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ABA CTFA Practice Test - Questions Answers, Page 38

List of questions

Question 371

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Many young people receive health insurance benefits through their parents. Which of the following statements is true about health insurance coverage?

Young people don't need health insurance because they are so healthy
Young people don't need health insurance because they are so healthy
You continue to be covered by your parents' insurance as long as you live at home, regardless of your age
You continue to be covered by your parents' insurance as long as you live at home, regardless of your age
You are covered by your parents' insurance until you marry, regardless of your age
You are covered by your parents' insurance until you marry, regardless of your age
If your parents become unemployed, your insurance coverage may stop, regardless of your age
If your parents become unemployed, your insurance coverage may stop, regardless of your age
Suggested answer: D
asked 16/09/2024
Yuri Shpovlov
44 questions

Question 372

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If your credit card is stolen and the thief runs up a total debt of $1,000, but you notify the issuer of the card as soon as you discover it is missing, what is the maximum amount that you can be forced to pay according to federal law?

Nothing
Nothing
$50
$50
$500
$500
$1000
$1000
Suggested answer: B
asked 16/09/2024
Raymond LaFrance
55 questions

Question 373

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Kelly and Pete just had a baby. They received money as baby gifts and want to put it away for the baby's education. Which of the following tends to have the highest growth over periods of time as long as 18 years?

A U.S. government savings bond
A U.S. government savings bond
A savings account
A savings account
A checking account
A checking account
Stocks
Stocks
Suggested answer: D
asked 16/09/2024
Roberto Recine
52 questions

Question 374

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Maria worked her way through college earning $20,000 per year. After graduation, her first job pays $40,000. The total dollar amount Maria will have to pay in federal income taxes in her new job will:

Stay the same as when she was in college
Stay the same as when she was in college
Be lower than when she was in college
Be lower than when she was in college
Double, at least, from when she was in college
Double, at least, from when she was in college
Go up a little from when she was in college
Go up a little from when she was in college
Suggested answer: C
asked 16/09/2024
hesham azarkan
50 questions

Question 375

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A voluntary program under Medicare that provides payments for services not covered under basic hospital insurance is called:

Supplementary medical insurance
Supplementary medical insurance
Medicare
Medicare
National health care
National health care
Blue cross
Blue cross
Suggested answer: A
asked 16/09/2024
Przemysław Doczkal
49 questions

Question 376

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Doug must borrow $12,000 to complete his college education. Which of the following would NOT be likely to reduce the finance charge rate?

If his parents took out an additional mortgage on their house for the loan
If his parents took out an additional mortgage on their house for the loan
If the loan was insured by the federal government
If the loan was insured by the federal government
If he went to a state college rather than a private college
If he went to a state college rather than a private college
If his parents co-signed the loan
If his parents co-signed the loan
Suggested answer: C
asked 16/09/2024
Daniel Ramirez
52 questions

Question 377

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If you had a savings account at a bank, which of the following would be correct concerning the interest that you would earn on this account?

Sales tax may be charged on the interest that you earn
Sales tax may be charged on the interest that you earn
You cannot earn interest until you pass your 18th birthday
You cannot earn interest until you pass your 18th birthday
Earnings from savings account interest may not be taxed
Earnings from savings account interest may not be taxed
Income tax may be charged on the interest if your income is high enough
Income tax may be charged on the interest if your income is high enough
Suggested answer: D
asked 16/09/2024
hesham azarkan
50 questions

Question 378

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Under which of the following circumstances would it be financially beneficial to you to borrow money to buy something now and repay it with future income?

When some clothes you like go on sale
When some clothes you like go on sale
When the interest on the loan is greater than the interest you get on your savings
When the interest on the loan is greater than the interest you get on your savings
When you need to buy a car to get a much better paying job
When you need to buy a car to get a much better paying job
When you really need a weeklong vacation
When you really need a weeklong vacation
Suggested answer: C
asked 16/09/2024
Alexander Castro
47 questions

Question 379

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Retirement income paid by a company is called:

Rents and Profits
Rents and Profits
Social security
Social security
401(k)
401(k)
Pension
Pension
Suggested answer: D
asked 16/09/2024
Lionel Fitzgerald Gweth
45 questions

Question 380

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Many people put aside money to take care of unexpected expenses. If John and Jenny have money put aside for emergencies, in which of the following forms would it be of LEAST benefit to them if they needed it right away?

Stocks
Stocks
Saving account
Saving account
Invested in a down payment in the house
Invested in a down payment in the house
Checking account
Checking account
Suggested answer: C
asked 16/09/2024
JR Gee
38 questions
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