GEB 3006 : Financial Literacy
Comprehensive Resource To Help You Ace 2026-2027
Exams Includes Frequently Tested Questions With
ELABORATED 100% Correct COMPLETE SOLUTIONS
Guaranteed Pass First Attempt!! Current Update!!
1. What two factors count for 65% of your FICO score?
a) Income and payment history
b) Employment history and outstanding debts
c) Payment history and outstanding debts
d) Income and outstanding debts - Correct Answer: c) Payment history and
outstanding debts
2. Which company has developed the MOST commonly used credit score to
evaluate an individual's credit?
a) Experian
b) Transunion
c) Fair Isaac Corporation
d) Equifax - Correct Answer: c) Fair Isaac Corporation
3. You should try to achieve a FICO score of at least ________ in order to receive a
top credit rating.
a) 840
b) 640
c) 760
,d) 940 - Correct Answer: c) 760
4. What is the debt to credit limit ratio for the following individual?
Visa CardMaster CardCredit Limit$10,000$20,000Balance
Due$2,000$19,000Available Credit$8,000$1,000
a) 30%, and decreasing this ratio will help the credit score
b) 70%, and decreasing this ratio will help the credit score
c) 70%, and increasing this ratio will help the credit score
d) 30%, and increasing this ratio will help the credit score. - Correct Answer: b)
70%, and decreasing this ratio will help the credit score
5. True or False?
It is possible that canceling an old credit card with no balance due could hurt your
credit score. - Correct Answer: True
6. True or False?
If an individual gets several quotes on a new mortgage within a two week period,
it should not immediately impact their credit score. The credit score may later be
impacted by the size of the mortgage and related monthly payments. - Correct
Answer: True
7. A married couple is applying for a mortgage. One spouse has a low FICO score
and one has a high FICO score. What is their best strategy for getting the lowest
interest rate possible?
,a) Apply in both spouses names since the banks will use the higher score in
evaluating the mortgage application.
b) Apply in the name of the spouse with the highest score. - Correct Answer:
b) Apply in the name of the spouse with the highest score.
8. Which of the following statements is true?
a) You Answered The treasury yield curve is normally downward sloping, with long
term rates being higher than short term rates.
b) The treasury yield curve is normally upward sloping, with long term rates being
higher than short term rates.
c) The treasury yield curve is normally downward sloping, with short term rates
being higher than long term rates.
d) The treasury yield curve is normally upward sloping, with short term rates
being higher than long term rates. - Correct Answer: b) The treasury yield
curve is normally upward sloping, with long term rates being higher than short
term rates.
9. True or False?
Having mortgage debt is generally considered better than having credit card debt.
- Correct Answer: True
10. True or False?
It is illegal for an employer to review your credit report as part of the application
process. - Correct Answer: False
, 11. True or False?
Insurance companies are allowed to review and consider your credit score before
quoting a premium. - Correct Answer: True
12. True or False?
Assume you have three credit cards, each having a balance due of $500 for a total
of $1,500. Each card has a different interest rate ranging from 12% to 20%. The
minimum payment on each card is $10. If the minimum payment is not made,
there is a $50 penalty.
If you only have $500 to pay on your credit cards this month, the best way to
minimize your interest cost is to pay an equal amount of money on each card. -
Correct Answer: False
13. True or False?
In general, applying for and receiving new credit cards will tend to decrease your
FICO score. - Correct Answer: True
14. True or False?
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 inherit
the credit card debt. - Correct Answer: False
15. Interest rates on 30 year fixed rate mortgages tend to follow or correlate with:
a) The 5 year treasury note rate
b) LIBOR
Comprehensive Resource To Help You Ace 2026-2027
Exams Includes Frequently Tested Questions With
ELABORATED 100% Correct COMPLETE SOLUTIONS
Guaranteed Pass First Attempt!! Current Update!!
1. What two factors count for 65% of your FICO score?
a) Income and payment history
b) Employment history and outstanding debts
c) Payment history and outstanding debts
d) Income and outstanding debts - Correct Answer: c) Payment history and
outstanding debts
2. Which company has developed the MOST commonly used credit score to
evaluate an individual's credit?
a) Experian
b) Transunion
c) Fair Isaac Corporation
d) Equifax - Correct Answer: c) Fair Isaac Corporation
3. You should try to achieve a FICO score of at least ________ in order to receive a
top credit rating.
a) 840
b) 640
c) 760
,d) 940 - Correct Answer: c) 760
4. What is the debt to credit limit ratio for the following individual?
Visa CardMaster CardCredit Limit$10,000$20,000Balance
Due$2,000$19,000Available Credit$8,000$1,000
a) 30%, and decreasing this ratio will help the credit score
b) 70%, and decreasing this ratio will help the credit score
c) 70%, and increasing this ratio will help the credit score
d) 30%, and increasing this ratio will help the credit score. - Correct Answer: b)
70%, and decreasing this ratio will help the credit score
5. True or False?
It is possible that canceling an old credit card with no balance due could hurt your
credit score. - Correct Answer: True
6. True or False?
If an individual gets several quotes on a new mortgage within a two week period,
it should not immediately impact their credit score. The credit score may later be
impacted by the size of the mortgage and related monthly payments. - Correct
Answer: True
7. A married couple is applying for a mortgage. One spouse has a low FICO score
and one has a high FICO score. What is their best strategy for getting the lowest
interest rate possible?
,a) Apply in both spouses names since the banks will use the higher score in
evaluating the mortgage application.
b) Apply in the name of the spouse with the highest score. - Correct Answer:
b) Apply in the name of the spouse with the highest score.
8. Which of the following statements is true?
a) You Answered The treasury yield curve is normally downward sloping, with long
term rates being higher than short term rates.
b) The treasury yield curve is normally upward sloping, with long term rates being
higher than short term rates.
c) The treasury yield curve is normally downward sloping, with short term rates
being higher than long term rates.
d) The treasury yield curve is normally upward sloping, with short term rates
being higher than long term rates. - Correct Answer: b) The treasury yield
curve is normally upward sloping, with long term rates being higher than short
term rates.
9. True or False?
Having mortgage debt is generally considered better than having credit card debt.
- Correct Answer: True
10. True or False?
It is illegal for an employer to review your credit report as part of the application
process. - Correct Answer: False
, 11. True or False?
Insurance companies are allowed to review and consider your credit score before
quoting a premium. - Correct Answer: True
12. True or False?
Assume you have three credit cards, each having a balance due of $500 for a total
of $1,500. Each card has a different interest rate ranging from 12% to 20%. The
minimum payment on each card is $10. If the minimum payment is not made,
there is a $50 penalty.
If you only have $500 to pay on your credit cards this month, the best way to
minimize your interest cost is to pay an equal amount of money on each card. -
Correct Answer: False
13. True or False?
In general, applying for and receiving new credit cards will tend to decrease your
FICO score. - Correct Answer: True
14. True or False?
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 inherit
the credit card debt. - Correct Answer: False
15. Interest rates on 30 year fixed rate mortgages tend to follow or correlate with:
a) The 5 year treasury note rate
b) LIBOR
