UGBA 135 Final Exam Questions With Correct Answers 2023 (Gradec 100%)

UGBA 135 Final Exam Questions With Correct Answers 2023 (Gradec 100%) Most important aspect of a credit score is paying on time all the time 12. Names of 3 main credit agencies: Experian, Equifax, TransUnion 13. Variable vs. go-to rate of interest a. Variable: interest rate that moves up and down based upon a benchmark not controlled by the lender b. Go-to: interest rate charged on unpaid credit card balances in addition to the variable rate, determines total interest rate 14. What is a late penalty for? Fee for not making a minimum payment on time 15. If you’re the victim of credit card theft, what’s the first thing you should do? Contact all 3 credit bureaus 16. Paragraphs in the book on prepaid cards a. Offered by banks and nonbanks, a way to provide those without bank accounts with a secure line of credit b. High activation fees (up to $39.95) c. Inactivity fees d. Fees to load money onto the card 17. Minimum criteria to generate a credit report/score: a. At least 6 months of history including: i. 1 reported account that has been open for at least 6 months ii. 1 account that has been reported by a lender in the last 6 months iii. Nothing that indicates you’re deceased 18. Legal limit on interest on credit card balances: NONE 19. You have to change your credit report to change your credit score a. If you fall behind more than 60 days on student loans it will be on your credit report 20. Credit card act - apply only to consumer credit cards, not business credit cards a. No interest increases for the first year unless an introductory rate has come to an end, you are more than 60 days late on a payment, or you are on a variable interest rate tied to an index b. Card holder must be notified 45 days in advance of any interest rate change c. Issuer may charge a default rate (28%-35%) if you are more than 60 days late on a payment, but if you’re on time for the next 6 months, they have to restore your original rate d. Interest rate increases can only be applied to new charges for an account in good standing e. Promotional interest rate periods must last at least 6 months f. Overdraft fees cannot be charged unless the cardholder agrees to allow them 21. Who pays for social security? Employers and workers 22. 3 parts of medicare - who pays for part a, b, and d? a. A: financed by a 2.9% payroll tax on all earned income paid by all workers with no salary cap (1.45% by employer, 1.45% by employee) b. B: financed by monthly premiums paid by the insured, range from $134-$428/month, paid directly or deducted from social security checks c. D: financed 25% by monthly premiums from the insured and 75% by taxes optional/means tested, prescription drug plan provided only by private insurance companies d. 2 (B/D) are means-tested: the amount you pay depends on your income level, but everyone gets the same coverage 23. Who’s eligible to collect social security and medicare?