ARE 142 Fall2009 Midterm 1 _Form A_

ARE 142 Fall2009 Midterm 1 _Form A_ - FormA Midterm1...

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1 Form A Midterm 1 ARE 142 Fall 2009 Name: _________________________ Student ID: _____________________ Part I: Multiple Choice (60 points total). There are 15 questions; each is worth 4 points. Each question has only one correct answer. Enter the answer on your SCANTRON. Enter your name, student ID, and test form on your scantron too. 1. For most tax payers, their average tax rate is lower than their marginal tax rate. A) True B) False 2. If you are in a 25 percent tax bracket then every dollar of your adjusted gross income will be taxed at 25 percent. A) True B) False 3. Contributing $2,000 into a tax-deferred retirement plan in a 28% tax bracket will save A) $140. B) $280. C) $560 D) $2000 E) it depends on the exemptions and deductions claimed. 4. Which of the following would offset your tax liability in a direct dollar for dollar manner and may actually increase your tax refund beyond the amount paid during the tax year? A) tax exemption B) tax deduction C) tax credit D) tax adjustment E) none of the above 5. What APY do ING Direct and Charles Schwab currently offer for their savings accounts? A) 0.00% - 0.50% B) 0.51% - 1.00% C) 1.01% - 1.50% D) 1.51% - 2.00%
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2 6. Which of the following two options would yield a higher return? A) An account where you can earn an interest rate of 12% a year compounded annually. B) An account where you can earn an interest rate of 11% a year compounded daily. 7. If you have $50,000 in a savings account at an FDIC-insured bank and that bank goes out of business before you can withdraw your money, which of the following is true? A)
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This note was uploaded on 10/25/2010 for the course ARE 142 taught by Professor Staff during the Fall '08 term at UC Davis.

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ARE 142 Fall2009 Midterm 1 _Form A_ - FormA Midterm1...

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