 4- i will have my roommate reduce the amount of electricity he is using

2-for 3 months i will eat out only once a week to save money that can then be applied to my credit card debt

which of the following includes all the criteria for an effective goal? 1-get a raise by december 31st and put the extra income into savings . 2-pay off my auto loan early by adding an extra 50 dollars each month to the payment 3- have a good retirement 4- stop using my credit card

2-pay off my auto loan early by adding an extra 50 dollars each month to the payment

closure is a logical consequence after which of the following? 1-the client saved enough for retirement 2-the client has started working on his/her action plan 3-the client believes he or she can use the same process on his or her own that was used in counseling 4-the counselor believes the client is ready

3-the client believes he or she can use the same process on his or her own that was used in counseling

which of the following statements is a rule of brainstorming 1- clarify all ideas, 2-censor all ideas, 3- use other peoples ideas, 4- assign names to ideas

3-use other peoples ideas

most financial planning experts recommend that people have a liquidity ratio of at least ---

3.0

which of the following is more likely to create a welcoming and private space for clients? 1-an open room with a lot of windows near the receptionist desk 2-a room with bright colors and a large rectangular table down a long hallway 3- an office with metal chairs of different sizes and counter space for working that is located up two flights of stairs 4- a room with a round table and earth tone paint that is a little ways off from the main entrance

4- a room with a round table and earth tone paint that is a little ways off from the main entrance

Manuel has just finished a counseling session. which of the following is a role of a counselor at this point, going into the acting stage? 1- build rapport 2-help the client evaluate the possible strategies to determine the best option 3-assist the client in setting measurable goals 4-check in with the client later to monitor progress towards goals

4- check in with the client later to monitor progress towards goals

how long would it take an investment of $6000 at 9% interest double, using the rule of 72?

8 years

the disclosed standardized rate of interest paid on accounts at depository institutions is the

annual percentage yield (apy)

which of the learning styles is best identified with the statement, "she never listens to me"?

auditory

a -------------- is a type of employee benefit plan where employees choose their benefits from a list of taxable cash and one or more qualified nontaxable benefits.

cafeteria plan

If Annie wanted to know where her money came from and where it went over the course of the past month or year, she would compile a -----

cash flow statement

a ----- is an interest bearing savings instrument that requires people to deposit money for a fixed amount of time

certificate of deposit

the government's most commonly cited measure of the cost of living for Americans is the -----

consumer price index

which of the following provides a dollar for dollar reduction in taxes 1- adjustments 2-deductions 3-exemption 4-credits

credits

the amount of take home pay remaining after all deductions are withheld for taxes, insurance, union dues and other items is referred to as a persons-------income

disposable

which term is the general term for directly transferring funds by electronic means from a consumers account at a financial institution to another account using data-processing computers and/or telecommunications

electronic funds transfer

a monthly health insurance premium would be an example of an----

fixed expense

which of the following is the term used for employee-paid, employer-sponsored accounts for medical and dependent care which are paid with pre-tax dollars? 1-flexible spending accounts 2- bonus accounts 3-employee benefits 4- fringe benefits

flexible spending accounts

a budget should be based on-----

goals

the statistic that measures the value of all goods and services produced by workers and capital located in the united states.

gross domestic product

porter is having a hard time meeting expenses each month. which of the following tax management strategies might be helpful for him? 1-e-file a return 2-increases tax withholding allowances 3-take the standard deduction 4-change the filling status

increase tax withholding allowances

Of the following, which is the best indicator of where the economy is headed over the next year or so? 1-real inflation rate 2-gross domestic product 3-index of leading economic indicators 4- federal funds rate

index of leading economic indicators

the tax rate applied to a taxpayers last dollar of income is the taxpayers -----

marginal tax rate

Eliza, a financial counselor has found herself in a conflict situation with clients. which type of conflict situation positions is the preferred situation for her to be in during the conflict

participant observer

Herman and Martha, a 38 year old couple with two elementary school aged boys, have come in for counseling. The boys are looking forward to going to college. Herman and Martha feel obligated to contribute to the boys' college and realize the financial difficulties of doing this while maintaining their present life style. They are searching for solutions to their dilemma. As a financial counselor, the best approach to this situation is through which of the following types of counseling?

preventative

a measure of the goods and services that ones income will buy is its...

purchasing power

--------- is the phase of the business cycle where production is low, unemployment is high, and retail sales are low.

recession

a tax credit that reduces ones final tax liability below $0 resulting in a payment from the government is a

refundable tax credit

which of the following types of financial counseling is best when the following counselor is attempting to help clients with a lot of debt to understand their present situation and learn ways to resolve it?

remedial

which of the following happens when a counselor repeats what the client said adding emphasis on specific information?

restating

Madu is working on a monthly budget. What is a useful tool to help him balance out the variations in income and expenditures from month to month?

revolving savings fund

which of the following types of reductions taken to arrive at taxable income cannot be taken by a taxpayer if he or she itemizes deductions?

standard deduction

a motor home would be an example of a -----

tangible asset

income exempt from current taxation but for which taxes will likely be paid at a later date is said to be -----

tax sheltered

what is the goal of shifting responsibility

to have the client make better decisions after counseling terminates