Unit 2 Test Warm Up 3
1. If you are filing your taxes jointly with your spouse and you have one
child, who is responsible for the information on the tax form? Who must sign
2. Which of the following is allowed as an itemized tax deduction?
Sales tax on the purchase of your car
Interest paid on car loan
Oil change on your car
Tax on purchase of license plate for your car
3. What is the total amount of commission that will have to be paid by the
buyer if the commission is 2% … 100 shares at 30?
4. If the rate of return is the amount earned divided by the original investment,
what is your rate of return if you earned $100 on a $1000 investment?
5. By saving money in your piggy bank you run the risk of someone
stealing your money. Which type of risk would this be?
Unit 2 Test Warm Up
Preferred stock holders receive their dividends
before common share stockholders
Yield can be defined as the percent of return on your investment.
All stocks pay dividends.
4. Owning stock in a company
means that you are an owner in the company
A portion of a companies profits distributed to a
stockholder on the basis of their ownership of a share of stock in the corporation is called
Unit 2 test warm up
governments can issue bonds.
Mutual Funds shares
usually fluctuate up and down slowly.
Passbook savings accounts have
less liquidity than CD’s and Money Markets.
your portfolio helps you survive weak markets. What is the term for a market
that is doing very poorly ?