How can we help?

You can also find more resources in our Help Center.

333 terms

DSST Personal Finance

DSST Prep
STUDY
PLAY
standard of living
The primary objective of financial planning is to improve one's __________________.
late fees
Almost one third of credit card company profits are derived from _________.
value
The total _____ of stocks, bonds, savings accounts, cars and real estate owned by an individual is called wealth.
assets
Personal ______ are the things you own.
savings
Financial assets include stocks, bonds, _______ accounts and securities.
Tangible
________ assets include real estate, cars, artwork and jewelry.
Utility
_______ is the amount of satisfaction received by an individual for purchasing goods and services.
marriage
Financial compatibility is one of the most important aspects of ________.
Short
_____ term planning should include an emergency fund with 3 - 6 months of income.
years
Financial goals covering a period of six to forty _____ are called long term.
mature
Liquid assets include cash, deposits in checking and savings accounts, mutual funds, and CDs that ______ within 1 year.
insurance
Income and assets can be protected by _________.
buildings
Land and _________ are considered real property.
jewelry
Personal property includes vehicles, furniture, home electronics, and _______.
Investments
___________ are purchased to earn a return.
liability
A _________ is represented by the amount of debt we owe.
net worth
The difference between assets and liabilities is _________.
summary
A balance sheet is a _______ of a person's or organization's assets and liabilities.
current
All assets are recorded on the balance sheet at their _______ fair market value.
fiscal
The government's programs of spending and taxation are called ______ policy.
circulation
Government programs for controlling the amount of money in ___________ make up monetary policy.
employment
During an economic expansion phase, __________ and economic activity are both high.
six
A recession occurs when economic expansion continues to decline for more than ___ months.
unemployment
Rising ____________ and a falling GDP (gross domestic product) are both early indicators of a recession.
growth
A depression occurs when economic ______ declines to a near halt.
depression
A recovery phase follows a recession or a __________.
regulating
Monetary and fiscal policy are the government's two tools for __________ the economy.
growth
Changes in the GDP are used to measure economic ______.
Great Depression
During the height of the ________________, US unemployment reached 25 percent.
sell
The law of supply and demand dictates that when more people want to buy, the price goes up and when more people want to ____, the price goes down.
Inflation
_________ occurs when the general price level is rising due to excessive demand.
inflation
The CPI is used to measure _________.
CPI
Social Security payments are increased periodically as the ___ increases.
unemployment
Stagflation occurs when inflation and ____________ both rise while at the same time economic growth declines.
amount
Purchasing power is the ______ of goods and services that can be bought with our money.
45
People with the highest incomes are typically in the age group __-65.
education
The single most controllable factor that affects a person's income is _________.
inflation
High rates of _________ tend to drive up interest rates.
credit
In the US, ______ is used to purchase almost every good and service.
securities
Paying for __________ (i.e. stocks and bonds) on credit is called paying on margin.
leverage
When an investor purchases stocks or investment real estate with borrowed money this is called ________.
Lenders
_______ examine a potential borrower's credit history to find out if the borrower is dependable, reliable and responsible.
Credit capacity
_______________ is the amount of borrowing a person can realistically handle considering current income and expenses.
secure
Collateral is an asset that is used to ______ a loan.
personal
If you borrow money and use ________ property as collateral for the loan, this is called a chattel mortgage.
assets
Capital is the amount of ______ owned by a borrower that are free and clear.
debt safety
The ___________ ratio is determined by dividing a person's total monthly consumer credit payments by their monthly take home pay.
maximum
Most experts regard 20 percent as the _______ debt safety ratio.
cash surplus
When money is left over after subtracting the total expenses from the total income, the result is a ____________.
advance
Credit extended to a consumer in _______ of any transaction is called open account credit.
balance
Borrowers can avoid paying interest on open account credit by paying the full amount of the account _______ each month.
credit
A ______ statement summarizes transaction charges, interest and fees on a consumer credit account.
maximum
A line of credit is the _______ amount a borrower can owe at any time on a credit card.
