2
FiCEP Study Guide Final Exam with precise detailed answers || || || || || || || ||
A tax is defined as a contribution that supports the _____ of a government. - ✔✔operating costs
|| || || || || || || || || || || || || || || ||
A _____ tax requires a taxpayer to pay more tax as their income increases. (Federal and state
|| || || || || || || || || || || || || || || || ||
income taxes are examples) - ✔✔progressive
|| || || || ||
A _____ tax charges the same percentage of the cost of a good or service, no matter what the
|| || || || || || || || || || || || || || || || || || ||
taxpayer earns. (Sales tax, gas taxes, and liquor taxes are examples) - ✔✔regressive
|| || || || || || || || || || || ||
Sometimes taxes are called _____. - ✔✔fees or surcharges || || || || || || || ||
A _____ could include the cost of a driver's license or a hunting license. - ✔✔fee
|| || || || || || || || || || || || || || ||
A _____ could be a gasoline tax, tobacco tax, or liquor tax. - ✔✔surcharge
|| || || || || || || || || || || || ||
Taking care of _____ is as important for a member's financial well-being as it is to pay their bills
|| || || || || || || || || || || || || || || || || || ||
on time. - ✔✔tax obligations
|| || || ||
Any _____ from the IRS should be reviewed and dealt with as soon as possible. -
|| || || || || || || || || || || || || || || ||
✔✔correspondence
If you have not been able to resolve a problem with the IRS, seek assistance from the _____. -
|| || || || || || || || || || || || || || || || || || ||
✔✔taxpayer advocate service. || ||
Complex tax situations might require members to hire a _____. - ✔✔tax professional
|| || || || || || || || || || || ||
_____% of taxpayers may be eligible for free tax filing assistance. - ✔✔70
|| || || || || || || || || || || ||
,2
If members get a large refund, they might want to change their _____ if the money is needed in
|| || || || || || || || || || || || || || || || || || ||
their monthly budget. - ✔✔filing status
|| || || || ||
Caution members that using refund anticipation loans can be a _____ way to get instant access to
|| || || || || || || || || || || || || || || || ||
their refund. - ✔✔costly
|| || ||
The first choice for using a tax refund is to _____. - ✔✔pay down debt
|| || || || || || || || || || || || || ||
Other tax authorities that members must pay attention to are state income tax, property tax, and
|| || || || || || || || || || || || || || || ||
_____. - ✔✔self-employment quarterly taxes|| || || ||
Examples of _____ are wages, salaries and tips, interest income, alimony, business income,
|| || || || || || || || || || || || ||
capital gains, pensions and annuities, other forms of income, and distributions from a traditional
|| || || || || || || || || || || || || ||
IRA. - ✔✔taxable income || || ||
Examples of ____ are child support payments, life insurance benefits paid to a beneficiary, gifts
|| || || || || || || || || || || || || || ||
and inheritances from parents, social security benefits, benefits from welfare, and qualified
|| || || || || || || || || || || ||
distributions from roth IRAs. - ✔✔non-taxable income || || || || || ||
_____ can make a difference in the taxes paid. - ✔✔filing status
|| || || || || || || || || || ||
Examples of _____ are single, married filing jointly, married filing separately, head of household,
|| || || || || || || || || || || || || ||
and qualified widow or widower with dependent children. - ✔✔filing status
|| || || || || || || || || ||
Saving for retirement can also save taxes by making contributions to a _____. - ✔✔401(k) plan
|| || || || || || || || || || || || || || ||
If a person is in a 25% income bracket, they could save 25% of the money they deposit into a
|| || || || || || || || || || || || || || || || || || || ||
_____. - ✔✔traditional IRA || || ||
, 2
Financial counseling clients can manage some of the risks in life by having the right types and
|| || || || || || || || || || || || || || || || ||
amounts of _____. - ✔✔insurance || || || ||
An _____ in a car you financed at the credit union could be held by both you and the credit union.
