1. You are examining two different MMMFs. Fund A is tax exempt and pays 4%. Fund B is taxable and pays 7%. You live in a state that imposes no income taxes. At what effective tax rate are the two funds yields identical?
a) 16.67% b) 50.00% c) 20.23% d) 42.86% e) cannot determine from the information provided.
2. Under the new health care bill, not purchasing insurance will result in a fine/tax of
a) there is no penalty b) one half the usual annual premium c) $695 or 2.5% of income d) one month's salary
3. The face amount of a life insurance policy is the amount of money the insured person pays per year of coverage.
a) True b) False