1) The socioeconomic system that is likely in the near future will be one where?
A)Government plays a greater role in solving financial problems(B) Employers provide greater retirement benifits for thier employees.(C) Families will be more self-reliant for thier financial futures (D)nHuge increases in family saving elinate the need for financial planning.

2) Which alternative below is not true of current consumption?
A)It refers to good and services used in the current consumption(B) Generally, more of it leads to greater levels of satisfaction (C) It can be increased by current borrowing. (D) It is usually less desirable than future consumption.

3) You are considering buying a home. A pertinent action plan would not include:
A) Your anticipated enjoyment of the home.(B) when the home will be purchase(C) How much must be saved each year to accumulate a down payment(D) how thw annual saving will be invested until the down payment is made

4) With an interest rate of 9%, your investment would double in about
A) 4 years (B) 6 years (C) 8 years (D) 10 years

5) Which type of computation would a person use to determine current value of a desired amount for the future
A) Future value of a single amount(B) Future value of a series of deposits (C) Present value of a single amount (D) Present value of a series of despoit

6) If a person deposited $50 a month for 6 years earing 8%, this would involve what type of computation ?
A) Future value of a single amount(B) Future value of a series of deposits (C) Present value of a single amount (D) Present value of a series of despoit

7) At the end of 1999, Phil had a net worth of $10,000. During 2000, he plans to save $2,000 and he also expects the market value of his assets to increase by 5%. If Phil's total liabilities were $4,000 at December31, 1999, his Dececember 31, 2000 net worth will be
A) $12,000 (B) $12,500 (C) $12,700 (D) $12,800

8) In relation to the balance sheet, an income statemnt shows
A) Net worth, not the period's saving or dissavings (B) The period saving or dissaving , not net worth(C) Activities at a point in time, not over a period of time (D) Financial position not financial performance

9) People suffering from sticker shock probably have
A) Overestimated thier real income (B)Underestimate their norminal income(C) Overestimated inflation (D) Underestimated inflation

10)John Smith has a debt ratio of 0.25, which tells us that John
A) Is insolvent since the ratio is less than 1.0 (B) Could have $10,000 in total assets and $7,500 in net worth(C) has 25% of his income allocated to reducing debts (D) Might have $2,500 in liquid assets and $10,000 in current debts

11) In relation to the balance sheet or income statement, the budget
A) Requires greater accuracy (B) Requires greater concern for financila goals (C) Is less concern with planning (D) Is less important

12) In extending an expense item for the current budget year, an often used and useful approach is to
A) use last years figure (B) Use the average of the last 3 years (C) ues last years figure plus a usual 10% " fudge factor"(D)adjust last year year's figure upwards by this years expected inflation

13) From a budgeting view, which of the following statement is not true cocerning variances?
A)a favorable expense variance means the budget amount was more than the actual amount(B) Cumulative variance = current months variance + variances of the previous months(C) Ideally, cumulative variances for the year will equal zero(D) Ideally, cumulative variance for the year should be postive value

14)Individuals with above average amounts of mortgage interset, medical expense and property taxes are likely to
A)take both itemized deductions and the standard deduction(B) take only the standard deduction(C) take only itemized deduction (D) take the alternative minimum tax.

15) Alica has a tax credit of $100 and a marginal tax rate of 28%. Alician income tax will be reduced by how much as a result of the credit
A)$28 (B) $128 (C)$100 (D) none of the above; her taxes will increase by $100

16)For higher income individuals the marginal tax rate will be
A)Greater than the avaerage tax rate (B) Equal to the avaerage tax rate (C) less than average tax rate(D) above ,equal to, or less tahn the average tax rate. Its impossible to know given the present information .

17) Anita sold for $60,000 her home that she purchased ten years ago for $20,000. She then purchased another home a month later for $70,000. The taxable amount of her capitial gain is
A)$60,000(B) $40,000 (C) $30,000 (D) $0

18)Which of the following would NOT be a characteristic of a qualifying educational expense
A)The education must be required by our employer and serve to maintain or improve your skills in your present work (B) the education must enable you to meet the minimum skills for your present job. (C)it reduce your taxable income, your job related income (D) for it to reduce your taxable income must exceed 2% of your adjusted gross income.

19) Evan, who has 28% marginal tax rate, is considering giving securities to his son, who is under 14 years of age.The securities will yield $500 of income each year. If Evan makes the gift then
A) Todd must pay a gift tax based on $500(B) Family income after taxes will increase by$140 each year, assuming Todd would have no other taxable income. (C) the family could deduct $500 from its income each year, assuming Evans wife agree to the gift. (D) there will be no change in taxes, assuming the family files a joint return. (D) There will be no change in taxes, assuming the family files a joiny return

20) Which statement is not true state and local taxes?
A) they do not vary much from one part of the country to another(B) Most of the states have state income taxes (C) Most states have states sales taxes (D) most local governments rely upon property taxes for the most of thier tax revenues