UGBA 135 ACTUAL EXAM PAPER 2026
QUESTIONS WITH ANSWERS GRADED A+
◍ Ownership Investments (Equity).
Answer: 1. Real estate: your home, rental apartments and investments in
income-producing property, illliquid, hard to sell off 2. Stock (equity): °
fractional ownership in corporation° backseat of lenders (bond holders) for
bankruptcy° no fixed schedule of payments or maturity (you don't know
when/if you are getting your money back)° how do stocks provide
protection from inflation? returns come from:° dividends - an optional
payment by a corporation to its shareholders ° capital appreciation or loss -
stock prices moves up or down = total return
◍ Financial Building Blocks:Additional Accounts.
Answer: ° mortgage ° personal loan / LOC ° 529 ° HSA ° FSA ° these do
not have to be at the same company as your other accounts
◍ If the annual interest is 4% and APR is 4.3% - which do you pay?.
Answer: you pay the APR which is compounded daily
◍ Retirement Account Differences:401(k)/403(b).
Answer: ° $24500 limit per year (employer match does not count towards
limit) ° funding window: Jan 1 - Dec 31° must be with employer custodian °
can loan against it ° roth or traditional ° no income limits ° completely
dictated by employer
◍ What is AGI.
Answer: subtract retirement plans, educator expenses, student loan interest,
tuition and fees as well as health savings accounts from the TOTAL income
◍ how do you depreciate real estate?.
Answer: on a straight line basis
,◍ 1031 Exchange.
Answer: trade properties without paying tax
◍ who established a 401(k) plan?.
Answer: Your employer
◍ last.
Answer: last price a stock as bought and sold - can change in a nanosecond
◍ if you don't exercise stock option.
Answer: then wait to sell - could have huge tax burden then tax could tank
◍ Facts to know about Social Security.
Answer: no means test for SSyou do not need to be poor to receive a
benefitPay as you go plan - so as costs rise taxes must also rise
◍ are social security contributions tax deductible?.
Answer: not for the employees
◍ what is a qualified stock dividends tax rate?.
Answer: max of 20%
◍ Intermediate funds.
Answer: ° brokerage account ° moderately invested ° can withdraw with no
penalty ° taxes, yes
◍ What is "good debt"?.
Answer: Taking out loans in order to pay off a car, a mortgage or an
education or starting a business
◍ What do if you have fallen victim to credit card theft?.
Answer: contact issuer or bank immediately - if you call within 2 days
limited to $50 of losses - if you call beyond 2 liable for up to $500 losses - if
you call after 60 days - fully liable
◍ what is a hold on your credit card?.
Answer: hotels will put a hold on your credit card for much more than cost
of room and release it after you check out cannot create over-daft charge
unless executed
,◍ How old do you have to be to withdraw from an IRA? Penalty free?.
Answer: 59.5 - Roth70.5 - Traditional There is a minimum amount
◍ What are the contributions to social security?.
Answer: employer and employee share equally in the program - the
employers contributions are tax deductible - the employers are not
◍ why would you refinance a mortgage?.
Answer: get lower interest rates consolidate 1st and 2nd mortgage lower
your monthly payments eliminate PMIbuild up equity
◍ Financial Building Blocks: Checking.
Answer: Your "workhorse" accountlook for:° good app/tech interface ° good
customer service ° ATM rebates ° speedy ACH transfers ° Nationwide
presence do not need:° interest bearing
◍ second lines on a piece of property?.
Answer: seconds mortgageHELOC home equity loan
◍ Pass through deduction on taxes.
Answer: 20% deduction for small business that produce shit
◍ Title Insurance Company.
Answer: - guarantee clear ownership of a property to buyers and lenders
◍ What are none qualified ordinary dividends?.
Answer: dividends from stock held for less than 61 days
◍ to the owner of a rental real estate- what is tax dedictible?.
Answer: depreciationinsurance maintenance and repair
◍ P/E ratio.
Answer: price per share/earnings per share
◍ Fred's Law of Cars.
Answer: The time you spend with the dealer is inversely related to the price
you pay
◍ New Tax Law.
, Answer: The maximum state and local property taxes is $10,000
◍ What is budgeting?.
Answer: - a financial plan that enables one to manage their money instead of
letting the money manage you
◍ can you and your parents both claim you for the temporary tax credit.
Answer: no - you can only be claimed as a dependent on one return
◍ What are methods of identity theft?.
Answer: theft from purse or wallet, phishing (via email or phone) adn
hacking
◍ limit order to buy.
Answer: highest you will pay
◍ Retirement: Total Control.
Answer: ° savings vs. spending ° asset allocations
◍ What is a charge card?.
Answer: - 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
◍ Is there social security taxes on earned income?.
Answer: no, not on interest, dividends or capital gains
◍ when financing a new car, the loan should not be more than.
Answer: 36 months
◍ bid.
Answer: The highest price a buyer is willing to pay for a stock.
◍ dealers invoice price.
Answer: the price that a dealer pays to purchase a new vehicle from the
manufacturer
◍ dollar cost averaging.
