QBA IV Review - Answer Key

Transcription

1 QBA IV Review - Answer Key. Individuals pay taxes to support only the federal government. X. Who can levy and collect taxes? Federal government State Government County Government City Government X All of the above 3. Local taxes include both the county and city taxes you will pay. 4. Most people will pay income, sales, property and hidden taxes during their lifetime. 5. Which of the following is <span style="text-decoration: underline;">not</span> a major tax category? Income Taxes Sales Taxes Property Taxes Hidden Taxes X. Income taxes are taxes on the property you own. X. All federal, state and local governments levy income taxes. X. Income consists of three (3) different categories: earned income, unearned income and taxes. X QBA IV Review - - Printed: //0 Page of 34 Copyright (c) 00-0 REMTECH, inc.

2 9. The term for money an individual receives from their investments. X Unearned Income Earned Income Tax Refund Federal Tax Qualified Withdrawal 0. Everyone who receives income above the amounts specified by the IRS must pay federal income taxes.. Not all states require their residents to pay state income taxes.. You will pay sales taxes on most of the goods and some of the services you purchase. 3. What is amount of Sales Taxes owed on a pair of $50.00 shoes if the Total Sales Taxes where you live is 9%? $54.50 $45.00 X $4.50 $ All city, county and state governments levy sales taxes. X 5. Who collects and sends the sales taxes to the different levels of government? Local governments collect them all and send the states their share X Merchants collect them when you buy anything taxable The IRS computes what you owe when you pay your income taxes Credit Card companies.. You will pay property taxes on your home, land, automobiles and other types of property. QBA IV Review - - Printed: //0 Page of 34 Copyright (c) 00-0 REMTECH, inc.

3 . This is the type of taxes that are based on the current value of taxable houses, land, autos, or other large possessions of an individual. Income Taxes Sales Taxes X Property Taxes Hidden Taxes. When buying or paying for an item below, which of the following does <span style="text-decoration: underline;">not</span> incur or include a Hidden Tax? Your Telephone Bill An Airplane Ticket Your Utility Bills (Gas, Water, Sewer, or Electric) Gasoline for your car X 9. You will pay hidden taxes when you rent a car, stay in a hotel or pay for insurance. 0. Hidden taxes do not increase the cost of goods or services. X. The United States currently uses a pay-as-you-earn system of collecting income taxes.. Under the pay-as-you-earn system, an employer is required by law to withhold income taxes from the amount they pay an employee each pay period. 3. are required to pay income taxes when their income is above the specified amount. Those above age 5 Those above age Those between the ages of 5 and X All individuals QBA IV Review - - Printed: //0 Page 3 of 34 Copyright (c) 00-0 REMTECH, inc.

4 4. This is the total amount of income an individual receives from all sources in one year before deductions and taxes are subtracted. X Gross Income Tax Deductions Taxable Income Unearned Income 5. What does the acronym 'IRS' stand for? Intelligent Revenue System X Internal Revenue Service Internet Reliability Service International Revenue Service. The amount of income taxes you must pay each year will be based on your total gross income for the year. X. All taxpayers are allowed to claim the standard deduction and at least one personal exemption.. The federal income tax system is a tax system. parliamentary proportional X progressive political 9. The federal income tax system requires those earning more income to pay more taxes. 30. The current federal income tax system is broken up into different tax brackets ranging from. 0% to 35%.5% to 39.% X 0% to 39.% 5% to 4.5% 5 QBA IV Review - - Printed: //0 Page 4 of 34 Copyright (c) 00-0 REMTECH, inc.

5 3. The maximum federal income tax rate is 39.% 5 3. Unlike federal income taxes, Social Security taxes and Medicare taxes are based on your. Unearned income Earned income Taxable income X Gross income 33. Social Security taxes are subject to a cap or maximum income amount. 34. Medicare taxes are not subject to a cap or maximum income amount. 35. The current Medicare tax rate is.45% of your gross income. 3. Employers are required by law to withhold or pay an amount the amount the employee pays in Social Security and Medicare taxes each year to the federal government. less than X equal to greater than 4 times 3. All states have state income taxes. X QBA IV Review - - Printed: //0 Page 5 of 34 Copyright (c) 00-0 REMTECH, inc.