cash advance
Most bank credit cards allow the cardholder to obtain a ____________ from any participating bank.
balance
Transferring the balance from one or more credit cards to a new credit card is called a _______ transfer.
incentive
A rebate card combines the traditional features of a bank credit card with an additional _________.
credit cards
In general, the interest rates on ____________ are higher than any other form of consumer credit.
full
The grace period is the number of days in which you can pay your credit card statement in ____ without being charged interest.
variable
Most credit cards feature a ________ interest rate which is tied to an index which goes up and down depending on the market.
bank
Affinity cards make money for the group backing the card in addition to the ____.
secured
A _______ credit card requires the cardholder to provide collateral before receiving the card.
debit
A _____ card works like writing a check.
borrowers
A credit bureau collects and stores information about individual _________.
age
Factors such as ___, annual income, length of time in current job, and level of existing debt are used to determine a borrower's credit score.
Equal
The _____ Credit Opportunity Act of 1975 and 1977 prohibits credit discrimination based on sex, marital status, race, religion, or national origin.
1996
The Consumer Credit Reporting Act of ____ requires the full and accurate disclosure of credit information.
1975
The Fair Credit Billing Act of ____ dealt with billing procedures and recourse on unsatisfactory purchases.
personal bankruptcy
With ___________________, a debtor petitions a court for protection from creditors and arranges for liquidation and distribution of their assets.
straight
The result of a ________ bankruptcy is to wipe the slate clean and start anew.
straight
A ________ bankruptcy is more formally known as a Chapter 7 bankruptcy.
Wage Earner
The ___________ plan is an alternative to straight bankruptcy in which the debtor makes regular payments to the court which pays off the creditors.
business
Chapter 11 bankruptcy is for ________ owners and is similar to the wage earner plan.
20
A combination of straight bankruptcy and the wage earner plan is called a Chapter __ bankruptcy.
undisciplined
Sometimes bankruptcy is caused by a personal catastrophe, but typically it is caused by the individual's _____________ use of credit.
10
If you've had a bankruptcy in your past, that information may remain in your file for up to __ years.
debt counseling
A _______________ agency may be able to contact your creditors and get your payments reduced.
cheapest
Home equity lines of credit are among the ________ forms of consumer credit.
revolving
A home equity line of credit is similar to a credit card in that it is a _________ credit account.
home
With a home equity line of credit, your ____ is the collateral.
Interest
________ paid on a home equity line of credit is tax deductible.
75
80 - On a home equity line of credit, most banks limit the maximum loan amount to _____ percent of the equity in the home.
market value
Home equity is the difference between the amount you still owe on your mortgage and the ____________ of the home.
2/5/2013
Most people buy a car every ___ years.
20
Your monthly car payment should be no more than __ percent of your monthly income.
out of pocket
Auto insurance, fuel, tires, and maintenance costs are some of the _____________ costs of operating a car.
depreciation
The loss in value that occurs over a period of time for an asset (such as an automobile) is called ____________.
3000
If Bob buys a car for $10,000 but is only able to sell it for $7,000 two years later, the depreciation is $_____.
sticker
The manufacturer's suggested retail price for a particular vehicle with its options is called the _______ price.
closed end
The __________ lease is the most popular form of automobile lease.
businesses
Open end leases are used primarily by __________, not individuals.
residual
Often an auto lease specifies the ________ value as the price at which the lessee can buy the car for at the end of the lease term.
price
The _____ of a leased car is its capitalized cost.
finance
The _______ cost on a lease is called the money factor.
multiply
To convert the money rate to the annual percentage rate you must ________ it by 2400.
purchase
Most auto leases include a ________ option which allows the lessee to buy the car at the end of the lease.
2/5/2013
Generally auto lease terms run ___ years.
lemon
The Magnuson-Moss Warranty Act is more commonly known as the federal _____ law.
Lemon
_____ laws are designed to protect consumers who purchase a defective car, truck, van, SUV, motorcycle, boat or computer.
as is
If you knowingly purchase a car in _____ condition, you accept the defects and void your rights under the lemon law.
