Advanced Personal Finance Final Exam Study Guide

Principal × Rate = Interest.

• True

• False

Which of the following is NOT a way to limit the amount of income tax you owe?

• tax-deferred investments

• home ownership

• tax-exempt investments

• filing your taxes online

Common taxes on purchases are sales tax and gift tax.

• True

• False

The person named in a life insurance policy to receive benefits.

• exemption

• credit rating

• regular account

• dependent

• beneficiary

These stockholders have voting rights in a corporation.

• exemption

• dependent

• common stockholders

• credit rating

• regular account

An endorsement that allows you to transfer a check to another person.

• credit rating

• regular account

• exemption

• full endorsement

• dependent

A person's reputation for paying bills on time.

• exemption

• regular account

• restrictive endorsement

• dependent

• credit rating

A person who must rely on another for financial support.

• dependent

• credit rating

• exemption

• regular account

• restrictive endorsement

Results from wages, salary, commission, fees, tips, and bonuses.

• dependent

• earned income

• credit rating

• exemption

• regular account

A tax deduction for the taxpayer, a spouse, and each dependent.

• restrictive endorsement

• dependent

• regular account

• exemption

• credit rating