GEB 3006 FINAL QUESTIONS AND ANSWERS
Employer benefits can be worth up to ___ of your base salary - Answer -50%
Generally the two main employer benefits with the highest value are: - Answer -
Retirement Health Plans
The health plans that offers the most choice in doctors and has the highest cost -
Answer -PPO
Which of the following health plans generally requires that you first see your primary
care physician and remain within a restricted network of doctors? - Answer -HMO
Employees without a pension plan should try to save at least _____ of their salary -
Answer -10-15%
Fidelity Investments recommends that individuals without pensions have about ___
times their salary at age 67 in order to have a sufficient amount of money to retire.` -
Answer -10
Fidelity Investments recommends that individuals without pensions have about ___
times their salary at age 30 in order to have a sufficient amount of money to retire. -
Answer -1
At what age will you become eligible for Medicare? - Answer -65
At what age are you eligible for early Social Security? - Answer -62 and the amount
received is a discounted benefit compared to the full retirement benefit
Which health plan has a low cost but high deductible? - Answer -HDHP
The rules for flexible spending accounts generally require that employees use the
money within - Answer -the current year or lose unused savings.
When you leave your job, you should always rollover your - Answer -401-K assets to a
self directed rollover IRA.
Between 1990 and 2010, the average US savings rate was around - Answer -5%
What two factors count for 65% of your FICO score? - Answer -Payment history and
outstanding debts
Which company has developed the MOST commonly used credit score to evaluate an
individual's credit? - Answer -Fair Isaac Corporation
, You should try to achieve a FICO score of at least - Answer -760
debt to credit limit ratio - Answer -total balance due / credit limit
canceling an old credit card with no balance due - Answer -could hurt your credit score
The treasury yield curve is normally - Answer -upward sloping, with long term rates
being higher than short term rates.
Having mortgage debt is generally considered better than - Answer -having credit card
debt.
It is legal for an employer to review your credit report as part of - Answer -the
application process.
In general, applying for and receiving new credit cards will tend to - Answer -decrease
your FICO score.
Assume that your parents have more liabilities than assets as a result of a $100,000 of
credit card debt. In the event of their death, the children will - Answer -NOT inherit the
credit card debt.
Interest rates on 30 year fixed rate mortgages tend to follow or correlate with: - Answer
-The 10 year treasury note rate
Interest rates paid by corporations and individual are normally derived from the current:
- Answer -The treasury yield curve
At a given interest rate, extending the term of your auto loan from 36 months to 60
months will: - Answer -Decrease your payment and increase the amount of interest
paid over the loan
If we experience inflation, the Federal Reserve would likely ________ interest rates. -
Answer -increase
Which is NOT a major credit monitoring company? - Answer -Transpacific
A flat or inverted yield curve - Answer -often signals a recession.
You should never shop for a car based on a budgeted payment, - Answer -but instead
look at the overall cost of the vehicle.
Retailers commonly offer new items at significantly higher prices, - Answer -then plan
to market the goods down later to ultimately achieve the desired gross margin goal.
Employer benefits can be worth up to ___ of your base salary - Answer -50%
Generally the two main employer benefits with the highest value are: - Answer -
Retirement Health Plans
The health plans that offers the most choice in doctors and has the highest cost -
Answer -PPO
Which of the following health plans generally requires that you first see your primary
care physician and remain within a restricted network of doctors? - Answer -HMO
Employees without a pension plan should try to save at least _____ of their salary -
Answer -10-15%
Fidelity Investments recommends that individuals without pensions have about ___
times their salary at age 67 in order to have a sufficient amount of money to retire.` -
Answer -10
Fidelity Investments recommends that individuals without pensions have about ___
times their salary at age 30 in order to have a sufficient amount of money to retire. -
Answer -1
At what age will you become eligible for Medicare? - Answer -65
At what age are you eligible for early Social Security? - Answer -62 and the amount
received is a discounted benefit compared to the full retirement benefit
Which health plan has a low cost but high deductible? - Answer -HDHP
The rules for flexible spending accounts generally require that employees use the
money within - Answer -the current year or lose unused savings.
When you leave your job, you should always rollover your - Answer -401-K assets to a
self directed rollover IRA.
Between 1990 and 2010, the average US savings rate was around - Answer -5%
What two factors count for 65% of your FICO score? - Answer -Payment history and
outstanding debts
Which company has developed the MOST commonly used credit score to evaluate an
individual's credit? - Answer -Fair Isaac Corporation
, You should try to achieve a FICO score of at least - Answer -760
debt to credit limit ratio - Answer -total balance due / credit limit
canceling an old credit card with no balance due - Answer -could hurt your credit score
The treasury yield curve is normally - Answer -upward sloping, with long term rates
being higher than short term rates.
Having mortgage debt is generally considered better than - Answer -having credit card
debt.
It is legal for an employer to review your credit report as part of - Answer -the
application process.
In general, applying for and receiving new credit cards will tend to - Answer -decrease
your FICO score.
Assume that your parents have more liabilities than assets as a result of a $100,000 of
credit card debt. In the event of their death, the children will - Answer -NOT inherit the
credit card debt.
Interest rates on 30 year fixed rate mortgages tend to follow or correlate with: - Answer
-The 10 year treasury note rate
Interest rates paid by corporations and individual are normally derived from the current:
- Answer -The treasury yield curve
At a given interest rate, extending the term of your auto loan from 36 months to 60
months will: - Answer -Decrease your payment and increase the amount of interest
paid over the loan
If we experience inflation, the Federal Reserve would likely ________ interest rates. -
Answer -increase
Which is NOT a major credit monitoring company? - Answer -Transpacific
A flat or inverted yield curve - Answer -often signals a recession.
You should never shop for a car based on a budgeted payment, - Answer -but instead
look at the overall cost of the vehicle.
Retailers commonly offer new items at significantly higher prices, - Answer -then plan
to market the goods down later to ultimately achieve the desired gross margin goal.
