UGBA 135 PREPARATION TEST 2026
QUESTIONS AND CORRECT ANSWERS
GRADED A+
● What factors directly affect your credit score? (Choose all that apply.)
A. Annual Income
B. Payment History
C. Debt Burden
D. Length of Credit History. Answer: B. Payment History
C. Debt Burden
D. Length of Credit History
● Which factor has the largest direct impact on your credit score?
A. Payment History
B. Length of Credit History
C. Debt Burden
D. Annual Income. Answer: A. Payment History
● In the video "Prioritizing Savings" which of the following do I NOT
recommend?
,A. Start saving early in life.
B. Save first for your children's education, then for your own retirement.
C. If your employer makes a matching contribution to your 401(k) plan
always contribute enough to get the match.
D. Pay for the things you want in advance. Answer: B. Save first for
your children's education, then for your own retirement.
● T or F: Lenders use credit reports to help them decide whether to loan
you money and what interest rate to charge.. Answer: True
● Zvi Bodie invests in...
A. inflation protected US bonds.
B. futures.
C. gold.
D. international common stock index funds.. Answer: A. inflation
protected US bonds.
● T or F: Asset allocation refers to deciding which individual stocks to
buy.. Answer: False
● T or F: In most cases, as people approach retirement age, it is
recommended that they increase the percentage of their financial
, investments held in stocks and decrease the percentage held in bonds..
Answer: False
● T or F: Most target date funds decrease their allocation to stocks over
time.. Answer: False
● T or F: Benjamin Graham recommended holding no more than 75% of
one's portfolio in stocks and no less than 25% in gold.. Answer: False
● T or F: Actively trading common stocks is the best long-term
investment strategy for most investors.. Answer: False
● The potential advantages of index funds are
A. Many, though not all, are well diversified.
B. Most, though not all, beat the market every year.
C. Many, though not all, have low fees. Answer: A. Many, though not
all, are well diversified.
C. Many, though not all, have low fees
● T or F: It is surprisingly difficult to look up the fees for mutual funds?.
Answer: False
QUESTIONS AND CORRECT ANSWERS
GRADED A+
● What factors directly affect your credit score? (Choose all that apply.)
A. Annual Income
B. Payment History
C. Debt Burden
D. Length of Credit History. Answer: B. Payment History
C. Debt Burden
D. Length of Credit History
● Which factor has the largest direct impact on your credit score?
A. Payment History
B. Length of Credit History
C. Debt Burden
D. Annual Income. Answer: A. Payment History
● In the video "Prioritizing Savings" which of the following do I NOT
recommend?
,A. Start saving early in life.
B. Save first for your children's education, then for your own retirement.
C. If your employer makes a matching contribution to your 401(k) plan
always contribute enough to get the match.
D. Pay for the things you want in advance. Answer: B. Save first for
your children's education, then for your own retirement.
● T or F: Lenders use credit reports to help them decide whether to loan
you money and what interest rate to charge.. Answer: True
● Zvi Bodie invests in...
A. inflation protected US bonds.
B. futures.
C. gold.
D. international common stock index funds.. Answer: A. inflation
protected US bonds.
● T or F: Asset allocation refers to deciding which individual stocks to
buy.. Answer: False
● T or F: In most cases, as people approach retirement age, it is
recommended that they increase the percentage of their financial
, investments held in stocks and decrease the percentage held in bonds..
Answer: False
● T or F: Most target date funds decrease their allocation to stocks over
time.. Answer: False
● T or F: Benjamin Graham recommended holding no more than 75% of
one's portfolio in stocks and no less than 25% in gold.. Answer: False
● T or F: Actively trading common stocks is the best long-term
investment strategy for most investors.. Answer: False
● The potential advantages of index funds are
A. Many, though not all, are well diversified.
B. Most, though not all, beat the market every year.
C. Many, though not all, have low fees. Answer: A. Many, though not
all, are well diversified.
C. Many, though not all, have low fees
● T or F: It is surprisingly difficult to look up the fees for mutual funds?.
Answer: False
