UGBA 135 FINAL Exam 2026 MOST
RecentTested,Actual Exam Questions
(2026) WITH Recent Newest Verified
And Well Analyzed Exam Questions
(Actual Exam 2026-2027) Correct
Detailed & Verified ANSWERS (100%
Accurate Solutions) ||ALREADY
GRADED A+||Exam Guarantee Pass!!
What is considered "bad debt"? - ANSWERS-- Borrowing money to support a lifestyle of
living beyond one's means
What is "good debt"? - ANSWERS-Taking out loans in order to pay off a car, a
mortgage or an education or starting a business
What is a deferred interest plan - ANSWERS-A plan that enables a consumer to
purchase big - ticket items paying no interest or a low "teaser" rate of interest over a
promotional period.
What are Gift Cards? - ANSWERS-- Stored value cards, usually for use at a specific
retailer or merchant
What is a cashier's check? - ANSWERS-- A check purchased by you from a bank,
payable to a third party designated by you.
What is a certified Check? - ANSWERS-- A personal check the bank guarantees as
being supported by funds in your account
,What is credit? - ANSWERS-The amount of money a lender is willing to lend subject to
repayment terms and conditions such as interest, fees and penalties
What is Debt? - ANSWERS-- The state of owing something such as money
What is a Debtor (or borrower)? - ANSWERS-- A person or entity with debt which owes
or has the obligations to repay the debt
What is the definition of a Modern Day Millionaire? - ANSWERS-- Financially
independent, no government assistance, living the life they want to lead
What is a credit card? - ANSWERS-- An unsecured line of credit
- based on good faith and credit history
- this is a risk for a bank
What is a debit card? - ANSWERS-- A secured line of credit
- the bank is taking no risk in issuing one of these
What is a charge card? - ANSWERS-- Issued by a retailer allowing you to charge
purchases made only with their store
- store credit usually carries high rates or interest as high as 20 - 30% on unpaid
balances
What is prepaid card? - ANSWERS-- Offered by banks and non- banks - not linked to
one's bank account
- entails high fees and interest
What is a payday loan? - ANSWERS-- A high interest short term cash loan that is
intended to be repaid by future paychecks
, What is installment debt? - ANSWERS-- Money that is borrowed to purchase large
items such as a car or furniture paid over time
- borrower purchases the item and pays for it at regular intervals until the loan is paid
back in full
What is principle? - ANSWERS-- The amount of money that is borrowed or loaned
What is interest - ANSWERS-THE COST OF MONEY
- paid by the borrower to obtain the used of the principal or received by the lender for
providing the principal - expressed as APR (annual percentage rate)
What is the Fixed Rate of Interest? - ANSWERS-- A loan with an interest rate that will
remain at a predetermined or "fixed" rate for the life or term of the loan - the rate does
not fluctuate.
What is an adjustable Rate of interest? - ANSWERS-- A loan where the rate of interest
is not fixed but may change at various specified times
- most commonly foun din homes where the interest rate is established for a few years
and is then changed to a new rate for the balance of the loan
What is the "go - to" rate? - ANSWERS-- The interest rate you are charged on upaid
credit card balances, in addition to the variable rate to determine the total rate of interest
on your account
What is revolving credit? - ANSWERS-- credit or funds made available to you for use at
any time - subject to the terms of repayment - you can use your credit line over and over
again up to its limit - it revolves
What is the default rate? - ANSWERS-- an accelerated rate of interest, typically 28 -
35% charged on your credit balance as a penalty - didn't make minimum payment on
due date - or payment isn't honored by the bank such as a bounced check
RecentTested,Actual Exam Questions
(2026) WITH Recent Newest Verified
And Well Analyzed Exam Questions
(Actual Exam 2026-2027) Correct
Detailed & Verified ANSWERS (100%
Accurate Solutions) ||ALREADY
GRADED A+||Exam Guarantee Pass!!
What is considered "bad debt"? - ANSWERS-- Borrowing money to support a lifestyle of
living beyond one's means
What is "good debt"? - ANSWERS-Taking out loans in order to pay off a car, a
mortgage or an education or starting a business
What is a deferred interest plan - ANSWERS-A plan that enables a consumer to
purchase big - ticket items paying no interest or a low "teaser" rate of interest over a
promotional period.
What are Gift Cards? - ANSWERS-- Stored value cards, usually for use at a specific
retailer or merchant
What is a cashier's check? - ANSWERS-- A check purchased by you from a bank,
payable to a third party designated by you.
What is a certified Check? - ANSWERS-- A personal check the bank guarantees as
being supported by funds in your account
,What is credit? - ANSWERS-The amount of money a lender is willing to lend subject to
repayment terms and conditions such as interest, fees and penalties
What is Debt? - ANSWERS-- The state of owing something such as money
What is a Debtor (or borrower)? - ANSWERS-- A person or entity with debt which owes
or has the obligations to repay the debt
What is the definition of a Modern Day Millionaire? - ANSWERS-- Financially
independent, no government assistance, living the life they want to lead
What is a credit card? - ANSWERS-- An unsecured line of credit
- based on good faith and credit history
- this is a risk for a bank
What is a debit card? - ANSWERS-- A secured line of credit
- the bank is taking no risk in issuing one of these
What is a charge card? - ANSWERS-- Issued by a retailer allowing you to charge
purchases made only with their store
- store credit usually carries high rates or interest as high as 20 - 30% on unpaid
balances
What is prepaid card? - ANSWERS-- Offered by banks and non- banks - not linked to
one's bank account
- entails high fees and interest
What is a payday loan? - ANSWERS-- A high interest short term cash loan that is
intended to be repaid by future paychecks
, What is installment debt? - ANSWERS-- Money that is borrowed to purchase large
items such as a car or furniture paid over time
- borrower purchases the item and pays for it at regular intervals until the loan is paid
back in full
What is principle? - ANSWERS-- The amount of money that is borrowed or loaned
What is interest - ANSWERS-THE COST OF MONEY
- paid by the borrower to obtain the used of the principal or received by the lender for
providing the principal - expressed as APR (annual percentage rate)
What is the Fixed Rate of Interest? - ANSWERS-- A loan with an interest rate that will
remain at a predetermined or "fixed" rate for the life or term of the loan - the rate does
not fluctuate.
What is an adjustable Rate of interest? - ANSWERS-- A loan where the rate of interest
is not fixed but may change at various specified times
- most commonly foun din homes where the interest rate is established for a few years
and is then changed to a new rate for the balance of the loan
What is the "go - to" rate? - ANSWERS-- The interest rate you are charged on upaid
credit card balances, in addition to the variable rate to determine the total rate of interest
on your account
What is revolving credit? - ANSWERS-- credit or funds made available to you for use at
any time - subject to the terms of repayment - you can use your credit line over and over
again up to its limit - it revolves
What is the default rate? - ANSWERS-- an accelerated rate of interest, typically 28 -
35% charged on your credit balance as a penalty - didn't make minimum payment on
due date - or payment isn't honored by the bank such as a bounced check