6 3. If your state has a state income tax, the amount of state income taxes you must pay is based on your for the current year. unearned income X taxable income gross income total income 39. The actual state income tax rates and deductions allowed can vary radically from state to state. 40. Local governments such as county and city governments can levy income taxes. 4. Sales taxes are based on the size of the item purchased. X 4. Sales taxes are the taxes individuals pay when they sell their home. X 43. Sales taxes are based on the cost of the item purchased and the. size of the item purchased retail rating guide number of items purchased X sales tax rate 44. Which of the following is <span style="text-decoration: underline;">not</span> considered a retail item? Clothing Music CD Cleaning Supplies X A House 45. Sales taxes are collected directly by the federal government. X QBA IV Review - - Printed: //0 Page of 34 Copyright (c) 00-0 REMTECH, inc.

7 4. The sales taxes are sent to the state and local governments imposing the taxes on a regular basis. 4. What does the acronym CES stand for? Client Expense Statistics Continual Expense Survey X Consumer Expenditure Survey Cash Evaluation System 4. The government agency responsible for tracking income, expenses and labor statistics in the United States. Consumer Expenditure Survey Social Security Internal Revenue Service X Bureau of Labor Statistics 49. You will pay taxes in of the 9 expense categories defined by the Consumer Expenditure Survey. 50. Hidden taxes are imposed on transactions rather than an individual or business. 5. Hidden taxes are much broader in scope than income or sales taxes. X 5. You pay hidden taxes when you pay utility bills, drive your car and stay in a hotel. 53. Hidden taxes can be levied by the federal, state and local governments. QBA IV Review - - Printed: //0 Page of 34 Copyright (c) 00-0 REMTECH, inc.

8 54. Pay-as-you-earn is the method by which the government collects income taxes. 55. An employer is to withhold income taxes from the money paid to an employee each pay period. not accountable not required by law X required by law prohibited 5. This is the process where employers deduct income taxes from their employee's pay each pay period and forward it to the different levels of government at regular intervals. Income taxes X Withholding Federal taxes Social Security 5. Most taxpayers prefer to pay the total amount of income taxes owed at one time. X 5. Payroll Deductions reduce the amount of your total pay, resulting in your take home pay being lower than your gross (total) pay. 59. The two types of payroll deductions are. Employee and Employer Gross and Taxable Voluntary and Permanent X Required and Voluntary Earned and Unearned 0. Some payroll deductions are required, but others are voluntary. QBA IV Review - - Printed: //0 Page of 34 Copyright (c) 00-0 REMTECH, inc.

9 . Required payroll deductions are based solely on your taxable pay. X. payroll deductions are the deductions your employer must subtract from your pay because federal or state law orders them to do so. Coincidental Large X Required Voluntary Permanent 3. Which of the following is <span style="text-decoration: underline;">not</span> a required payroll deduction? Income Taxes Social Security Taxes Medicare Taxes X Property Taxes All of the above 4. These are taxes paid by employees and employers to the federal government to pay for health care benefits for retired and disabled workers. Local Income Taxes Social Security Taxes X Medicare taxes Occupational taxes Federal Income Taxes 5. Gross pay is equal to taxable pay minus tax deductions. X. Social Security and Medicare taxes are deducted from your taxable pay. X. Federal, state and local income taxes are deducted from your. gross pay X taxable pay take home pay income taxes QBA IV Review - - Printed: //0 Page 9 of 34 Copyright (c) 00-0 REMTECH, inc.

