UGBA 135 Final Study Set
According to the Census Bureau, what % most closely represents the number
of children born out of wedlock? - -40
- In terms of annual income, to be in the top 1% of households, annual
earnings should exceed about - -400,000
- Of all of the money the government spends, approximately what % is
spent on senior citizens? - -40%
- According to the IRS, what percentage of households have a net worth of
at least $1 million? - -4.90%
- We define wealth as - -Lifestyle
- The burden of saving and investing for retirement and health care is
shifting more and more from the - -Employer to employee
- With a deferred interest plan, if you are late in your payments - -You may
be charged interest in the entire balance
- To be in the top 10% of households, annual earnings should exceed about -
-$113,000
- The cornerstone of wealth is - -Being frugal
- Approximately what percentage of millionaires are self employed or own a
business? - -50
- Which of the following is not a method of identity theft - -Your credit card
statement has a charge on it you do not recognize.
- The biggest financial challenge facing future generations is: - -More elderly
to be supported by fewer workers.
Huge federal debts to be repaid.
Large numbers of under-educated and unemployed workers to be supported.
- To become a millionaire ("financially independent") in today's dollars, it is
required for a household to have annual income of at least: - -None of the
above.
- Bankruptcies are: - -Handled in federal court.
Will not relieve you of alimony or child support
,Will appear on your credit report.
- If you carry a credit card balance: - -The interest rates for purchases, cash
advances, and convenience checks may be different.
- Part B of Medicare is: - -Optional.
Partially funded by a 3.8% surtax
Means tested
- What are the three kinds of interest rates? - -Go to, variable, fixed
- When a lender is willing to loan money without requiring any collateral, the
loan is considered: - -Unsecured.
- Revolving credit is when you can: - -Re-use your credit line over and over.
- A credit card fee may be charged for: - -Late payment
- Interest in a credit card account is normally calculated: - -Daily
- The legal limit on interest applied to unpaid credit card balances is: - -No
limit
- Which of the following is not subject to a credit card fee? - -Early payment
- A credit card "hold" is limited to - -An arbitrary amount
- Debt has which of the following characteristics? - -Debt comes with
interest
The state of owing something such as money
Debt must be repaid
- To avoid a late payment fee, if paying by mail the payment must be - -
Received by the due date.
- Avoid the following credit card mistake. - -Withdrawal cash from an ATM
- Fees for inactivity, loading money, monthly maintenance and checking
your balance are common to - -Pre-paid cards
- Which of the following is not a prepaid card fee? - -Annual fee
- The fee charged by the new provider when you transfer the balance from
one credit card to another is called a - -Balance Transfer Fee
- Which of the following is not a good use of debt? - -Vacation
, - When a new credit card account is opened, there can be no interest rate
increase for 12 months unless: - -You are on a variable interest rate tied to
an index.
An introductory rate has expired.
You are more than 60 days late with a payment.
- If the credit card issuer notifies you of a significant change in terms, and
you do not want to accept them, your options include: - -Double the
percentage of your minimum payment.
Close the account by paying off the balance.
Increase the monthly payments so the balance will be paid in five years.
- Which of the following best describes a "judgment" arrived at in a court of
law? - -It is probably reflected in your credit report
It states how much creditors are owed
It becomes a public record
- What are the three major credit reporting agencies? - -Equifax
Transunion
Experian
- Which of the following is not part of the formula used by FICO in calculating
your credit score? - -Number of bank savings accounts
- The most common error found in credit reports is: - -It's not your report.
Charges mistakenly reported.
Social Security number is in error.
- What is included in your credit report? - -Your student loan payments
Your employment history
DUIs
- The range of a subprime FICO score is about - -620-660
- One way to increase your credit score is to: - -Take out a new credit card
and stop charging.
