UGBA135 EXAM QUESTIONS AND
ANSWERS. VERIFIED 2025/2026.
The burden of saving and investing for retirement and healthcare is shifting more and more
from the - ANS (*)Employer to employee;Individual to the government;Employee to
employer;Government to the employee
Social Security is a - ANS ;A privately insured pension plan;None of the above(*)Pay-as-you-
go plan;Federal pension plan
It is estimated that seniors take out in Social Security and Medicare benefits an amount equal to
- ANS ;Less than they paid in;Two times what they paid in(*)Six times what they paid in;Four
times what they paid in
If the credit card issuer notifies you of a significant change in terms, and you do not want to
accept them, your options include: - ANS (*)Any of the above.;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.
Social Security benefits are available for - ANS ;Widows and widowers;Orphans(*)All of the
above;Spouses
Which of the following is true? - ANS Your credit score is the most important part of your
credit report.;Credit card issuers may solicit students on or near campus.;Todays public
computers are secure , and will protect your personal information.;(*)A reward poster for
finding a lost dog is a unilateral contract.
1 @COPYRIGHT 2025/2026 ALLRIGHTS RESERVED.
,This question has been dropped from the assignment. Please answer "Yes" to get one point. -
ANS (*)Yes;no
Debt has which of the following characteristics? - ANS ;Debt must be repaid;The state of
owing something such as money(*)All the above;Debt comes with interest
Video: Which of the following are not allowed to check credit reports? - ANS (*)None of the
above;Landlords;Insurance companies;Employers
A credit card "hold" is limited to - ANS ;Two times the expected charge(*)An arbitrary
amount;$500;$200
If you carry a credit card balance: - ANS ;You cannot be charged an overpayment fee.(*)The
interest rates for purchases, cash advances, and convenience checks may be different.;The same
interest rate must be charged for purchases, cash advances, and convenience checks.;None of
the above.
Which of the following statements about Social Security is true? - ANS ;Social Security
benefits are exempt from federal taxes.;Reduced benefits for early retirement are available at
age 55.;Social Security still collects more that it pays out.(*)None of the above.
Which of the following is important when signing a contract? - ANS ;What constitutes the
end of the contract?;What is the reputation of the other parties?;Is mediation or arbitration
required?(*)All of the above
Which of the following is not "consideration" when creating a contract? - ANS ;Physical
objects.(*)Gender.;Money.;Services.
Avoid the following credit card mistake. - ANS ;Using it to purchase a song on iTunes.;Using it
to pay for a hotel room.(*)Using it to withdraw cash from an ATM.;Using it to rent a car.
2 @COPYRIGHT 2025/2026 ALLRIGHTS RESERVED.
,With a deferred interest plan, if you are late in your payments - ANS ;None of the above;The
outstanding balance is immediately due(*)You may be charged interest on the entire balance
retroactively;You must return the merchandise
A credit card fee may be charged for: - ANS ;Double cycle billing.(*)Late payment;Having a
grace period.;Universal default.
To avoid a late payment fee, if paying by mail the payment must be - ANS (*)Received by the
due date;Mailed by the due date;Postmarked by the due date;None of the above
We define "wealth" as - ANS (*)Lifestyle;10 times the poverty level;Net worth in excess of
$1,000,000;Annual income over $100,000
When a lender is willing to loan money without requiring any collateral, the loan is considered: -
ANS ;Too risky to make the loan.;None of the above.;Secured(*)Unsecured
Seniors are eligible for Medicare at age - ANS ;70 ½;59(*)65;62
The legal limit on interest applied to unpaid credit card balances is: - ANS (*)There is no
limit;35%;37%;28%
The best way to establish credit is to - ANS ;Pay cash for everything(*)None of the
above;Write checks for everything and keep accurate records;Not borrow money
In terms of annual income, to be in the top 1% of households, annual earnings should exceed
about: - ANS ;$160,000;$113,000;$250,000(*)$400,000
Which of the following is the best place to use a credit card? - ANS ;Tire re-tread shops.;Pawn
shops.(*)Super market.;Bars.
3 @COPYRIGHT 2025/2026 ALLRIGHTS RESERVED.
, Video: Advice varies on which debt to pay off first. Which of the following is not a
recommended choice? - ANS ;The debt that bothers you most;The smallest debt(*)The debt
with the lowest interest rate;The debt with the highest interest rate
Revolving credit is when you can: - ANS (*)Re-use your credit line over and over.;Close out
the account by paying a balance transfer fee.;Turn short-term credit into an installment
loan.;Increase your credit limit by 100%.
Which of the following is not a good use of debt? - ANS ;An affordable car loan.;Investing in a
well thought out business.(*)Borrowing money for a vacation.;An affordable home loan.
Fees for inactivity, loading money, monthly maintenance and checking your balance are
common to - ANS ;Debit Cards;Credit Cards;None of the above(*)Prepaid cards
To become a millionaire ("financially independent") in today's dollars, it is required for a
household to have annual income of at least: - ANS ;$400,000(*)None of the
above.;$200,000;$250,000
Video: The median credit score is: - ANS ;512;612(*)712;412
Identity theft can be done - ANS ;By theft of a wallet or purse(*)All the above;By email or
phone;By hacking
The most common error found in credit reports is: - ANS ;Social Security number is in
error.;Charges mistakenly reported.;It's not your report.(*)All the above.
To be in the top 10% of households, annual earnings should exceed about -
ANS (*)$113,000;$68,000;$160,000;$240,000
Which of the following could be included in your credit report? - ANS (*)Your student loan
payments;Your race;Your current income;Your marital status
4 @COPYRIGHT 2025/2026 ALLRIGHTS RESERVED.