10 . Tax deductions the amount of income that an individual must pay income taxes on. X reduce triple increase perpetuate 9. Verbally telling your employer you want certain voluntary payroll deductions subtracted from your pay is adequate. X 0. Some voluntary payroll deductions are subtracted from your gross pay and some are subtracted from your taxable pay.. Which of the following voluntary payroll deductions is subtracted from your gross pay? Health plan Dental plan Insurance plan Union dues X. The amount of money you take home is exactly the same as the amount you are paid each pay period. X 3. Take home pay is the amount of money you take home and are free to spend. 4. Your take home pay depends on the amount of your required and voluntary deductions. 5. A budget is a summary of your investments over a given period of time. X QBA IV Review - - Printed: //0 Page 0 of 34 Copyright (c) 00-0 REMTECH, inc.

11 . This is the name for a formal plan documenting how an individual's income will be spent in the future. Expenditure Plan Income Plan X Spending Plan Game Plan Budget. Savings can still be created when more is spent than what is taken home. X. You cannot use your savings to pay unexpected expenses in the future. X 9. You are, by definition, a financially responsible individual if you track every dollar you spend. X 0. Because of advances in banking technology, it is much harder today to spend more money than you have than it has ever been in the past. X. Money spent in the primary budget categories only affects the quality of your life. X. Money spent in the secondary budget categories affects the quality of your life. 3. A budget should have and budget categories. odd, even checks, balances short, long-term X primary, secondary QBA IV Review - - Printed: //0 Page of 34 Copyright (c) 00-0 REMTECH, inc.

12 4. Income is money received from working and investments. 5. Investments are financial instruments such as: Money Market Accounts Real Estate Stocks Bonds X All of the above. This is the general term for the money you actually get in your paycheck and are free to spend. Gross Pay Income After Tax Income X Take Home Pay. This is the term for the total amount of money paid to an employee by an employer, before taxes and other deductions are subtracted. X Gross Pay Income After Tax Income Take Home Pay. Expenditures are monies spent in the different budget categories. 9. A short-term budget is typically created for 5 years into the future. X 90. A long-term budget is typically created for one or two years. X 9. A budget is dynamic and should be adjusted when your personal situation changes. QBA IV Review - - Printed: //0 Page of 34 Copyright (c) 00-0 REMTECH, inc.

13 9. How often should you review and update your budget? Almost every Week X At least once a Year, if not more. Not more than once every 5 Years, so it has a chance to work properly Every 0 Years when you are working, every 5 Years when you are retired 93. Creating a budget provides benefits whether or not you use it regularly. 94. If you are realistic and fully embrace the concept of living within a budget, a budget can provide many benefits. 95. Which of the following is a benefit that results from creating and regularly using a budget? Live within your means Know financial situation at all times Improves communication with family members You are able to reach financial goals X All of the above 9. A budget allows your money to control you instead of you controlling your money. X 9. The average individual has over six different sources of income. X 9. An employee's Pay Period is: The time period their wage is based on ($/hour, $/year) The fiscal year their pay and deductions are based on X The length of time between paydays The time between when their paycheck is dated and when it is deposited in the bank 99. The average individual knows exactly where all their money is spent. X QBA IV Review - - Printed: //0 Page 3 of 34 Copyright (c) 00-0 REMTECH, inc.

14 00. Creating a budget is 5% psychological and 95% manual labor. X 0. A budget is simply a tool that helps individuals understand when, where and why they are spending their money. 0. First step to creating and using a budget is determining the amount of income you'll receive after. the holidays calculating your gross income dividends X tax deductions 03. Income includes money received from. work tips gifts investments X All of the above 04. Determining how much money you have coming in will also identify the maximum amount you can spend. 05. Always consider your gross income as the logical cap to your spending. X 0. You should make a concerted effort to spend more money than you take home. X never always sometimes conveniently QBA IV Review - - Printed: //0 Page 4 of 34 Copyright (c) 00-0 REMTECH, inc.

15 0. Potential savings are only created when you spend each pay period. more money than your take home pay the same amount of money you bring home X less money than you bring home all of the money in your gross income 0. You should consider saving a portion of your income only if you do not own a house or real estate. X 09. Many experts recommend you should consider 5% to 50% of your income as the maximum amount you should spend each pay period. X 0. Budget categories are divisions or collection groups individuals create within their budget to collect and analyze similar expenses.. The primary budget categories are also known as your needs.. is generally <span style="text-decoration: underline;">not</span> considered a primary budget category. Housing Utilities Food Transportation X Leisure 3. The secondary budget categories are also known as your wants. 4. is generally considered a secondary budget category. Clothing Leisure Education Miscellaneous X All of the above QBA IV Review - - Printed: //0 Page 5 of 34 Copyright (c) 00-0 REMTECH, inc.