- For the best credit score, which of the following is recommended? - -Keep
your debt to credit ratio to 30% or less
Pay at least the minimum balance on all cards
Pay your bills on time over time
- Identity theft can be done - -By theft of a wallet or purse
By email or phone
By hacking
According to the Census Bureau, what % most closely represents the number
of children born out of wedlock? - -40
- In terms of annual income, to be in the top 1% of households, annual
earnings should exceed about - -400,000
- Of all of the money the government spends, approximately what % is
spent on senior citizens? - -40%
- According to the IRS, what percentage of households have a net worth of
at least $1 million? - -4.90%
- We define wealth as - -Lifestyle
- The burden of saving and investing for retirement and health care is
shifting more and more from the - -Employer to employee
- With a deferred interest plan, if you are late in your payments - -You may
be charged interest in the entire balance
- To be in the top 10% of households, annual earnings should exceed about -
-$113,000
- The cornerstone of wealth is - -Being frugal
- Approximately what percentage of millionaires are self employed or own a
business? - -50
- Which of the following is not a method of identity theft - -Your credit card
statement has a charge on it you do not recognize.
- The biggest financial challenge facing future generations is: - -More elderly
to be supported by fewer workers.
Huge federal debts to be repaid.
Large numbers of under-educated and unemployed workers to be supported.
- To become a millionaire ("financially independent") in today's dollars, it is
required for a household to have annual income of at least: - -None of the
above.
- Bankruptcies are: - -Handled in federal court.
Will not relieve you of alimony or child support
,Will appear on your credit report.
- If you carry a credit card balance: - -The interest rates for purchases, cash
advances, and convenience checks may be different.
- Part B of Medicare is: - -Optional.
Partially funded by a 3.8% surtax
Means tested
- What are the three kinds of interest rates? - -Go to, variable, fixed
- When a lender is willing to loan money without requiring any collateral, the
loan is considered: - -Unsecured.
- Revolving credit is when you can: - -Re-use your credit line over and over.
- A credit card fee may be charged for: - -Late payment
- Interest in a credit card account is normally calculated: - -Daily
- The legal limit on interest applied to unpaid credit card balances is: - -No
limit
- Which of the following is not subject to a credit card fee? - -Early payment
- A credit card "hold" is limited to - -An arbitrary amount
- Debt has which of the following characteristics? - -Debt comes with
interest
The state of owing something such as money
Debt must be repaid
- To avoid a late payment fee, if paying by mail the payment must be - -
Received by the due date.
- Avoid the following credit card mistake. - -Withdrawal cash from an ATM
- Fees for inactivity, loading money, monthly maintenance and checking
your balance are common to - -Pre-paid cards
- Which of the following is not a prepaid card fee? - -Annual fee
- The fee charged by the new provider when you transfer the balance from
one credit card to another is called a - -Balance Transfer Fee
- Which of the following is not a good use of debt? - -Vacation
, - When a new credit card account is opened, there can be no interest rate
increase for 12 months unless: - -You are on a variable interest rate tied to
an index.
An introductory rate has expired.
You are more than 60 days late with a payment.
- If the credit card issuer notifies you of a significant change in terms, and
you do not want to accept them, your options include: - -Double the
percentage of your minimum payment.
Close the account by paying off the balance.
Increase the monthly payments so the balance will be paid in five years.
- Which of the following best describes a "judgment" arrived at in a court of
law? - -It is probably reflected in your credit report
It states how much creditors are owed
It becomes a public record
- What are the three major credit reporting agencies? - -Equifax
Transunion
Experian
- Which of the following is not part of the formula used by FICO in calculating
your credit score? - -Number of bank savings accounts
- The most common error found in credit reports is: - -It's not your report.
Charges mistakenly reported.
Social Security number is in error.
- What is included in your credit report? - -Your student loan payments
Your employment history
DUIs
- The range of a subprime FICO score is about - -620-660
- One way to increase your credit score is to: - -Take out a new credit card
and stop charging.
- For the best credit score, which of the following is recommended? - -Keep
your debt to credit ratio to 30% or less
Pay at least the minimum balance on all cards
Pay your bills on time over time
- Identity theft can be done - -By theft of a wallet or purse
By email or phone
By hacking
