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UGBA 135 final exam ALL 250 QUESTIONS AND
CORRECT ANSWERS LATEST UPDATE THIS
YEAR
UGBA 135 final exam
At what age are benefits available for social security and medicare?
65
Are social security and unemployment benefits taxable income?
yes
what's the most important thing when determining your credit score?
Paying bills on time over time
what are late fees and how do you avoid them?
Pay your shit on time. payment late on minimum credit card payment: can't be greater than
your minimum payment
If you are the victim of credit card theft, what 's the first thing you should do?
contact Transunion, Experian, and Equifax
1
, Page 2 of 42
If you borrow money carrying a balance and you make an extra payment above the minimum
where do you want the extra money to go?
to the credit card with the highest interest
What's the rule of 72?
How long it takes for a sum of money to double at a given interest rate 72/interest rate = # of
years to double OR 72/# of years to double = interest rate
What's a general partner?
A general partner has the authority to act on behalf of the business without the knowledge or
permission of the other partners. Unlike a limited or silent partner, the general partner may
have unlimited liability for the debts of the business.
T/F f you start a business a lender will want you to personally gaurantee a loan i.e. a home
True
what's the first thing you need to start a business?
An idea
what's part A of medicare?
Part A medicare is free to seniors who apply and is financed by a 2.9%payroll tax on all earned
income paid by all workers with no salary cap. In effect, 1.45% is paid by the worker and 1.45%
is paid by the employee
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Part B?
Part B of medicare is optional and means tested. It is financed by monthly premiums paid by
the insured which currently range from about to $134 to $428 per month, based on a person’s
prior year’s adjusted gross income. Is it paid directly or deducted from Social Security
checks. Parts A, B, and D have deductibles.
Part D?
Part D of medicare is optional and means tested. It is a prescription drug plan currently
provided only by private insurance companies and financed 25% by monthly premiums from
the insured and 75% by taxes.
B & D are means tested which means your income must be low enough to quslify for the
program
what is a prepaid card?
Prepaid cards are offered by banks and non banks. They are not linked to a bank account.
Prepaid cards were initially designed to provide less the affluent, those without a bank account,
to carry money. However, bnks have found that they can be quite lucrative as they may charge
initiation fees, inactivity fees, fees to load money onto the card, fees if you do NOT load money
onto the card, fees to check balane info, fees to use an atm for cash, and fees for using a check
to close an account.
What is variable rate of interest?
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, Page 4 of 42
A variable rate of interest is an interest rate that moves up and down based upon a
benchmark interest rate which is not controlled by the lender. It is now commonly used by
credit card issues. It is now commonly used by the credit card issuers. One example would be to
base the variable rate on the “prime rate” of interest which is supposesdly the lowest interest
rate banks charge their best customers.
What is a go-to rate?
A go-to rate is an interest rate you are charged on unpaid credit card balances, in additon to
the variable rate, to determine the total rate of interest on your account. Your go-to rate is
based on your credit history. As your credit card history improvesor declines, so is the likelihood
that your go-to-rate will rise or fall on future borrowings.
For examples, if your go-to-rate is 8% and the variable rate is 3% your total rate of interest o
unpaid balances is 11%. If interest rates rise and the variable rate increases to 5% your total
rate of interest will rise to 13%.
What is the minimium crirteria for a credit score?
At least one reported "account" which has been open for at least six months. At least one
report that has been reported by a lender in the last six months and nothing that indicates
you're deceased.
What records need to be collected about you before you get a score?
4
UGBA 135 final exam ALL 250 QUESTIONS AND
CORRECT ANSWERS LATEST UPDATE THIS
YEAR
UGBA 135 final exam
At what age are benefits available for social security and medicare?
65
Are social security and unemployment benefits taxable income?
yes
what's the most important thing when determining your credit score?
Paying bills on time over time
what are late fees and how do you avoid them?
Pay your shit on time. payment late on minimum credit card payment: can't be greater than
your minimum payment
If you are the victim of credit card theft, what 's the first thing you should do?
contact Transunion, Experian, and Equifax
1
, Page 2 of 42
If you borrow money carrying a balance and you make an extra payment above the minimum
where do you want the extra money to go?
to the credit card with the highest interest
What's the rule of 72?
How long it takes for a sum of money to double at a given interest rate 72/interest rate = # of
years to double OR 72/# of years to double = interest rate
What's a general partner?
A general partner has the authority to act on behalf of the business without the knowledge or
permission of the other partners. Unlike a limited or silent partner, the general partner may
have unlimited liability for the debts of the business.
T/F f you start a business a lender will want you to personally gaurantee a loan i.e. a home
True
what's the first thing you need to start a business?
An idea
what's part A of medicare?
Part A medicare is free to seniors who apply and is financed by a 2.9%payroll tax on all earned
income paid by all workers with no salary cap. In effect, 1.45% is paid by the worker and 1.45%
is paid by the employee
2
, Page 3 of 42
Part B?
Part B of medicare is optional and means tested. It is financed by monthly premiums paid by
the insured which currently range from about to $134 to $428 per month, based on a person’s
prior year’s adjusted gross income. Is it paid directly or deducted from Social Security
checks. Parts A, B, and D have deductibles.
Part D?
Part D of medicare is optional and means tested. It is a prescription drug plan currently
provided only by private insurance companies and financed 25% by monthly premiums from
the insured and 75% by taxes.
B & D are means tested which means your income must be low enough to quslify for the
program
what is a prepaid card?
Prepaid cards are offered by banks and non banks. They are not linked to a bank account.
Prepaid cards were initially designed to provide less the affluent, those without a bank account,
to carry money. However, bnks have found that they can be quite lucrative as they may charge
initiation fees, inactivity fees, fees to load money onto the card, fees if you do NOT load money
onto the card, fees to check balane info, fees to use an atm for cash, and fees for using a check
to close an account.
What is variable rate of interest?
3
, Page 4 of 42
A variable rate of interest is an interest rate that moves up and down based upon a
benchmark interest rate which is not controlled by the lender. It is now commonly used by
credit card issues. It is now commonly used by the credit card issuers. One example would be to
base the variable rate on the “prime rate” of interest which is supposesdly the lowest interest
rate banks charge their best customers.
What is a go-to rate?
A go-to rate is an interest rate you are charged on unpaid credit card balances, in additon to
the variable rate, to determine the total rate of interest on your account. Your go-to rate is
based on your credit history. As your credit card history improvesor declines, so is the likelihood
that your go-to-rate will rise or fall on future borrowings.
For examples, if your go-to-rate is 8% and the variable rate is 3% your total rate of interest o
unpaid balances is 11%. If interest rates rise and the variable rate increases to 5% your total
rate of interest will rise to 13%.
What is the minimium crirteria for a credit score?
At least one reported "account" which has been open for at least six months. At least one
report that has been reported by a lender in the last six months and nothing that indicates
you're deceased.
What records need to be collected about you before you get a score?
4