16 5. Your budget categories should reflect how your friends spend their money. X. It is important to record of your expenses in one of the budget categories. most X all a few the bulk. The less accurate your budget, the better off you will be when needing to make quick money management decisions. X. Small purchases over time can become a significant expense. 9. Primary budget categories are essential to your quality of life rather than your health and welfare. X 0. Housing, utilities, food, transportation and health care are primary budget categories.. It is simple to reduce money spent in the primary budget categories because these categories only affect your health and welfare. X. Eliminating some of the primary budget categories is usually quite easy. X 3. Reducing your expenses in some of the primary budget categories is impossible. X QBA IV Review - - Printed: //0 Page of 34 Copyright (c) 00-0 REMTECH, inc.

17 4. Which of the following helps to reduce money spent in the primary budget categories? Eat at home rather than dine out Keep an older vehicle rather than purchase a new one Move to a cheaper apartment X All of the above 5. Secondary budget categories affect your quality of life rather than your health and welfare.. Secondary budget categories include. Clothing Leisure Education Miscellaneous X All of the above. Reducing the amount of money spent in the secondary rather than primary budget categories is easier because they do not affect your health and welfare.. Which of the following helps to reduce money spent in the secondary budget categories? X Simply rent a movie rather than go out to the movie theater Keep an older vehicle rather than purchase a new one Move to a cheaper apartment Eat at home rather than dine out All of the above 9. Which of the secondary budget categories is the most important to your financial situation? Clothing Leisure X Education Miscellaneous QBA IV Review - - Printed: //0 Page of 34 Copyright (c) 00-0 REMTECH, inc.

18 30. Money spent in the secondary budget categories is sometimes called spending. mandatory optional open X discretionary 3. One recommended use of your emergency savings is to pay for things such as recreation and vacations. X 3. Most experts recommend using your retirement savings to pay for unexpected expenses. X 33. You should have an amount equal to 3 to months of your current take home pay in emergency savings. 34. Which of the following is one of the best places to deposit your emergency savings? Stocks X Money market account CD's Savings account 35. You should adjust your spending to ensure you always have an adequate amount of emergency savings. 3. If you use money from your emergency savings, you should adjust your spending until it's at least 50% replenished. X 3. Retirement savings are the money you save or invest after you retire. X QBA IV Review - - Printed: //0 Page of 34 Copyright (c) 00-0 REMTECH, inc.

19 3. Social Security benefits are designed to cover only about 40% of the living expenses for the average retiree. 39. Experts agree there is a direct correlation between your level of education and your lifetime earnings. 40. The cost of sending children to college is increasing each year. 4. It's much harder to reduce the amount spent in the primary budget categories than secondary budget categories. 4. To create savings you must spend more than you make. X 43. If you should receive a windfall, most financial experts say you should first. adjust your secondary budget category spending increase your primary budget category spending invest in a vacation home or condo X reduce or eliminate high-interest debt. 44. A budget should help you manage your money and increase your savings, thus decreasing your net worth. X 45. Which of the following is an indicator that your budget is working? You are able to save money each budget period You do not spend more than you make You can pay for an unexpected expense without it disrupting your life X All of the above 4. You are living within your means when you are able to pay some of your bills and have room to put the rest on your credit cards. X QBA IV Review - - Printed: //0 Page 9 of 34 Copyright (c) 00-0 REMTECH, inc.