FTC
Although the ___ doesn't resolve individual consumer complaints, they do enter all complaints they receive into an online database that is used by law enforcement authorities worldwide.
State
In small claims court, the maximum claim amount varies depending on the _____.
do not
You (do or do not?) need a lawyer to represent you in small claims court.
Condominiums
____________ can be apartments, cluster housing, or town houses.
Coop
In a ____ apartment, each tenant owns a share of the corporation that owns the building.
assessment
With a cooperative apartment, tenants pay a monthly __________ in proportion to ownership shares, based on the space they occupy.
renting
A big disadvantage of _______ a home versus owning one is that rent is not tax deductible.
lease agreement
A _______________ is a legal document which protects both the lessor and the lessee.
equity
Money that the bank requires a buyer to invest when purchasing a home is called ______.
loan to value
The _____________ ratio is the maximum percentage of the property value that the bank is willing to loan.
20
In general, the bank will require the buyer to purchase private mortgage insurance if the down payment is less than __ percent.
points
Mortgage ______ are up front fees charged by a lender.
Truth in Lending
Under the ________________ Law, lenders are required to quote their rates in terms of APR.
attorney
Buyer closing costs include the down payment, ________ fees, insurance, mortgage points, appraisal fees, taxes, inspections, title search, etc.
prequalification
A ________________ letter is obtained from a bank or finance company prior to shopping for a home and includes interest rates, down payment information and the size of the loan the borrower can expect approval for.
deposit
Earnest money is a _______ pledged by the buyer as a show of good faith when making an offer to purchase real estate.
title search
The purpose of a ____________ is to verify the property has no liens or encumbrances and that the seller has the legal right to sell it.
property
A mortgage loan is secured by the ________.
closing
A _______ statement is provided to both the buyer and seller before and after the closing.
single
A balloon payment mortgage features a ______ large payment due at a later date.
payments
With a fixed rate mortgage, your ________ remain the same throughout the life of the loan.
adjustable
Choosing an __________ rate mortgage offers the advantage of a lower initial interest rate to the borrower than a competing fixed rate loan.
limit
On an adjustable rate mortgage, the interest rate cap is the _____ the interest rate can increase.
negative
Loan payments that are lower than the amount of monthly interest charged results in ________ amortization.
closing
The money a buyer puts down on a home is kept in an Escrow account until _______.
city and county
Title companies search _______________ records to verify the home you're buying has a clean title.
inspection
When buying a home, a professional __________ is designed to evaluate the physical aspects of the house.
interest
One way to obtain a lower ________ rate home loan is to pay points.
Prequalification
________________ is informal and is based on information you provide the lender.
Preapproval
___________ is a formal process where the lender verifies the financial information you provide and runs a credit check on you.
amortization
An ____________ schedule shows how much of the mortgage payment will be applied to principal and how much to interest over the life of the loan.
interest
In the early years of a mortgage, the majority of the payment is applied to ________.
insurance
PITI is an acronym that stands for principal, interest, property taxes and homeowner's _________.
insurance
When making a monthly mortgage payment the principal and interest go toward the loan and the tax and _________ goes into an escrow account.
term
The ____ of a mortgage refers to how many years it will take to pay off the loan.
refinancing
When interest rates fall, it's possible to lower your payments by ___________ your mortgage.
commissions
Real estate ___________ are paid by the seller at closing.
insures
The FHA does not make direct loans but instead _______ loans made by private lenders.
federal
Gross income includes all income subject to _______ taxes.
active
Non-investment income, such as wages and salaries, tips and bonuses is classified as ______ income.
investments
Earnings from ___________ are classified as portfolio income.
real estate
Income from ___________ and tax shelters is classified as passive income.
real estate
Capital gains are taxes assessed for making a profit selling stocks, bonds, and ___________.
gross
Subtracting deductions and exemptions from _____ income results in taxable income.
head of household
An unmarried taxpayer who pays more than half of the costs for maintaining a home and an eligible dependent child or relative files taxes as _________________.
joint
Married taxpayers can file separately or they can file a _____ federal income tax return.