ANSWERS. VERIFIED 2025/2026.
The burden of saving and investing for retirement and healthcare is shifting more and more
from the - ANS (*)Employer to employee;Individual to the government;Employee to
employer;Government to the employee
Social Security is a - ANS ;A privately insured pension plan;None of the above(*)Pay-as-you-
go plan;Federal pension plan
It is estimated that seniors take out in Social Security and Medicare benefits an amount equal to
- ANS ;Less than they paid in;Two times what they paid in(*)Six times what they paid in;Four
times what they paid in
If the credit card issuer notifies you of a significant change in terms, and you do not want to
accept them, your options include: - ANS (*)Any of the above.;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.
Social Security benefits are available for - ANS ;Widows and widowers;Orphans(*)All of the
above;Spouses
Which of the following is true? - ANS Your credit score is the most important part of your
credit report.;Credit card issuers may solicit students on or near campus.;Todays public
computers are secure , and will protect your personal information.;(*)A reward poster for
finding a lost dog is a unilateral contract.
1 @COPYRIGHT 2025/2026 ALLRIGHTS RESERVED.
,This question has been dropped from the assignment. Please answer "Yes" to get one point. -
ANS (*)Yes;no
Debt has which of the following characteristics? - ANS ;Debt must be repaid;The state of
owing something such as money(*)All the above;Debt comes with interest
Video: Which of the following are not allowed to check credit reports? - ANS (*)None of the
above;Landlords;Insurance companies;Employers
A credit card "hold" is limited to - ANS ;Two times the expected charge(*)An arbitrary
amount;$500;$200
If you carry a credit card balance: - ANS ;You cannot be charged an overpayment fee.(*)The
interest rates for purchases, cash advances, and convenience checks may be different.;The same
interest rate must be charged for purchases, cash advances, and convenience checks.;None of
the above.
Which of the following statements about Social Security is true? - ANS ;Social Security
benefits are exempt from federal taxes.;Reduced benefits for early retirement are available at
age 55.;Social Security still collects more that it pays out.(*)None of the above.
Which of the following is important when signing a contract? - ANS ;What constitutes the
end of the contract?;What is the reputation of the other parties?;Is mediation or arbitration
required?(*)All of the above
Which of the following is not "consideration" when creating a contract? - ANS ;Physical
objects.(*)Gender.;Money.;Services.
Avoid the following credit card mistake. - ANS ;Using it to purchase a song on iTunes.;Using it
to pay for a hotel room.(*)Using it to withdraw cash from an ATM.;Using it to rent a car.
2 @COPYRIGHT 2025/2026 ALLRIGHTS RESERVED.
,With a deferred interest plan, if you are late in your payments - ANS ;None of the above;The
outstanding balance is immediately due(*)You may be charged interest on the entire balance
retroactively;You must return the merchandise
A credit card fee may be charged for: - ANS ;Double cycle billing.(*)Late payment;Having a
grace period.;Universal default.
To avoid a late payment fee, if paying by mail the payment must be - ANS (*)Received by the
due date;Mailed by the due date;Postmarked by the due date;None of the above
We define "wealth" as - ANS (*)Lifestyle;10 times the poverty level;Net worth in excess of
$1,000,000;Annual income over $100,000
When a lender is willing to loan money without requiring any collateral, the loan is considered: -
ANS ;Too risky to make the loan.;None of the above.;Secured(*)Unsecured
Seniors are eligible for Medicare at age - ANS ;70 ½;59(*)65;62
The legal limit on interest applied to unpaid credit card balances is: - ANS (*)There is no
limit;35%;37%;28%
The best way to establish credit is to - ANS ;Pay cash for everything(*)None of the
above;Write checks for everything and keep accurate records;Not borrow money
In terms of annual income, to be in the top 1% of households, annual earnings should exceed
about: - ANS ;$160,000;$113,000;$250,000(*)$400,000
Which of the following is the best place to use a credit card? - ANS ;Tire re-tread shops.;Pawn
shops.(*)Super market.;Bars.
3 @COPYRIGHT 2025/2026 ALLRIGHTS RESERVED.
, Video: Advice varies on which debt to pay off first. Which of the following is not a
recommended choice? - ANS ;The debt that bothers you most;The smallest debt(*)The debt
with the lowest interest rate;The debt with the highest interest rate
Revolving credit is when you can: - ANS (*)Re-use your credit line over and over.;Close out
the account by paying a balance transfer fee.;Turn short-term credit into an installment
loan.;Increase your credit limit by 100%.
Which of the following is not a good use of debt? - ANS ;An affordable car loan.;Investing in a
well thought out business.(*)Borrowing money for a vacation.;An affordable home loan.
Fees for inactivity, loading money, monthly maintenance and checking your balance are
common to - ANS ;Debit Cards;Credit Cards;None of the above(*)Prepaid cards
To become a millionaire ("financially independent") in today's dollars, it is required for a
household to have annual income of at least: - ANS ;$400,000(*)None of the
above.;$200,000;$250,000
Video: The median credit score is: - ANS ;512;612(*)712;412
Identity theft can be done - ANS ;By theft of a wallet or purse(*)All the above;By email or
phone;By hacking
The most common error found in credit reports is: - ANS ;Social Security number is in
error.;Charges mistakenly reported.;It's not your report.(*)All the above.
To be in the top 10% of households, annual earnings should exceed about -
ANS (*)$113,000;$68,000;$160,000;$240,000
Which of the following could be included in your credit report? - ANS (*)Your student loan
payments;Your race;Your current income;Your marital status
4 @COPYRIGHT 2025/2026 ALLRIGHTS RESERVED.
