UGBA 135 EXAM QUESTIONS AND
ANSWERS. VERIFIED 2025/2026.
What is more valuable:
$1000 today
or
$1000 a year from now?
$1000 today
$1000 tomorrow
They are the same - ANS $1000 today
Compound interest is interest paid on the principal and not on accrued interest.
True
False - ANS False
If you deposit $100 in a savings account that pays 10% annual interest how much money will
you have in the account after two years? (Assume that this is the only money deposited in the
account, that you do not make withdrawals, and that the bank pays interest annually.)
$100
$121
$220
$120
$110 - ANS 121
1 @COPYRIGHT 2025/2026 ALLRIGHTS RESERVED.
, If the annual interest rate is 10%, what is the present value of receiving $110 one year from
now? (Do not include the "$" sign in your answer.) - ANS 100
Which of the following are the two most common chapters (types) for personal bankruptcy?
(choose two)
Chapter 13
Chapter 7
Chapter 17
Chapter 3
Chapter 3 - ANS Chapter 13
Chapter 7
In bankruptcy, what is a "discharge"?
A discharge is a temporary stop to all collection activity.
A discharge is the liquidation of collateral backing a secured debt.
A discharge is a release from personal liability on debt.
A discharge is loan that is backed by some form of collateral. - ANS A discharge is a release
from personal liability on debt.
One highly recommended method for paying off student loans is to take an early withdrawal
from your traditional IRA or 401(k) plan.
True
False - ANS False
Since student loans and taxes are not tied to collateral, these debts can be erased through
bankruptcy.
True
False - ANS False
2 @COPYRIGHT 2025/2026 ALLRIGHTS RESERVED.
ANSWERS. VERIFIED 2025/2026.
What is more valuable:
$1000 today
or
$1000 a year from now?
$1000 today
$1000 tomorrow
They are the same - ANS $1000 today
Compound interest is interest paid on the principal and not on accrued interest.
True
False - ANS False
If you deposit $100 in a savings account that pays 10% annual interest how much money will
you have in the account after two years? (Assume that this is the only money deposited in the
account, that you do not make withdrawals, and that the bank pays interest annually.)
$100
$121
$220
$120
$110 - ANS 121
1 @COPYRIGHT 2025/2026 ALLRIGHTS RESERVED.
, If the annual interest rate is 10%, what is the present value of receiving $110 one year from
now? (Do not include the "$" sign in your answer.) - ANS 100
Which of the following are the two most common chapters (types) for personal bankruptcy?
(choose two)
Chapter 13
Chapter 7
Chapter 17
Chapter 3
Chapter 3 - ANS Chapter 13
Chapter 7
In bankruptcy, what is a "discharge"?
A discharge is a temporary stop to all collection activity.
A discharge is the liquidation of collateral backing a secured debt.
A discharge is a release from personal liability on debt.
A discharge is loan that is backed by some form of collateral. - ANS A discharge is a release
from personal liability on debt.
One highly recommended method for paying off student loans is to take an early withdrawal
from your traditional IRA or 401(k) plan.
True
False - ANS False
Since student loans and taxes are not tied to collateral, these debts can be erased through
bankruptcy.
True
False - ANS False
2 @COPYRIGHT 2025/2026 ALLRIGHTS RESERVED.
