CTFA

CTFA practice questions, page 13 of 35, with answer review and explanations.

Question 61

It is a technique used to reduce taxes in which a taxpayer shifts a portion of income to relatives in lower tax brackets. What is it?

  1. Income shifting
  2. Deductions maximization
  3. Tax deference
  4. Tax evasion

Question 62

A good way to keep your spending in line is to make all household transactions (even fun money or weekly cash allowances) using a tightly controlled:

  1. Checking account
  2. Balance sheet
  3. Budget
  4. Savings account

Question 63

An account offered by credit unions that is similar to interest paying checking accounts offered by the other financial institutions is:

  1. Deposit insurance
  2. Share draft account
  3. Internet bank
  4. Checking and saving accounts

Question 64

It is a type of insurance account that protects funds on deposit against failure of the institution; can be insured by FDIC and the NCUA.

  1. Deposit insurance
  2. Share draft account
  3. Internet bank
  4. Checking and saving accounts

Question 65

_____________ are a popular offering at bank and other depository institutions and competes for deposits with money market and mutual funds.

  1. Money market deposit accounts
  2. Money market mutual funds
  3. Time deposit
  4. Asset management account