|| || || || || || || || || || || || || || || || || || || || ||
- ✔✔insurable interest
|| ||
You can make a better choice about insurance coverage if you evaluate your _____. - ✔✔risks
|| || || || || || || || || || || || || || ||
An _____ can give you protection if someone sues you for an accident on your property. -
|| || || || || || || || || || || || || || || || ||
✔✔umbrella liability policy || ||
_____ can help manage the costs of insurance. - ✔✔deductibles and policy limits
|| || || || || || || || || || || ||
_____ provides the right for an employee that is terminated or resigns to keep their medical
|| || || || || || || || || || || || || || || ||
insurance for 18 months if they pay the cost (full amount of the premium). - ✔✔cobra
|| || || || || || || || || || || || || || ||
Medicare _____ is free. - ✔✔part A || || || || || ||
Medicare _____ is paid for by the insured. - ✔✔part B
|| || || || || || || || || ||
Liability, personal injury or medical coverage, uninsured or under-insured coverage,
|| || || || || || || || || ||
comprehensive, collision, and towing and roadside assistance, and car rental coverage are the || || || || || || || || || || || || ||
seven types of _____ available to consumers. - ✔✔auto coverage
|| || || || || || || || ||
The rule of 72, or _____, shows how long it will take for a person's investment to double. (72 /
|| || || || || || || || || || || || || || || || || || || ||
current interest rate = number of year required to double original investment) - ✔✔compounding
|| || || || || || || || || || || || ||
_____ is the ability to convert an investment into cash. - ✔✔liquidity
|| || || || || || || || || || ||
FiCEP Study Guide Final Exam with precise detailed answers || || || || || || || ||
A tax is defined as a contribution that supports the _____ of a government. - ✔✔operating costs
|| || || || || || || || || || || || || || || ||
A _____ tax requires a taxpayer to pay more tax as their income increases. (Federal and state
|| || || || || || || || || || || || || || || || ||
income taxes are examples) - ✔✔progressive
|| || || || ||
A _____ tax charges the same percentage of the cost of a good or service, no matter what the
|| || || || || || || || || || || || || || || || || || ||
taxpayer earns. (Sales tax, gas taxes, and liquor taxes are examples) - ✔✔regressive
|| || || || || || || || || || || ||
Sometimes taxes are called _____. - ✔✔fees or surcharges || || || || || || || ||
A _____ could include the cost of a driver's license or a hunting license. - ✔✔fee
|| || || || || || || || || || || || || || ||
A _____ could be a gasoline tax, tobacco tax, or liquor tax. - ✔✔surcharge
|| || || || || || || || || || || || ||
Taking care of _____ is as important for a member's financial well-being as it is to pay their bills
|| || || || || || || || || || || || || || || || || || ||
on time. - ✔✔tax obligations
|| || || ||
Any _____ from the IRS should be reviewed and dealt with as soon as possible. -
|| || || || || || || || || || || || || || || ||
✔✔correspondence
If you have not been able to resolve a problem with the IRS, seek assistance from the _____. -
|| || || || || || || || || || || || || || || || || || ||
✔✔taxpayer advocate service. || ||
Complex tax situations might require members to hire a _____. - ✔✔tax professional
|| || || || || || || || || || || ||
_____% of taxpayers may be eligible for free tax filing assistance. - ✔✔70
|| || || || || || || || || || || ||
,2
If members get a large refund, they might want to change their _____ if the money is needed in
|| || || || || || || || || || || || || || || || || || ||
their monthly budget. - ✔✔filing status
|| || || || ||
Caution members that using refund anticipation loans can be a _____ way to get instant access to
|| || || || || || || || || || || || || || || || ||
their refund. - ✔✔costly
|| || ||
The first choice for using a tax refund is to _____. - ✔✔pay down debt
|| || || || || || || || || || || || || ||
Other tax authorities that members must pay attention to are state income tax, property tax, and
|| || || || || || || || || || || || || || || ||
_____. - ✔✔self-employment quarterly taxes|| || || ||
Examples of _____ are wages, salaries and tips, interest income, alimony, business income,
|| || || || || || || || || || || || ||
capital gains, pensions and annuities, other forms of income, and distributions from a traditional
|| || || || || || || || || || || || || ||
IRA. - ✔✔taxable income || || ||
Examples of ____ are child support payments, life insurance benefits paid to a beneficiary, gifts
|| || || || || || || || || || || || || || ||
and inheritances from parents, social security benefits, benefits from welfare, and qualified
|| || || || || || || || || || || ||
distributions from roth IRAs. - ✔✔non-taxable income || || || || || ||
_____ can make a difference in the taxes paid. - ✔✔filing status
|| || || || || || || || || || ||
Examples of _____ are single, married filing jointly, married filing separately, head of household,
|| || || || || || || || || || || || || ||
and qualified widow or widower with dependent children. - ✔✔filing status
|| || || || || || || || || ||
Saving for retirement can also save taxes by making contributions to a _____. - ✔✔401(k) plan
|| || || || || || || || || || || || || || ||
If a person is in a 25% income bracket, they could save 25% of the money they deposit into a
|| || || || || || || || || || || || || || || || || || || ||
_____. - ✔✔traditional IRA || || ||
, 2
Financial counseling clients can manage some of the risks in life by having the right types and
|| || || || || || || || || || || || || || || || ||
amounts of _____. - ✔✔insurance || || || ||
An _____ in a car you financed at the credit union could be held by both you and the credit union.
|| || || || || || || || || || || || || || || || || || || || ||
- ✔✔insurable interest
|| ||
You can make a better choice about insurance coverage if you evaluate your _____. - ✔✔risks
|| || || || || || || || || || || || || || ||
An _____ can give you protection if someone sues you for an accident on your property. -
|| || || || || || || || || || || || || || || || ||
✔✔umbrella liability policy || ||
_____ can help manage the costs of insurance. - ✔✔deductibles and policy limits
|| || || || || || || || || || || ||
_____ provides the right for an employee that is terminated or resigns to keep their medical
|| || || || || || || || || || || || || || || ||
insurance for 18 months if they pay the cost (full amount of the premium). - ✔✔cobra
|| || || || || || || || || || || || || || ||
Medicare _____ is free. - ✔✔part A || || || || || ||
Medicare _____ is paid for by the insured. - ✔✔part B
|| || || || || || || || || ||
Liability, personal injury or medical coverage, uninsured or under-insured coverage,
|| || || || || || || || || ||
comprehensive, collision, and towing and roadside assistance, and car rental coverage are the || || || || || || || || || || || || ||
seven types of _____ available to consumers. - ✔✔auto coverage
|| || || || || || || || ||
The rule of 72, or _____, shows how long it will take for a person's investment to double. (72 /
|| || || || || || || || || || || || || || || || || || || ||
current interest rate = number of year required to double original investment) - ✔✔compounding
|| || || || || || || || || || || || ||
_____ is the ability to convert an investment into cash. - ✔✔liquidity
|| || || || || || || || || || ||
