FCS 323 - Family and Individual Money Management » Spring 2022 » Chapters 17 Quiz

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Question #1
To be fully insured for Social Security retirement benefits, a worker must have _____________________ Social Security credits.
A.   10
B.   40
C.   6
D.   50
Question #2
Employer-sponsored retirement plans that are approved by the IRS are said to be
A.   exempt
B.   vested
C.   endowed
D.   qualified
Question #3
The amount of one's retirement account value depends directly on the success of investments in the retirement fund if your retirement account is a ____________ retirement plan.
A.   cash-balance
B.   defined-benefit
C.   defined-contribution
D.   vested
Question #4
People who start saving and investing for retirement during their twenties should aim to reserve _______________ percent of their pretax income every year.
A.   9 to 11
B.   19 to 22
C.   16 to 18
D.   12 to 15
Question #5
The process by which employees obtain nonforfeitable rights to their retirement benefits that cannot be taken away in case of dismissal or resignation is called
A.   funding
B.   catch-up
C.   vesting
D.   integration
Question #6
The process by which a decedent's estate is settled and the assets distributed by the courts to legal heirs is called
A.   intestate.
B.   estate planning.
C.   community property distribution.
D.   probate.
Question #7
Which of the following is not an example of nonprobate property?
A.   A retirement account such as a 401(k) or IRA
B.   A bank account with a payable-on-death designation
C.   Property owned by joint-tenancy with rights of survivorship
D.   Property designated in a will
Question #8
The person named in a will who identifies assets, collects any money due, pays off debts, liquidates assets, files final income tax and estate tax returns, and with the court's permission distributes the balance of any remaining money and property to the beneficiaries is the
A.   grantor.
B.   guardian.
C.   probate judge.
D.   executor.
Question #9
The right of escheat gives a deceased's property to the
A.   parents.
B.   state of residence.
C.   surviving spouse.
D.   children.
Question #10
Your preferences for funeral and burial, obituary and location of important documents can best be communicated in your
A.   will.
B.   letter of last instructions.
C.   trust.
D.   codicil.

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