20 4. Everyone had access to abundant credit before 90. X 4. What does 'FED' stand for? Federal Education Department First Education Department X Federal Reserve System Fiscal Exchange Department 49. Obtaining credit is more strict today than prior to 90. X 50. What is the primary assumption of the Utility Theory of Economics? All economics are created equal Supply and demand control the economic markets X It's everyone's goal to maximize their personal wealth What goes up must come down The price of fuel and utilities affects everyone's budget 5. Young people acquire their knowledge of spending from their parents, friends and by trial and error. 5. Young people often give in to peer pressure and the urge of instant gratification. 53. Stress and/or anxiety placed on an individual by their friends to act or respond in a manner generally accepted by their friends is usually called this. Friend Rapport X Peer Pressure Steady Relationship Job Anxiety Ethnic Tolerance 54. Most major life events you experience will not affect your level of spending. X QBA IV Review - - Printed: //0 Page 0 of 34 Copyright (c) 00-0 REMTECH, inc.

21 55. What does the acronym 'BLS' stand for? Basic Life Services Business Legal Services X Bureau of Labor Statistics Banking Legal Society 5. Based on the Consumer Expenditure Survey (CES), which adult age group spends more on health care? Adults 5-34 Adults Adults 55-4 X Adults 5-4 An error has occurred while processing HtmlTextBox 'HtmlTextBox': An error occurred while parsing EntityName. Line, position. 5. Debt can be classified as or debt. bad, worse debit, credit card housing, health care X installment, revolving 5. You will make regular and equal payments to repay debt. Regular X Installment Revolving Bad Credit Card 59. Installment debt is money owed via a loan agreement. X long-term short-term handshake credit card 0. Installment debt is also called open-end debt. X QBA IV Review - - Printed: //0 Page of 34 Copyright (c) 00-0 REMTECH, inc.

22 . A is an example of revolving debt. Home Mortgage Car Loan X Credit Card Savings Account. You will be required to make a minimum monthly payment to repay revolving debt. 3. Revolving debt is also called. X open-end debt close-end debt incremental debt equal debt 4. This is the name for a proceeding in which an individual or business, unable to meet their financial obligations, petitions the court for protection from their collectors. Liquidation X Bankruptcy Insolvency Estate sale 5. The number of individuals declaring bankruptcy has decreased to less than 0,000 per year since 000. X. Which of the following do financial experts indicate as the reason the typical consumer has more debt today than in the past? Low interest rates Internet shopping Easy access to credit College tuition and fees X All of the above. Not all debt is bad. QBA IV Review - - Printed: //0 Page of 34 Copyright (c) 00-0 REMTECH, inc.

23 . Good debt is debt acquired when purchased assets increase in value while owned or provide distinct advantages while the debt is being repaid. 9. Purchasing items on credit that increase in value while you are paying for them is considered good debt. 0. Purchasing wasting assets on credit is considered bad debt.. A vacation is an example of possibly bad debt.. You have too much debt if your credit card limit is higher than your monthly take home pay. X 3. Getting out of debt is. easy if you get a second job impossible once your debt is more than your income illegal unless you file for bankruptcy X possible, but rarely easy 4. "Keeping up with the Joneses" is the common term for the act or process of never spending more money than you currently have. X 5. Getting out of debt requires you to adjust your lifestyle and spending habits to match your income.. It is better to pay interest on debt than to earn interest on an investment. X QBA IV Review - - Printed: //0 Page 3 of 34 Copyright (c) 00-0 REMTECH, inc.

24 . People typically find that many of their needs are really wants and can be reduced or eliminated.. Credit is technically amount money available to you, but held by someone else. an unlimited an undefined a large X a defined 9. The amount of credit you use is added to the total amount of credit available to you. X 0. Your debt increases by the amount of money you use on credit, plus the interest you must pay.. There are only disadvantages to using credit. X. Most people would never be able to purchase a vehicle or buy a home without credit. 3. Businesses reserve their best credit terms and rates for those who use credit responsibly. 4. An increase in the increases the burden of making payments for borrowers. term fees X interest rate handling QBA IV Review - - Printed: //0 Page 4 of 34 Copyright (c) 00-0 REMTECH, inc.

