Questions from Personal Finance


Q: Distinguish between a managed mutual fund and an unmanaged mutual fund.

Distinguish between a managed mutual fund and an unmanaged mutual fund.

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Q: Distinguish among mutual funds with an income objective, growth objective,

Distinguish among mutual funds with an income objective, growth objective, and growth and income objective.

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Q: Explain why investors like index mutual funds and exchange traded funds.

Explain why investors like index mutual funds and exchange traded funds.

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Q: Summarize how depreciation is used to reduce the taxable income from a

Summarize how depreciation is used to reduce the taxable income from a real estate investment.

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Q: Briefly explain how the interest paid on the mortgage of a real

Briefly explain how the interest paid on the mortgage of a real estate investment reduces one’s income taxes.

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Q: Summarize the special income tax regulations on renting out vacation homes.

Summarize the special income tax regulations on renting out vacation homes.

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Q: List the steps in the process of estimating your retirement savings goal

List the steps in the process of estimating your retirement savings goal in today’s dollars.

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Q: In the text example, what can Erik do to save more

In the text example, what can Erik do to save more for his retirement?

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Q: What is a sales finance company and how does it work?

What is a sales finance company and how does it work?

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Q: Identify topics that you would cover in your letter of last instructions

Identify topics that you would cover in your letter of last instructions.

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