30 Questions
What does bankruptcy help to do according to the text?
Wipe out all your debts
According to the credit card law, can the issuer charge a fee for ATM cash withdrawals without your permission?
No, they cannot charge a fee
What is the 'Grace Period' in a billing cycle?
A period where late payments are accepted without penalty
Do retail charge cards usually have lower interest rates compared to credit cards?
No, they have higher interest rates
Do merchants pay lower transaction fees for debit cards compared to credit cards?
Yes, they pay lower fees for debit cards
Are earned income and adjustable gross income considered the same for IRS purposes?
No, they are different and have separate definitions
What type of entity must file a separate tax return for the business?
Sole Proprietorship
What does an 'IPO' refer to?
When a company sells shares to the public for the first time
Why do dividends received by individual shareholders appear to be taxed twice?
Corporations pay tax before distributing dividends to shareholders
What happens if a credit card company increases your APR?
The company must re-evaluate the rate increase periodically
How often is the Net Asset Value (NAV) of a mutual fund calculated and published?
Once a week
What is the main concept behind the time value of money?
Receiving money in the future has more value than receiving it today
What is the priority order for paying off debts according to the text?
Paying off credit card debt, student debt, then mortgage
According to the credit card law mentioned, where are payments in excess of the minimum first applied?
Highest rate of interest
What is a characteristic of a general partner in a partnership?
Has unlimited liability
If you have $100,000 of annual earned income, what would be your combined contribution to Social Security and Medicare?
$7,650
When can a vendor put a "hold" on your credit card account according to the text?
Only with your approval
What does the pass-through tax deduction apply to?
All the above
Which of the following statements is true about the marriage tax penalty?
The marriage tax penalty still exists
What is considered the best way to reduce risk in owning stocks?
Investing in a single stock
Do target date funds adjust your asset allocation as you get older?
No, target date funds remain static
What do successful stock investors tend to do?
Look back 2-3 years
When itemized deductions are higher than the standard deduction, what should you do?
Claim the standard deduction
What is the most important factor in determining whether investors will pay more for a stock in the future?
Current stock price
What could cause a default on a bond?
Issuer's inability to repay the principal amount within one year after the maturity date
Is it true that the only interest paid on a credit card balance is the go-to-rate?
False
What is a 'wash sale' in relation to stock trading?
Selling a stock for a profit and buying it back within 30 days
Do partners in a partnership have liability for federal income taxes even without cash distributions?
True
Do shareholders in a corporation have unlimited liability?
False
What types of income are included in earned income?
Interest, dividends, capital gains, tax refunds
Test your knowledge on personal financial management concepts with these true or false questions from a Midterm Exam. Topics include bond defaults, credit card interest, and stock selling for profit.
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