Business and Personal Finance © 2007

Chapter 15: Retirement and Estate Planning

Practice Tests

1
The _______ raised the retirement age at which individuals can receive full benefits.
A)defined-benefit plan
B)Social Security program
C)Keogh plan
D)defined-contribution plan
2
The salary reduction plan for an employee at a tax-exempt, or nonprofit, institution is called a _______.
A)401(k) plan
B)403(b) plan
C)Social Security
D)Keogh plan
3
A person can transfer all or a portion of the taxable distribution from his or her retirement plan to a _______.
A)rollover IRA
B)spousal IRA
C)regular IRA
D)Roth IRA
4
A(n) _______ is a contract purchased from an insurance company that guarantees a future fixed or variable payment to the purchaser for a certain number of years, or for life.
A)Keogh plan
B)rollover IRA
C)annuity (insurance)
D)defined-contribution plan
5
_______ are the people who will have the legal right to your assets when you die.
A)guardians
B)executors
C)attorneys
D)heirs
6
An executor is a person who is willing and able to perform the tasks involved in carrying out a _______.
A)living will
B)will
C)codicil
D)trust
7
In a _______ a person expresses whether he or she wants to be kept alive by artificial means if terminally ill.
A)will
B)trust
C)codicil
D)living will
8
A well-prepared _______ includes insurance papers, a letter of last instruction, and marriage certificates and divorce papers, among other documents.
A)estate
B)estate plan
C)trust
D)living will
9
A _______ is a legal document that authorizes someone to act on your behalf.
A)will
B)living will
C)power of attorney
D)letter of last instruction
10
Cash that a married couple gives to another person is subject to a(n) _______ if the amount is over $22,000.
A)estate tax
B)inheritance tax
C)gift tax
D)codicil
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