Withholding
___________ taxes include city, state, and federal income taxes as well as social security taxes (FICA).
casino winnings
In addition to your paycheck, _______________, bonuses, and pensions are also subject to withholding taxes.
1040
Federal income taxes are filed on a ____ form.
Estimated
_________ tax payments for federal income taxes must be submitted with a Form 1040ES.
Self employed
_____________ persons are required to file federal income taxes annually and pay estimated taxes quarterly.
1040A
Form _____ is designed for taxpayers who can file a more simplified tax return than Form 1040 and yet are ineligible to file Form 1040EZ.
amended
Filing an _______ federal tax return is done on Form 1040X.
withhold
Your employer determines how much money to ________ from your paycheck based on information you provide on a W-4 form.
more
On a W-4 form, the ____ exemptions an employee claims, the less that is withheld from his pay.
child
Your W-4 form changes whenever you get married, divorced, or have a _____.
previous
Each January, your employer provides you with a W-2 form which indicates your earnings and withholdings for the ________ year.
4852
The ____ form is a substitute for the W-2 form.
standard
Taxpayers who don't have many deductions to claim can use the ________ deduction.
standard
Itemized deductions are the alternative to using the ________ deduction.
mistake
If you make a _______ on your tax return, you can file an amended return.
college students
Children who are ________________ can be claimed as dependents until age 24.
sales
When calculating federal income tax deductions, taxpayers can deduct state and local income taxes or _____ taxes but not both.
reduction
A tax credit is a direct dollar for dollar _________ of total federal taxes due.
dependents
Single persons with no __________ can file a form 1040EZ.
Itemized
________ deductions are listed on Schedule A of a 1040 form.
home
Married taxpayers can exclude up to $500,000 profit earned from the sale of a ____.
larger
A progressive tax structure is one in which the ______ the amount of taxable income, the higher the tax rate.
4/15/2013
Federal tax returns are due by ________ each year.
tax audit
Each year the IRS randomly selects some returns for a _________.
Enrolled
________ agents are federally licensed and have passed a rigorous 2 day exam administered by the IRS.
taxpayer
When using a professional tax preparer, the ________ has primary responsibility for the accuracy of the tax return.
Illegal
_______ activity such as overstating deductions and omitting income is called tax evasion.
Congress
Tax avoidance is the process of legally reducing taxes in ways that are compatible with the intentions of ________.
shifting
Creating trusts, custodial accounts and transferring income producing property as gifts are all examples of income ________.
Gift
____ taxes apply to gifts of personal property, real estate, and both direct and indirect gifts.
IRA
Income earned in a traditional ___ is an example of tax deferred income.
free
Income earned on municipal bonds is an example of tax ____ income.
Rent
____ free use of property is not taxable.
federal estate
The ______________ tax is the biggest of all possible taxes arising at one's death.
federal estate
In 2006, the ______________ tax paid on estates valued at over 2 million dollars was 46 percent.
software
In addition to private tax preparers, taxpayers can also use tax ________ to calculate their federal and state income tax payments.
Economic Recovery
Through the _________________ Tax Act of 1981 (ERTA), the Reagan administration accomplished several goals including across the board tax cuts.
financial
The purpose of insurance is to protect you and your family from the _________ hardships associated with accidents, illness or death.
Disability
__________ insurance policies exist that will cover up to 70 percent of your income.
prevention
Any activity intended to reduce the likelihood that a loss will occur is called loss __________.
control
An activity which reduces the severity of a loss once it occurs is called loss _______.
premiums
Insurance companies use underwriters to determine who is eligible for insurance and how much the ________ will cost.
Risk assumption
_______________ can be an effective method to cope with many types of small exposures to risk where insurance would be too expensive.
avoidance
If someone who is afraid of dying in an air crash refuses to fly, they are practicing risk _________.
policy
An insurance ______ is a contract between you and the insurance company.
premium
The money you agree to pay the insurance company is called the _______.
coinsurance
A ___________ clause is a provision found in some health insurance policies that indicates the insurance company will only pay a portion of the insurance claim and not the entire amount.
preventive
For a monthly fee, HMO members receive a wide range of health care services, including hospital surgical and __________ medical care.
life
The purpose of ____ insurance is to protect your dependents from the financial loss associated with your death.
life
Credit insurance, also known as credit ____, is one of several kinds of insurance sold through lenders.
