What is the Patels' net worth using the stated balance-sheet amounts?
A. $455,000
B. $700,000
C. $755,000
D. $1,435,000
Source: Tool 'Creating an asset and liability log,' calculation of net worth as assets minus liabilities -- https://www.consumerfinance.gov/consumer-tools/educator-tools/your-money-your-goals/toolkit/
Ignoring market changes and taxes, how much employer stock would the Chens need to sell to reduce that holding from $280,000 to 10% of their $1,050,000 retirement portfolio?
A. $175,000
B. $105,000
C. $28,000
D. $252,000
Source: Sections 'Diversification' and 'Rebalancing 101,' explaining target allocations and restoring a portfolio to its intended mix -- https://www.investor.gov/introduction-investing/getting-started/asset-allocation
Which expense is most appropriately funded from an emergency reserve rather than a sinking fund for a planned goal?
A. An unexpected essential furnace repair during winter
B. A vacation scheduled and priced nine months in advance
C. A known annual property-tax bill
D. A vehicle replacement planned for three years from now
Source: Section 'What is an emergency fund?' distinguishing unplanned expenses from routine spending -- https://www.consumerfinance.gov/an-essential-guide-to-building-an-emergency-fund/
A municipal bond yields 4.00%, and an investor's marginal federal income-tax rate is 32%. Ignoring state tax, AMT, and other effects, what taxable yield is equivalent?
A. 2.72%
B. 4.32%
C. 5.88%
D. 12.50%
Source: SEC-filed investor explanation under 'Understanding tax-equivalent yield,' defining the before-tax comparison and formula as municipal yield divided by one minus the tax rate -- https://www.sec.gov/Archives/edgar/data/205802/000092881606001487/a_taxexeincfnd.htm
An employee is 40% vested in a $50,000 employer-contribution account and is fully vested in $30,000 of employee elective deferrals. If employment ends now, how much is vested, ignoring earnings allocation after the valuation date?
A. $20,000
B. $32,000
C. $50,000
D. $80,000
Source: Employee Benefits Security Administration retirement-plan FAQ, discussion of vesting and the employee's nonforfeitable right to salary-deferral contributions -- https://www.dol.gov/agencies/ebsa/about-ebsa/our-activities/resource-center/faqs/retirement-plans-and-erisa-consumer
