兹维博迪金融学第二版试题库5TB

Chapter Five

Household Savings and Investment Decisions

This chapter contains 28 multiple choice questions, 10 short problems, and 9 longer problems.

Multiple Choice

1.Getting a professional degree can be evaluated as ________.

a) a social security decision

b)an investment in human capital

c)an investment in a consumer durable

d) a tax exempt decision

Answer: (b)

2.Suppose you will face a tax rate of 20% before and after retirement. The interest rate is 8%.

You are 30 years before your retirement date and invest $10,000 to a tax deferred retirement plan. If you choose to withdraw the total accumulated amount at retirement, what will you be left with after paying taxes?

a)$51,445

b)$64,000

c)$80,501

d)$100,627

Answer: (c)

3.Suppose you will face a tax rate of 20% before and after retirement. The interest rate is 8%.

You are 30 years before your retirement date and have $10,000 to invest. If you invest this in an ordinary savings plan instead of a tax deferred retirement plan, what amount will you have accumulated at retirement?

a)$51,445

b)$64,000

c)$80,501

d)$100,627

Answer: (a)

4.When your tax rate remains unchanged, the benefit of tax deferral can be summarized in the

rule, “deferral earns you ________.”

a)the after-tax rate of return before tax

b)the pretax rate of return after tax

c)the after-tax rate of return after tax

d)the pretax rate of return before tax

Answer: (b)

5.From an economic perspective, professional training should be undertaken if the ________

exceeds the ________.

a)future value of the benefit; present value of the costs

b)present value of the benefits; future value of the costs

c)future value of the benefits; future value of the costs

d)present value of the benefits; future value of the costs

Answer: (d)

6.Suppose you will face a tax rate of 30% before and after retirement. The interest rate is 6%.

You are 35 years before your retirement date and $2,000 to a tax deferred retirement plan. If you choose to withdraw the total accumulated amount at retirement, what will you be left with after paying taxes?

a)$7,532

b)$10,760

c)$12,298

d)$15,372

Answer: (b)

7.Kecia is currently thirty years old and she plans to retire at age sixty. She is expected to live

to age eighty-five. Her labor income is $45,000 per year and she intends to maintain a

constant level of real consumption spending over the next fifty-five years. Assuming a real interest rate of 4% per year, no taxes, and no growth in real labor income, what is the value of Kecia’s human capital?

a)$31,797

b)$35,196

c)$778,141

d)$994,888

Answer: (c)