UGBA 135 CERTIFICATION SCRIPT 2026
QUESTIONS WITH SOLUTIONS GRADED A+
◍ Employer pension.
Answer: - retirement plan funded by employer that pays a set income after
retirement based on their salary and years of service- less common now -
Given to education, gov workers, city
◍ When buying a mutual fund in a particular asset class, which of the
following is most important? Whether or not the fund's return the previous
year was in the top 10% of similar funds. The fees the fund charges.
Whether Jim Kramer likes the fund..
Answer: The fees the fund charges
◍ How to save.
Answer: 3 categories1. Must haves - at or below 50% of after tax income2.
Savings - 20% goal of after tax income3. Wants - 30% of after tax income
on wants
◍ How is the expense ratio calculated?.
Answer: Amount invested multiplied by the expense ratio percentage.
◍ What percentage of your credit score is determined by on-time payments?.
Answer: 35%
◍ Mutual fund load.
Answer: - one time fee paid everytime you invest, avoid these like the
plague - Front end load is paid when you invest, back end load is paid when
you sell- Opt for a no load fund, they perform the same as ones with loads
◍ What is a tip for managing multiple savings accounts?.
Answer: Have multiple accounts at one company and nickname them for
their purpose, like 'Emergency Fund' or 'New Car Savings'.
,◍ Which factor has the largest direct impact on your credit score? Annual
Income Length of Credit History Debt Burden Payment History.
Answer: Payment History
◍ What is a systematic way to save?.
Answer: Using accounts like 401(k), High Yield Savings, Roth IRA.
◍ 6 situations to check credit report.
Answer: 1. Applying for certain loan like a mortgage2. Divorce and want
your ex spouses transactions off your perosnal credit record3. Paid off a
court judgement against you4. Dispute with a store and you refused to pay a
bill5. Turned down for a job, rental, insurance because of your credit report,
get a free report within 60 days of being turned down 6. If youve had a
dispute with a lender over whether a bil has been paid and the dispute is
resolved to ensure the bill is no longer on your report
◍ Current balance.
Answer: Total statement balance + charges made in the present day - Since
due date is after the 30 day period - Whatever you used last month and
within the 21-29 days of the statement close date
◍ What does the Consumer Price Index (CPI) measure?.
Answer: The purchasing power of a dollar in different periods.
◍ What is the average US swipe fee charged by credit card companies?.
Answer: Approximately 2.25%.
◍ fund performance.
Answer: - how well a fund has performed in the past- Does NOT predict
how good a fund will do, markets change and fluctuate
◍ What are the three main credit bureaus?.
Answer: Equifax, Experian, and TransUnion.
◍ Credit bureau.
Answer: - company that collects information about your credit history and
gives credit reports to lenders, does not make any lending decisions- 3 main
, ones: Transunion, equifax, experian
◍ Dividends.
Answer: - payments a company makes to its shareholders from its profits for
owning the stock, paid for owning
◍ What does 'pay yourself first' mean?.
Answer: Treat savings as an expense and prioritize saving.
◍ The potential advantages of index funds are Most, though not all, beat the
market every year. Many, though not all, have low fees Many, though not
all, are well diversified..
Answer: Many, though not all, have low fees Many, though not all, are well
diversified.
◍ Statement balance.
Answer: - anything charged within the 30 day period, total amount owed at
the end of the last billing cycle- Minimum amount you need to pay to avoid
missed payments and interest fees
◍ What should you do if you can't pay your credit card in full?.
Answer: Avoid using the credit card.
◍ What is the RMD rule?.
Answer: Required Minimum Distributions must be taken from retirement
accounts after a certain age.
◍ when to use index fund.
Answer: - Long-term investing- Retirement accounts (401k, IRA)- Simpler
investing
◍ Stocks / equities.
Answer: - ownership of a company that can earn returns through price
increases or dividends
◍ 3 scenarios for stocks.