Answer: investing the same amount of money on a regular basis regardless
QUESTIONS WITH ANSWERS GRADED A+
◍ Ownership Investments (Equity).
Answer: 1. Real estate: your home, rental apartments and investments in
income-producing property, illliquid, hard to sell off 2. Stock (equity): °
fractional ownership in corporation° backseat of lenders (bond holders) for
bankruptcy° no fixed schedule of payments or maturity (you don't know
when/if you are getting your money back)° how do stocks provide
protection from inflation? returns come from:° dividends - an optional
payment by a corporation to its shareholders ° capital appreciation or loss -
stock prices moves up or down = total return
◍ Financial Building Blocks:Additional Accounts.
Answer: ° mortgage ° personal loan / LOC ° 529 ° HSA ° FSA ° these do
not have to be at the same company as your other accounts
◍ If the annual interest is 4% and APR is 4.3% - which do you pay?.
Answer: you pay the APR which is compounded daily
◍ Retirement Account Differences:401(k)/403(b).
Answer: ° $24500 limit per year (employer match does not count towards
limit) ° funding window: Jan 1 - Dec 31° must be with employer custodian °
can loan against it ° roth or traditional ° no income limits ° completely
dictated by employer
◍ What is AGI.
Answer: subtract retirement plans, educator expenses, student loan interest,
tuition and fees as well as health savings accounts from the TOTAL income
◍ how do you depreciate real estate?.
Answer: on a straight line basis
,◍ 1031 Exchange.
Answer: trade properties without paying tax
◍ who established a 401(k) plan?.
Answer: Your employer
◍ last.
Answer: last price a stock as bought and sold - can change in a nanosecond
◍ if you don't exercise stock option.
Answer: then wait to sell - could have huge tax burden then tax could tank
◍ Facts to know about Social Security.
Answer: no means test for SSyou do not need to be poor to receive a
benefitPay as you go plan - so as costs rise taxes must also rise
◍ are social security contributions tax deductible?.
Answer: not for the employees
◍ what is a qualified stock dividends tax rate?.
Answer: max of 20%
◍ Intermediate funds.
Answer: ° brokerage account ° moderately invested ° can withdraw with no
penalty ° taxes, yes
◍ What is "good debt"?.
Answer: Taking out loans in order to pay off a car, a mortgage or an
education or starting a business
◍ What do if you have fallen victim to credit card theft?.
Answer: contact issuer or bank immediately - if you call within 2 days
limited to $50 of losses - if you call beyond 2 liable for up to $500 losses - if
you call after 60 days - fully liable
◍ what is a hold on your credit card?.
Answer: hotels will put a hold on your credit card for much more than cost
of room and release it after you check out cannot create over-daft charge
unless executed
,◍ How old do you have to be to withdraw from an IRA? Penalty free?.
Answer: 59.5 - Roth70.5 - Traditional There is a minimum amount
◍ What are the contributions to social security?.
Answer: employer and employee share equally in the program - the
employers contributions are tax deductible - the employers are not
◍ why would you refinance a mortgage?.
Answer: get lower interest rates consolidate 1st and 2nd mortgage lower
your monthly payments eliminate PMIbuild up equity
◍ Financial Building Blocks: Checking.
Answer: Your "workhorse" accountlook for:° good app/tech interface ° good
customer service ° ATM rebates ° speedy ACH transfers ° Nationwide
presence do not need:° interest bearing
◍ second lines on a piece of property?.
Answer: seconds mortgageHELOC home equity loan
◍ Pass through deduction on taxes.
Answer: 20% deduction for small business that produce shit
◍ Title Insurance Company.
Answer: - guarantee clear ownership of a property to buyers and lenders
◍ What are none qualified ordinary dividends?.
Answer: dividends from stock held for less than 61 days
◍ to the owner of a rental real estate- what is tax dedictible?.
Answer: depreciationinsurance maintenance and repair
◍ P/E ratio.
Answer: price per share/earnings per share
◍ Fred's Law of Cars.
Answer: The time you spend with the dealer is inversely related to the price
you pay
◍ New Tax Law.
, Answer: The maximum state and local property taxes is $10,000
◍ What is budgeting?.
Answer: - a financial plan that enables one to manage their money instead of
letting the money manage you
◍ can you and your parents both claim you for the temporary tax credit.
Answer: no - you can only be claimed as a dependent on one return
◍ What are methods of identity theft?.
Answer: theft from purse or wallet, phishing (via email or phone) adn
hacking
◍ limit order to buy.
Answer: highest you will pay
◍ Retirement: Total Control.
Answer: ° savings vs. spending ° asset allocations
◍ What is a charge card?.
Answer: - 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
◍ Is there social security taxes on earned income?.
Answer: no, not on interest, dividends or capital gains
◍ when financing a new car, the loan should not be more than.
Answer: 36 months
◍ bid.
Answer: The highest price a buyer is willing to pay for a stock.
◍ dealers invoice price.
Answer: the price that a dealer pays to purchase a new vehicle from the
manufacturer
◍ dollar cost averaging.
Answer: investing the same amount of money on a regular basis regardless