25 5. Easy access to credit makes it harder for some individuals to make wise spending decisions.. Credit makes retail items available to individuals who do not have enough cash to purchase them.. When you buy an item on credit, you are paying the. sticker price for the item sales taxes interest X All of the above. A credit bureau is a company that collects information relevant to your employment history to see if your current paycheck covers your debt. X 9. A credit bureau is also called a debt collection agency. X 90. There is only one government-approved major credit bureau in the United States. X 9. Equifax, Experian and TransUnion are the three major credit bureaus in the U.S. 9. A credit bureau does not make credit decisions for businesses. QBA IV Review - - Printed: //0 Page 5 of 34 Copyright (c) 00-0 REMTECH, inc.

26 93. This is the term for a formal report of an individual's credit history prepared by one of the major credit bureaus. The report contains an individual's complete payment history and status of all credit accounts. Bureau Report Home Report X Credit Report Debit Report 94. Each year you are entitled to one free credit report from each of the major credit bureaus. 95. You should request a credit report each year to ensure the information in the report is correct. 9. A credit report has ten major sections. X 9. A credit score is a single number from 0 to 00. X 9. Less than 5% of individuals have a credit score higher than A credit score indicates how likely you are to repay a debt. 00. Credit scores help businesses assess credit risk more fairly for all individuals. 0. A credit score is also called a FED score. X QBA IV Review - - Printed: //0 Page of 34 Copyright (c) 00-0 REMTECH, inc.

27 0. You should not worry about establishing credit until you actually need it. X 03. Which of the following is <span style="text-decoration: underline;">not</span> a way to begin establishing credit? Opening a checking account Starting a savings account Applying for a small personal loan X Acquiring a P.O. Box 04. It is solely up to you to use credit responsibly. 05. Which of the following is a way to show businesses you understand credit and will use it responsibly? Never "max out" a credit card Always pay bills on time Never purchase more on credit than you can repay Only have or credit cards X All of the above 0. Most experts agree it is easier to overcome debt problems than to fully learn to use credit responsibly when you are young. X 0. Once your credit is damaged, you must pay off your debt and begin to pay all your bills on time. 0. Credit cards were first used in the U.S. during the. 50's X 90's 940's 90's 90's 09. A debit card represents a line of credit available to the cardholder. X QBA IV Review - - Printed: //0 Page of 34 Copyright (c) 00-0 REMTECH, inc.

28 0. The company issuing the credit card will deposit money into your bank account each time you use their card. X. A Credit Limit refers to the maximum amount of credit available to an individual, as established with their bank or financial institution.. Fortunately for all, it is more difficult to misuse a credit card than it is to use one responsibly. X 3. There are many types of credit cards available and each type has advantages and disadvantages. 4. A credit card's terms and conditions specify. the interest rate your grace period for payment the interest calculation method the company's list of fees X All of the above 5. Which of the following is <span style="text-decoration: underline;">not</span> one of the major types of credit card classifications? X Designer Cards Bank Credit Cards Travel/Entertainment Credit Cards House Credit Cards. Bank credit cards are issued by banks to other credit companies. X. Bank credit cards are not accepted by most retail stores to make purchases. X QBA IV Review - - Printed: //0 Page of 34 Copyright (c) 00-0 REMTECH, inc.

29 . Which of the following best describes the three types of bank credit cards? Typical, Debt and Secured Standard, Debt and Protected X Standard, Debit and Secured Standard, Charge and Safe 9. A standard credit card comes with a variable line of credit and only a fixed APR. X 0. The purchase amount made with a debit card is automatically withdrawn from your checking account.. Debit cards are sometimes called delayed payment cards. X. A secured credit card allows individuals with bad credit to use a credit card at secure businesses and banks. X 3. A secured credit card can only be used to cover a purchase if the holder of the card has enough money. with them at time of purchase X in an account with the bank issuing the card from direct deposit to the bank from their take home pay on other credit cards 4. Travel/Entertainment cards work exactly like debit cards. X 5. Travel/Entertainment cards are used almost exclusively by teenagers or college students. X. House credit cards are issued by banks. X QBA IV Review - - Printed: //0 Page 9 of 34 Copyright (c) 00-0 REMTECH, inc.

