Final Exam Personal Finance

End: | 9/3/2011 10:26:55 AM |

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Topic:
Question: What is the term for a budget that starts with the absolute necessities and debt payments and then adds expenditures until there is no more cash? 
Answer: zero-based budget 
Key Terms: Zero-based budget |
Topic:
Question: What type of mortgage loan has a fixed rate, fixed term and fixed payment? 
Answer: conventional mortgage. 
Key Terms: Conventional mortgages |
Topic:
Question: Who is the principal for whom a real estate broker works? 
Answer: the seller 
Key Terms: Real estate broker’s client |
Topic:
Question: How do insurers determine appropriate premiums for policyholders? 
Answer: by evaluating risk classifications 
Key Terms: Risk classifications |
Topic:
Question: When do medical expenses qualify as a deduction? 
Answer: When the total is greater than the designated percentage of your adjusted gross income. 
Key Terms: Medical expense |
Topic:
Question: Which of the following is not one of the suggested ways to find money to invest? 
Answer: Use existing home equity 
Key Terms: Investing |
Topic:
Question: Which of the following methods for estimating retirement income needs assumes retirement expenses will be some fixed proportion of your preretirement needs? 
Answer: replacement ratio method 
Key Terms: replacement ratio method |
Topic:
Question: Which retirement saving program has a benefit that will depend on your yearly contribution and the rate of return on invested assets? 
Answer: defined contribution plan. 
Key Terms: Contribution plan |
Topic:
Question: What type of annuity pays an equal annual amount until death? 
Answer: single life annuity 
Key Terms: Life annuities | [continues]

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