Financial Literacy GEB Exam
questions and verified answers
Goals - correct answer ✔✔ Revenues is greater than expenses
Before you spend and borrow - correct answer ✔✔ -Learn to save and budget your money
-Keep 3 months pay for emergencies
-Target 10-15% of your income
-Download a budget app
No Savings + Crisis = - correct answer ✔✔ Food Bank
How long is the time horizon investing for students? - correct answer ✔✔ 45 Years Investment
Horizon
Why is consumer credit important? - correct answer ✔✔ -Individuals will borrow throughout
their lifetime
-Maintaining a good credit rating will allow you to borrow when you need to AND lower the cost
of borrowing via a lower interest rate
Credit Reports - correct answer ✔✔ Fair and Accurate Reporting Act allows for free credit
reports once a year, Log on to annual creditreport.com
or call.
Do employers check applicants credit reports? - correct answer ✔✔ Most Employers do and
applications require you to release the data
, Improve your FICO Score - correct answer ✔✔ -Pay your bills on time
-Manage your debt-to-credit limit ratio
-The lower the ratio the better; target 30%
Improving your FICO Score - correct answer ✔✔ -Protect your credit history (15%)
The longer the history the better
Be careful about canceling old unused credit cards
- correct answer ✔✔ -Having the right credit mix (20%)
-Mortgage debt: good
-Installment debt (auto): good
Lots of new credit cards: bad
What is one of the illogical ways to improve your credit score? - correct answer ✔✔ By
borrowing money from lenders
Credit Questions/Issues - correct answer ✔✔ What if I don't have a FICO score?
Get a credit card with a small limit, pay it off monthly or piggyback on your parent's cards
Will getting several bank quotes on a mortgage reduce my score? - correct answer ✔✔ No,
there is a typically a two week window where people will look at your credit.
Do you have to pay interest on a credit card to rise your score? - correct answer ✔✔ No, it's the
debt to available credit ratio that is important.
Avoid Credit Card Debt! - correct answer ✔✔ High Interest Rates
questions and verified answers
Goals - correct answer ✔✔ Revenues is greater than expenses
Before you spend and borrow - correct answer ✔✔ -Learn to save and budget your money
-Keep 3 months pay for emergencies
-Target 10-15% of your income
-Download a budget app
No Savings + Crisis = - correct answer ✔✔ Food Bank
How long is the time horizon investing for students? - correct answer ✔✔ 45 Years Investment
Horizon
Why is consumer credit important? - correct answer ✔✔ -Individuals will borrow throughout
their lifetime
-Maintaining a good credit rating will allow you to borrow when you need to AND lower the cost
of borrowing via a lower interest rate
Credit Reports - correct answer ✔✔ Fair and Accurate Reporting Act allows for free credit
reports once a year, Log on to annual creditreport.com
or call.
Do employers check applicants credit reports? - correct answer ✔✔ Most Employers do and
applications require you to release the data
, Improve your FICO Score - correct answer ✔✔ -Pay your bills on time
-Manage your debt-to-credit limit ratio
-The lower the ratio the better; target 30%
Improving your FICO Score - correct answer ✔✔ -Protect your credit history (15%)
The longer the history the better
Be careful about canceling old unused credit cards
- correct answer ✔✔ -Having the right credit mix (20%)
-Mortgage debt: good
-Installment debt (auto): good
Lots of new credit cards: bad
What is one of the illogical ways to improve your credit score? - correct answer ✔✔ By
borrowing money from lenders
Credit Questions/Issues - correct answer ✔✔ What if I don't have a FICO score?
Get a credit card with a small limit, pay it off monthly or piggyback on your parent's cards
Will getting several bank quotes on a mortgage reduce my score? - correct answer ✔✔ No,
there is a typically a two week window where people will look at your credit.
Do you have to pay interest on a credit card to rise your score? - correct answer ✔✔ No, it's the
debt to available credit ratio that is important.
Avoid Credit Card Debt! - correct answer ✔✔ High Interest Rates