Are not
Life insurance benefits paid to your beneficiaries (are, are not?) taxable. _______.
beneficiary
In the event that no named ___________ survives the insured, typically the estate of the insured receives the death benefit.
Variable
________ life policies are more investment vehicles than they are life insurance products.
annual
With the multiple of earnings method, the amount of life insurance you purchase is determined by multiplying your gross ______ earnings by some number.
income
Most insurance agents recommend that your life insurance coverage equal 5-10 times your current ______.
needs analysis
The ______________ method takes into account both your financial obligations and financial resources.
5
You should review and adjust your life insurance policy at least once every _ years.
bread winner
Social Security Survivor's benefits are intended to provide basic support to families faced with the loss of their principal ____________.
18 or 19
Social Security survivor benefits are paid to unmarried children until age ________.
16
Nonworking surviving spouses can receive survivor benefits until their children reach age __.
60
A surviving spouse can receive partial Social Security survivor benefits as early as age __.
50
If a widow or widower is disabled, they can begin receiving social security survivor benefits at age __.
health
Someone in excellent ______ is usually considered preferred and pays the lowest premium.
straight
With a ________ term life insurance policy, the coverage remains the same, but the premium may increase.
premium
With a decreasing term life insurance policy, the coverage decreases but the _______ does not change.
Whole
_____ life insurance provides death benefits and has a savings feature called cash value.
whole
Some people choose _____ life insurance because the periodic payments force them to save regularly.
Continuous
__________ premium offers the greatest amount of death protection and the least amount of savings per premium dollar.
deductible
The higher the __________, the lower the premium.
term
The cheapest form of life insurance is ____ life.
cash value
Whole life, variable life, universal life and variable universal life insurance policies are all classified as __________ insurance.
investment
The result of __________ earnings on paid in insurance premiums is called cash value.
fixed
Term life insurance doesn't have any cash value and is purchased for a fixed amount of protection for a _____ period.
Disability
__________ insurance provides income to a worker who becomes unable to work due to sickness or injury.
unemployment
The ____________ insurance program is administered by the States.
liability
The _________ component of a car insurance policy pays for damages to property and injuries to people caused by you.
uninsured
To receive payment through _________ motorist insurance, you must prove that another motorist was at fault, damages were incurred, and that the motorist has no insurance or too little insurance.
bodily injury
Uninsured motorist insurance protects the insured and the insured's passengers from _____________ losses resulting from an automobile accident caused by an uninsured motorist.
collision
If your car is old and isn't worth much, it doesn't make sense to carry _________ insurance.
comprehensive
If your car were to be damaged by fire, hail or water, _____________ insurance would pay for the loss.
Does not
Comprehensive homeowners insurance (does / does not?) cover damage from floods, landslides, and earthquakes. ________
driving
In addition to factors such as age, sex, and _______ record, how much you pay for insurance is influenced by your credit history.
claims
You should avoid filing insurance ______ for small losses.
Medicare
Medigap is a type of private insurance designed to supplement ________ coverage.
Medigap
_______ insurance comes in various plans that are labeled A through L.
indemnity
The principle of _________ states that insurance will pay no more than the actual financial loss suffered.
health insurance
COBRA is a law that allows a person to maintain their group ________________ coverage for up to 18 months if they lose their job.
HIPAA
_____ is a law that was designed to protect the privacy of patient medical records.
cash management
The day to day administration of liquid assets by an individual or family is called _______________.
short
Issued by the US Treasury, T-bills are _____ term highly marketable securities.
5
Issued by the US Treasury, savings bonds mature in about _ years.
federal
Savings bonds and T-bills are examples of loans we make to the _______ government.
savings
A _______ account is a loan to a financial institution.
