UGBA 135 final exam UPDATED ACTUAL Questions And Correct Answers
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 True
personally gaurantee a loan i.e. a home
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
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
, At what age are benefits available for social security and 65
medicare?
Are social security and unemployment benefits taxable yes
income?
what's the most important thing when determining your Paying bills on time over time
credit score?
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 contact Transunion, Experian, and Equifax
thing you should do?
If you borrow money carrying a balance and you make to the credit card with the highest interest
an extra payment above the minimum where do you want
the extra money to go?
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? 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 Record of paying bills on time over time
you get a score? Debt-tocerdit ratio
Length of credit history
New accounts and recent applications for credit
Mix of credit cards and loans
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 True
personally gaurantee a loan i.e. a home
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
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
, At what age are benefits available for social security and 65
medicare?
Are social security and unemployment benefits taxable yes
income?
what's the most important thing when determining your Paying bills on time over time
credit score?
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 contact Transunion, Experian, and Equifax
thing you should do?
If you borrow money carrying a balance and you make to the credit card with the highest interest
an extra payment above the minimum where do you want
the extra money to go?
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? 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 Record of paying bills on time over time
you get a score? Debt-tocerdit ratio
Length of credit history
New accounts and recent applications for credit
Mix of credit cards and loans