Answer: 1. Company does wellEarns a lot of the company does well Stock
aprpeciates when the company does well2. Company gets byStock value
QUESTIONS WITH SOLUTIONS GRADED A+
◍ Employer pension.
Answer: - retirement plan funded by employer that pays a set income after
retirement based on their salary and years of service- less common now -
Given to education, gov workers, city
◍ When buying a mutual fund in a particular asset class, which of the
following is most important? Whether or not the fund's return the previous
year was in the top 10% of similar funds. The fees the fund charges.
Whether Jim Kramer likes the fund..
Answer: The fees the fund charges
◍ How to save.
Answer: 3 categories1. Must haves - at or below 50% of after tax income2.
Savings - 20% goal of after tax income3. Wants - 30% of after tax income
on wants
◍ How is the expense ratio calculated?.
Answer: Amount invested multiplied by the expense ratio percentage.
◍ What percentage of your credit score is determined by on-time payments?.
Answer: 35%
◍ Mutual fund load.
Answer: - one time fee paid everytime you invest, avoid these like the
plague - Front end load is paid when you invest, back end load is paid when
you sell- Opt for a no load fund, they perform the same as ones with loads
◍ What is a tip for managing multiple savings accounts?.
Answer: Have multiple accounts at one company and nickname them for
their purpose, like 'Emergency Fund' or 'New Car Savings'.
,◍ Which factor has the largest direct impact on your credit score? Annual
Income Length of Credit History Debt Burden Payment History.
Answer: Payment History
◍ What is a systematic way to save?.
Answer: Using accounts like 401(k), High Yield Savings, Roth IRA.
◍ 6 situations to check credit report.
Answer: 1. Applying for certain loan like a mortgage2. Divorce and want
your ex spouses transactions off your perosnal credit record3. Paid off a
court judgement against you4. Dispute with a store and you refused to pay a
bill5. Turned down for a job, rental, insurance because of your credit report,
get a free report within 60 days of being turned down 6. If youve had a
dispute with a lender over whether a bil has been paid and the dispute is
resolved to ensure the bill is no longer on your report
◍ Current balance.
Answer: Total statement balance + charges made in the present day - Since
due date is after the 30 day period - Whatever you used last month and
within the 21-29 days of the statement close date
◍ What does the Consumer Price Index (CPI) measure?.
Answer: The purchasing power of a dollar in different periods.
◍ What is the average US swipe fee charged by credit card companies?.
Answer: Approximately 2.25%.
◍ fund performance.
Answer: - how well a fund has performed in the past- Does NOT predict
how good a fund will do, markets change and fluctuate
◍ What are the three main credit bureaus?.
Answer: Equifax, Experian, and TransUnion.
◍ Credit bureau.
Answer: - company that collects information about your credit history and
gives credit reports to lenders, does not make any lending decisions- 3 main
, ones: Transunion, equifax, experian
◍ Dividends.
Answer: - payments a company makes to its shareholders from its profits for
owning the stock, paid for owning
◍ What does 'pay yourself first' mean?.
Answer: Treat savings as an expense and prioritize saving.
◍ The potential advantages of index funds are Most, though not all, beat the
market every year. Many, though not all, have low fees Many, though not
all, are well diversified..
Answer: Many, though not all, have low fees Many, though not all, are well
diversified.
◍ Statement balance.
Answer: - anything charged within the 30 day period, total amount owed at
the end of the last billing cycle- Minimum amount you need to pay to avoid
missed payments and interest fees
◍ What should you do if you can't pay your credit card in full?.
Answer: Avoid using the credit card.
◍ What is the RMD rule?.
Answer: Required Minimum Distributions must be taken from retirement
accounts after a certain age.
◍ when to use index fund.
Answer: - Long-term investing- Retirement accounts (401k, IRA)- Simpler
investing
◍ Stocks / equities.
Answer: - ownership of a company that can earn returns through price
increases or dividends
◍ 3 scenarios for stocks.
Answer: 1. Company does wellEarns a lot of the company does well Stock
aprpeciates when the company does well2. Company gets byStock value