30 . House credit cards are issued by banks and can be used in all retail stores. X. Most credit card companies will send you a billing statement. daily weekly X monthly annual 9. Statistics show that roughly / of all credit cardholders pay their accounts in full each month. 30. A Grace Period is the length of time, after the payment due date, an individual has to pay a credit card balance in full and avoid having to pay interest on the balance. 3. The is the least amount you can pay on credit card debt each billing period. monthly fee minimum interest rate X minimum monthly payment prime lending rate 3. The term for anything with monetary value owned by an individual or business or is owed to that individual or business. X Asset Credit Fees Debt Collateral 33. The interest rate for credit cards is significantly higher than the interest rate for regular bank loans. 34. Credit card debt is not secured by any of your assets. QBA IV Review - - Printed: //0 Page 30 of 34 Copyright (c) 00-0 REMTECH, inc.

31 35. The APR is the annual interest rate charged when you pay your total balance before the grace period expires. X 3. You should always pay more than the minimum monthly payment amount on credit card debt. 3. Besides interest charges on credit card debt, there are many other fees cardholders can be charged. 3. All credit cards are the same and charge the same fees. X 39. Which of the following is <span style="text-decoration: underline;">not</span> a common fee associated with credit cards? Late Charge Fee X Early Payment Fee Over-Limit Fee Cash Advance Fee 40. Which of the following methods is used by credit card companies to calculate the amount interest to be charged when the balance is not paid in full each billing period? Previous balance method Adjusted balance method Average daily balance method X All of the above 4. Each person is and has personal information that only applies to them. single responsible X unique identical 4. A movie stub, cash receipt and bus token are all considered personal information. X QBA IV Review - - Printed: //0 Page 3 of 34 Copyright (c) 00-0 REMTECH, inc.

32 43. It can take significant time and money to restore your credit when your identity is stolen. 44. The Fair Credit Reporting Act limits the amount of money you are liable for if your identity is stolen. 45. Most experts agree it is to guard your personal information than to repair your credit after a thief has abused it. impossible X easier harder time consuming 4. Hacking into computers to gain access to personal information is one of the most common methods of stealing a person's identity. 4. Some thieves steal mail from your mailbox to gain access to your personal information. 4. You should only keep the personal information you need on a regular basis in your wallet or purse. 49. It is okay to give out your personal information over the phone if you don't know the caller, as long as you don't buy something from them. X 50. Spoofing or cloned websites are not a problem for either the government or major corporations. X 5. Some identity thieves resort to dumpster diving and will go through your trash to gain access to your personal information. QBA IV Review - - Printed: //0 Page 3 of 34 Copyright (c) 00-0 REMTECH, inc.

33 5. If you have anti-virus software, identity thieves are incapable of using fake s to make you think they are from a company you routinely do business with. X 53. You should be aware of shoulder surfers attempting to invade your space when conducting business transactions. 54. Knowledge is the key to preventing and recovering from identity theft. 55. Your Social Security number is not considered an important part of your personal information, since only the IRS uses it. X 5. It is not necessary for individuals to monitor their credit history to prevent identity theft. X 5. Which of the following is <span style="text-decoration: underline;">not</span> a way to prevent someone from gaining access to your personal information? Guarding your Social Security number Monitor your credit history X Pay all bills on time Shred bills containing personal information All of the above 5. Mailing all correspondence from your home mailbox is the best way to assure that someone cannot steal your personal information. X 59. Time is not an important factor when your identity is stolen, since you are protected by law from being liable for more than a minimum amount. X 0. If your identity is stolen, you need to contact the three major credit bureaus and have them place a fraud alert on your credit history. QBA IV Review - - Printed: //0 Page 33 of 34 Copyright (c) 00-0 REMTECH, inc.

34 . If once a victim of identity theft and you notify the Federal Trade Commission, you cannot become a target of identity theft for at least years. X QBA IV Review - - Printed: //0 Page 34 of 34 Copyright (c) 00-0 REMTECH, inc.