University of Central Florida GEB 3006
GEB 3006 EXAM 3 Financial Literacy Practice
Questions Answers and Solutions
College Business Course Study Resource
Terms in this set (157)
What two factors count for 65% of your c) Payment history and outstanding debts
FICO score?
a) Income and payment history
b) Employment history
and outstanding debts
c) Payment history and
outstanding debts
d) Income and outstanding debts
,Which company has developed c) Fair Isaac Corporation
the MOST commonly used credit
score to evaluate an individual's
credit?
a) Experian
b)Transunion
c) Fair Isaac Corporation
d) Equifax
You should try to achieve a FICO score c) 760
of at least_____in order to receive
a
top credit rating.
a) 840
b) 640
c) 760
d) 940
What is the debt to credit limit ratio b) 70%, and decreasing this ratio will help the
for the following individual? credit score
Visa CardMaster CardCredit
Limit$10,000$20,000Balance
Due$2,000$19,000Available
Credit$8,000$1,000
a) 30%, and decreasing this ratio will
help the credit score
b) 70%, and decreasing this ratio will
help the credit score
c) 70%, and increasing this ratio will
help the credit score
d) 30%, and increasing this ratio will
help the credit score.
,True or False? True
It is possible that canceling an old
credit card with no balance due
could hurt your credit score.
True or False? True
If an individual gets several quotes on
a new mortgage within a two week
period, it should not immediately
impact their credit score. The
credit score may later be impacted
by the size of the mortgage and
related
monthly payments.
A married couple is applying for a b) Apply in the name of the spouse with the
mortgage. One spouse has a low FICO highest score.
score and one has a high FICO
score. What is their best strategy for
getting the lowest interest rate
possible?
a)Apply in both spouses names since
the banks will use the higher score in
evaluating the mortgage application.
b) Apply in the name of the spouse
with the highest score.
, Which of the following statements is b) The treasury yield curve is normally upward
true? sloping, with long term rates being higher than short
term rates.
a)You Answered The treasury
yield curve is normally downward
sloping,
with long term rates being higher
than short term rates.
b)The treasury yield curve is normally
upward sloping, with long term
rates being higher than short term
rates.
c) The treasury yield curve is normally
downward sloping, with short term
rates being higher than long term
rates.
d) The treasury yield curve is normally
upward sloping, with short term rates
being higher than long term rates.
True or False? True
Having mortgage debt is generally
considered better than having credit
card debt.
True or False? False
It is illegal for an employer to review
your credit report as part of the
application process.
GEB 3006 EXAM 3 Financial Literacy Practice
Questions Answers and Solutions
College Business Course Study Resource
Terms in this set (157)
What two factors count for 65% of your c) Payment history and outstanding debts
FICO score?
a) Income and payment history
b) Employment history
and outstanding debts
c) Payment history and
outstanding debts
d) Income and outstanding debts
,Which company has developed c) Fair Isaac Corporation
the MOST commonly used credit
score to evaluate an individual's
credit?
a) Experian
b)Transunion
c) Fair Isaac Corporation
d) Equifax
You should try to achieve a FICO score c) 760
of at least_____in order to receive
a
top credit rating.
a) 840
b) 640
c) 760
d) 940
What is the debt to credit limit ratio b) 70%, and decreasing this ratio will help the
for the following individual? credit score
Visa CardMaster CardCredit
Limit$10,000$20,000Balance
Due$2,000$19,000Available
Credit$8,000$1,000
a) 30%, and decreasing this ratio will
help the credit score
b) 70%, and decreasing this ratio will
help the credit score
c) 70%, and increasing this ratio will
help the credit score
d) 30%, and increasing this ratio will
help the credit score.
,True or False? True
It is possible that canceling an old
credit card with no balance due
could hurt your credit score.
True or False? True
If an individual gets several quotes on
a new mortgage within a two week
period, it should not immediately
impact their credit score. The
credit score may later be impacted
by the size of the mortgage and
related
monthly payments.
A married couple is applying for a b) Apply in the name of the spouse with the
mortgage. One spouse has a low FICO highest score.
score and one has a high FICO
score. What is their best strategy for
getting the lowest interest rate
possible?
a)Apply in both spouses names since
the banks will use the higher score in
evaluating the mortgage application.
b) Apply in the name of the spouse
with the highest score.
, Which of the following statements is b) The treasury yield curve is normally upward
true? sloping, with long term rates being higher than short
term rates.
a)You Answered The treasury
yield curve is normally downward
sloping,
with long term rates being higher
than short term rates.
b)The treasury yield curve is normally
upward sloping, with long term
rates being higher than short term
rates.
c) The treasury yield curve is normally
downward sloping, with short term
rates being higher than long term
rates.
d) The treasury yield curve is normally
upward sloping, with short term rates
being higher than long term rates.
True or False? True
Having mortgage debt is generally
considered better than having credit
card debt.
True or False? False
It is illegal for an employer to review
your credit report as part of the
application process.