Savings
_______ accounts have the highest level of pledge value of any investment.
Municipal
_________ bonds are loans made to cities and states.
failure
Deposit insurance protects deposits at banks against institutional _______.
FDIC
The ____ insures accounts in commercial banks and mutual savings banks.
checking
A ________ account held at a bank is an example of a demand deposit.
timed
Savings accounts are an example of _____ deposits and are expected to remain in the bank longer than demand deposits.
NOW
A ___ account is a type of interest bearing checking account.
mutual fund
An MMDA is an insured savings account offered by banks and are intended to compete with ___________ accounts.
mutual fund
A ___________ is a widely diversified portfolio of securities which is sold to the public by an investment company.
open ended
With __________ mutual funds, the fund manager is allowed to buy and sell securities at will.
Mutual fund
___________ 12(b)-1 fees were designed to help cover distribution and marketing expenses.
ETFs
____ are similar to mutual funds.
accrual
With an _______ type security, interest is paid when the security is cashed in, not periodically.
ledger
A checkbook ______ is used to maintain accurate records of checkbook transactions.
overdraft
An _________ results when a check is written that exceeds the current account balance.
stop payment
When an account holder orders the bank to refuse payment of an issued check, this is called a ____________.
securities
Investing involves purchasing __________ which are stable and offer a somewhat predictable level of return.
speculating
To buy and sell securities which have a very uncertain future value is ___________.
stock
A _____ certificate implies partial ownership of a business.
Yield
_____ refers to how much money your investments or savings will earn.
profits
Dividends are a portion of the _______ a company distributes to its stockholders.
stocks
The SEC is the federal agency that regulates the trading of ______.
over the counter
Nasdaq stocks are commonly referred to as ________________ stocks.
NYSE
Stocks traded on the Nasdaq and the AMEX are generally riskier than stocks traded on the ____.
bonds
With _____, the market value may change but the yield you receive while you own it will remain constant.
maturity
With bonds, you will get back your principal on the ________ date.
junk
High risk bonds are also known as ____ bonds.
Credit
______ risk is the possibility that a company can't make the scheduled principal and interest payment it owes you.
Treasury
________ bills are short term and mature in one year or less.
semiannually
Municipal bonds pay interest ____________.
compounding
The more frequent the ___________ of interest, the higher the return to the investor.
municipal
The default risk on _________ bonds is very low.
corporate
The income from _________ bonds is taxable at the federal, state and local level.
passbook
Interest earned on ________ savings and money market accounts is fully taxable.
passbook savings
The main disadvantage to ________________ accounts is their low interest rates.
four
The current price of a stock divided by its most recent ____ quarters of earnings is called the price earnings ratio.
set
Preferred stock pays a ___ dividend each quarter.
Equity
______ REITs own office buildings, condominiums, hotels, apartments, and industrial plants. Mortgage REITs provide permanent mortgages and short-term construction loans.
public
All ______ corporations, as well as mutual funds, file reports with the SEC.
retirement
The biggest pitfalls to a sound __________ include starting too late, saving too little, and being too conservative with investments.
fixed
CDs and Treasury notes are examples of low yield, _____ income securities.
Social Security
The three main sources of income for retired people are _______________, assets, and pension plans.
government assistance
The single largest source of income for the average American retiree is _____________________.
social security
Employees of state and local governments are exempt from mandatory participation in the _______________ system.
10
To qualify for full retirement benefits, workers must be employed in a job covered by Social Security for at least __ years.
FICA
The cash benefits paid out by Social Security are derived from ____ taxes.
67
For people born in 1960 or later, full retirement age is age __.
62
Workers can retire as early as age __.
four
When you work and pay Social Security taxes, you earn up to a maximum of ____ credits for each year.
retirement
The number of work credits you need to qualify for Social Security __________ benefits depends on your date of birth.
bequest
A _______ is the specific property or money given to a beneficiary.
strings attached
A trust is a ________________ way of passing property or money to a beneficiary.
others
A trustee is a person appointed by the will to take legal ownership of the property, the benefit of the ownership of which is to go to ______.
holographic
A will that is prepared in the handwriting of the testator is called a ___________ will.
intestate
When a person dies _________ (without leaving a will), his property must be disposed of in accordance with the law and to do that the probate court appoints an administrator.
