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WMCP QUESTIONS WITH COMPLETE ANSWERS GRADED A+
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WMCP QUESTIONS WITH COMPLETE ANSWERS GRADED A+
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WMCP QUESTIONS WITH COMPLETEANSWERS GRADED
marginal ggutility gg- ggAnswerThe ggamount ggof ggadditional ggsatisfaction ggthat ggis
ggreceived ggby ggan ggincrease ggin ggconsumption. ggSatisfaction ggderived ggfrom
ggCONSUMING gggoods ggor ggservices
Life gginsurance gg- ggAnswerprovides gga ggpayout ggthat ggmeets ggthe ggbequest/legacy
gggoal ggeven ggif ggthe ggindividual ggdies ggbefore gghe ggor ggshe ggsaves ggenough ggto
ggfund gga ggbequest/legacy
unexpected gginheritance gg- ggAnswerlike ggpension ggincome, ggthis ggincrease
ggpermanent ggincome ggand ggreduce ggthe ggsavings ggneeded ggbefore ggretirement
market ggrisk ggto ggthe ggvalue ggof gghuman ggcapital gg- ggAnswerworking ggin ggan
ggoccupation ggwhose ggprofits ggare ggclosely ggtied ggto gginterest ggrates
Coverdell ggEducation ggSavings ggAccount gg- ggAnsweran ggeducation ggsavings ggfun
ggthat ggis ggsubject ggto ggadjusted gggross ggincome gg(AGI)
529 ggCollege ggSavings ggPlan gg- ggAnswerNo ggAGI ggrestrictions ggso ggutilized ggby
gghigh ggincome ggindividuals ggfor ggcollege ggsavings
Traditional ggIRA gg- ggAnswerAn ggIRA ggfor ggwhich ggyou ggcan ggdeduct ggyour
ggcontribution ggeach ggyear ggfrom ggyour ggtaxable ggincome
Average ggrate ggof ggtaxation gg- ggAnswerthe ggpercentage ggof ggfederal ggincome ggtaxes
ggowed ggdivided ggby ggtaxable ggincome
appreciated ggproperty gg- ggAnswershould ggbe ggdistributed ggthrough ggan ggestate
ggrather ggthan gggifted
Step-up ggbasis ggat ggdeath gg- ggAnswerassets ggtransferred ggat ggdeath ggget gga ggnew
ggbasis, ggtax ggfree
Federal ggGift ggTax gg- ggAnswerFederal ggtax ggimposed ggon ggthe ggtransfer ggof
ggsecurities, ggproperty ggor ggother ggassets. ggThe ggDONOR ggmust ggpay ggthe ggtax
ggbased ggon ggthe ggfair ggmarket ggvalue ggof ggthe ggtransferred ggassets. ggHowever,
ggfederal gglaw ggallows ggdonors ggto gggive ggup ggto gg$12,000 ggper ggyear ggto ggany
ggindividual ggwithout ggincurring gggift ggtax ggliability. ggSo, gga gghusband ggand ggwife
, ggmay gggive gg$24,000 ggto ggtheir ggchild ggin ggone ggyear ggwithout ggtax ggif ggeach
ggparent gggives gg$12,000.
Federal ggEstate ggTax gg- ggAnswerA ggtax ggimposed ggon ggthe ggtransfer ggof ggproperty
ggat ggdeath. ggAssessed ggon ggthe ggFMV ggof ggthe ggproperty ggat ggthe ggdate ggof ggdeath
ggaka ggalternate ggvaluation ggdate
Charitable gggifts gg- ggAnswerGifts ggto ggqualified ggorganizations
Cash ggor ggproperty
Allows ggdonor ggto ggtake ggan ggincome ggtax ggdeduction
Shadow ggAccount gg- ggAnsweruniversal gglife ggpolicy ggwith gga ggsecondary ggguarantee
ggwill ggremain ggin ggforce ggeven ggif ggthe ggaccount ggvalue ggis ggless ggthan ggzero
permanent gglife gginsurance gg- ggAnswerinsurance ggthat gggives gga ggperson ggprotection
ggfor gghis ggor ggher ggentire gglifetime ggand ggtax ggbenefits
Term ggInsurance gg- ggAnswerlife gginsurance ggprotection ggfor gga ggspecified ggperiod ggof
ggtime; ggsometimes ggcalled ggtemporary gglife gginsurance
Term gginsurance ggis ggappropriate ggwhen: gg- ggAnswer1. ggThe ggamount ggof ggincome
ggthat ggcan ggbe ggspent ggon gglife gginsurance ggis gglimited
2. ggThe ggneed ggfor ggprotection ggis ggtemporary
3. ggThe gginsured ggwants ggto ggguarantee ggfuture gginsurability
lifetime ggincome ggannuity gg- ggAnswercan ggbe ggviewed ggas gga ggtype ggof ggcoupon
ggbond ggwhich ggprovides ggpayments ggfor ggan gguncertain gglength ggof ggtime, ggand
ggwhich ggdoes ggnot ggrepay ggthe ggprincipal ggvalue ggupon ggdeath. ggMuch gglike gga
ggdefined-benefit ggpension ggplan, ggincome ggannuities ggprovide ggvalue ggto ggtheir
ggowners ggby ggpooling ggrisks ggacross gga gglarge ggbase ggof ggparticipants.
annual ggpoint-to-point ggmethod ggcredited gginterest ggrate gg- ggAnswerthe ggending
ggindex ggdivided ggby ggthe ggindex ggvalue ggat ggthe ggbeginning ggof ggthe ggyear ggminus
ggone
umbrella ggpolicy gg- ggAnswerInsurance ggthat ggprovides ggadditional ggliability
ggprotection ggbeyond ggthat ggin ggan ggautomobile ggor gghomeowner's ggpolicy.
UIT gg- ggAnswerhas gga ggtermination ggdate
Tobin's ggQ ggratio gg- ggAnswermeasures ggvaluation ggas gga ggratio ggof ggmarket
ggcapitalization ggto ggbalance ggsheet
element ggof ggthe ggbargain gg- ggAnswer$ ggmade ggfrom ggexercising ggstock ggfrom ggan
ggincentive ggstock ggoption. ggNot ggincluded ggin gggross ggincome ggbut ggAMT
ggpreference ggitem
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