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UGBA 135 midterm EXAM (2 VERSIONS) 2026-2027
COMPLETE 500 QUESTIONS AND VERIFIED
SOLUTIONS LATEST UPDATE THIS YEAR
UGBA 135 midterm EXAM
QUESTION: Should most people save first for retirement or for their children's education?
A. Neither, Social Security will take care of most people's retirement needs and their children
will get scholarships.
B. Their children's education
C. Their retirement - ANSWER-C
QUESTION: Suppose you put $100 in a bank savings account that pays 7% annual interest (and
charges no annual fee). You keep that money in the account for two years (with no withdrawals
or additional deposits). How much money will you have at the end of two years?
A. $100
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B. $114
C. $107
D. Less than $100
E. More than $114 - ANSWER-E
QUESTION: A good strategy for saving for retirement is:
A. Wait until the end of the month and deposit any money you haven't spent in your retirement
savings account.
B. Set up automatic contributions to your retirement savings account. - ANSWER-B
QUESTION: Jamie and Joe are the same age, have the same job, and earn the same salary. Both
Jamie and Joe estimate that they will need $3 million to retire. At age 25, Jamie sets up
automatic contributions of 15% of his salary to his 401(k). Joe doesn't start contributing to his
401(k) until age 40. If Joe wants to retire at the same age as Jamie he will need to.
A. Save less each month than Jamie saves.
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B. Save the same each month that Jamie saves.
C. Save more each month than Jamie saves. - ANSWER-C
QUESTION: Strategies to save more include which of the following:
A. Increase your income.
B. Don't waste time comparison shopping.
C. Don't neglect the small stuff.
D. Focus on the big stuff
E. Automate savings
F. Buy on credit. - ANSWER-A, C, D, E
QUESTION: True or False: Thaler and Benartzi's "Save More Tomorrow" plan is to wait until
you've been at a job for at least six months and then sign up for the 401(k) plan - ANSWER-False
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QUESTION: True or False: It's best to not use a debit card for hotels or to rent cars because they
will probably put a hold on your account... - ANSWER-True
Q; Which of the following is a good use of a security fund (also called an emergency fund or a
rainy day fund)?
A. To purchase the latest model Android or iPhone
B. To go skiing on a weekend after a good snowstorm
C. To take the place of health insurance
D. To help you pay your bills if you lose your job - ANSWER-D
QUESTION: Which of the following should be a higher priority?
A. Paying off student debt as soon as possible
B. All three should have the same priority
C. Paying off your mortgage as soon as possible
UGBA 135 midterm EXAM (2 VERSIONS) 2026-2027
COMPLETE 500 QUESTIONS AND VERIFIED
SOLUTIONS LATEST UPDATE THIS YEAR
UGBA 135 midterm EXAM
QUESTION: Should most people save first for retirement or for their children's education?
A. Neither, Social Security will take care of most people's retirement needs and their children
will get scholarships.
B. Their children's education
C. Their retirement - ANSWER-C
QUESTION: Suppose you put $100 in a bank savings account that pays 7% annual interest (and
charges no annual fee). You keep that money in the account for two years (with no withdrawals
or additional deposits). How much money will you have at the end of two years?
A. $100
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B. $114
C. $107
D. Less than $100
E. More than $114 - ANSWER-E
QUESTION: A good strategy for saving for retirement is:
A. Wait until the end of the month and deposit any money you haven't spent in your retirement
savings account.
B. Set up automatic contributions to your retirement savings account. - ANSWER-B
QUESTION: Jamie and Joe are the same age, have the same job, and earn the same salary. Both
Jamie and Joe estimate that they will need $3 million to retire. At age 25, Jamie sets up
automatic contributions of 15% of his salary to his 401(k). Joe doesn't start contributing to his
401(k) until age 40. If Joe wants to retire at the same age as Jamie he will need to.
A. Save less each month than Jamie saves.
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B. Save the same each month that Jamie saves.
C. Save more each month than Jamie saves. - ANSWER-C
QUESTION: Strategies to save more include which of the following:
A. Increase your income.
B. Don't waste time comparison shopping.
C. Don't neglect the small stuff.
D. Focus on the big stuff
E. Automate savings
F. Buy on credit. - ANSWER-A, C, D, E
QUESTION: True or False: Thaler and Benartzi's "Save More Tomorrow" plan is to wait until
you've been at a job for at least six months and then sign up for the 401(k) plan - ANSWER-False
, Page 4 of 183
QUESTION: True or False: It's best to not use a debit card for hotels or to rent cars because they
will probably put a hold on your account... - ANSWER-True
Q; Which of the following is a good use of a security fund (also called an emergency fund or a
rainy day fund)?
A. To purchase the latest model Android or iPhone
B. To go skiing on a weekend after a good snowstorm
C. To take the place of health insurance
D. To help you pay your bills if you lose your job - ANSWER-D
QUESTION: Which of the following should be a higher priority?
A. Paying off student debt as soon as possible
B. All three should have the same priority
C. Paying off your mortgage as soon as possible