Probate
_______ is a court proceeding in which the validity of a will is established.
Minor
_____ changes to a will can be made via a document called a codicil.
survivors
Before the _________ can receive their shares of the estate, remaining debts, funeral expenses, and taxes must be paid.
attestation
The clause in a will in which the witnesses confirm that they performed their duties in accordance with the law is the ___________ clause.
Testator
A person who makes out a will is called the ________.
testimonium
In the ___________ clause of a will, the testator states that he is signing the document as his last true will and testament.
decedent
A ________ is a person who has died.
life estate
A ___________ is a bequest where the beneficiary is given the use of a designated property for the remainder of his life.
custody
The trustee is the institution or person who has _______ of someone else's property or money to be given to a third party.
executor
The person or institution named in a will to handle the estate is called the ________.
marital
The most important deduction that can reduce estate tax liability is the _______ deduction.
minimize taxes
The goal of estate planning is to ______________ while still having your wealth go where you want it to go.
insolvent
An estate is considered _________ if after paying all debts and expenses, nothing remains for the survivors.
profit
If you receive property as an inheritance and later sell it at a profit, that ______ is subject to income taxes.
Estate
______ taxes are paid out of the estate's assets before anything is distributed to the heirs.
key man
When business partners take out life insurance on the life of each other, this is called _______ life insurance.
distribution
In the context of estate planning, ____________ refers to who gets what.
state
It's possible to be affected by the estate laws of more than one _____.
lawyer
An estate ______ is the best qualified individual to manage the problems of estate planning.
objectives
During the initial estate planning meeting, you should inform the lawyer of all your assets, liabilities and your estate planning __________.
cash
Liquidity refers to the ability to convert assets quickly to ____.
estate taxes
Liquidity is important not only because it allows your survivors to continue to pay their bills, but liquidity is also essential so that any ____________ that arise can be paid when due.
inflation
One of the key reasons one's wealth increases gradually over time is _________.
tax free
With a Roth IRA the money you invest is not tax deductible but the earnings are ________.
deferred
A standard IRA is tax ________.
Keogh
A _____ plan allows self employed individuals to set up a self directed retirement account for themselves and their employees.
Keogh
A SEP-IRA is similar to a _____ account and is targeted at small business owners who want a plan that is simple to set up and administer.
employer
A non-contributory pension plan is one that is funded entirely by the ________.
shelters
Tax ________ provide ways to legally reduce or defer taxes.
Cash Management
Insolvency, reduction of days in account receivables, increasing collection rates, selecting
shortterm investment and increasing days cashonhand are characteristics of what type
of management
15 Years Fixed Rate
Mortgage and 30 Years Fixed
Rate Mortgage
Two types of fixed rate mortgages are: _____
FrontEnd Ratio
The percentage of a yearly gross income dedicated toward paying each month mortgage
is known as _____
Audit
An unbiased examination and evaluation of the financial statements of an organization is
known as _____
Cash Value
_____ insurance offers protection for your entire life and more flexibility
Whole Life Insurance
A predictable policy that provides a guaranteed benefit and earning rate on cash value
and level premium are known as ____
Umbrella Coverage
An added layer of security for those at risk for being sued for damages to other people's
property or injuries caused to others in an accident it protects against libel, vandalism,
slander and invasion of privacy is known as _____
Policy limit fair of fair
market of structure
In the case of total loss of the structure, what must be considered for the Actual Cash
Value (ACV) to be determined
Indemnity Policy
A policy that allows the individual to choose any doctor and hospital that the individual
wish when seeking health care services is known as _____
Dollar Cost Average
The technique of buying a fixed dollar amount of a particular investment on a regular
schedule, regardless of the share price is known as _____
Standard and Poor
A financial services company that rates stocks and corporate and municipal bonds
according to risk profiles