UGBA 135 Final Exam (Fall 2022)
The Rule of 72 is used to estimate
A. How long will it take you to earn 50%?
B. How long it will take you to out-earn inflation?
C. How long it will take to double your money?
D. None of the above
C (How long it will take to double your money)
Compounding means earning interest on interest (T/F)
True
Who said compound interest is the greatest discovery of mankind?
Albert Eienstien
The best time to decide how much to save for retirement each month is at the end
of the month when you can see how much money you have left over from the
month's paycheck (T/F)
False
The the best time to establish credit is when you don't need it (T/F)
True
The "cornerstone" of wealth is
Being frugal, not cheap but value oriented
Which is NOT "consideration" when creating a contract?
A. Money.
B. Gender.
C. Physical objects.
D. Services.
B (Gender)
When entering into a contract, which is NOT important?
A. The contract being witnessed by a lawyer.
B. What happens if any party fails to perform?
C. All blanks should be filled.
D. What constitutes the end of the contract?
A ( The contract being witnessed by a lawyer)
Which of the following is important when signing a contract?
A. What is the reputation of the other parties?
B. Is mediation or arbitration required?
C. What constitutes the end of the contract?
D. All of the above.
D (all of the above)
Difference between revenues and earnings
Revenues: sales, money coming in
earnings: profits, money you make after all bills are paid
Which of the following is true regarding federal student loans?
A. Congress determines the interest rate each year
B. Interest rates are linked to the 10-year Treasury rate
C. Interest rates for Plus loans are lower than the 10-year Treasury rate
D. Interest rates for grad students are less than those for undergrads
,B (Interest rates are linked to the 10-year Treasury rate)
What factors directly affect your credit score? (choose all that apply).
a. Annual income
b. Length of credit history
c. Payment history
d. Debt burden
BCD
Which factor has the largest direct impact on your credit score?
a. Length of credit history
b. Debt burden
c. Payment history
d. Annual income
C (payment history)
Which of the following is NOT a major credit reporting agency?
A. Discover
B. Transunion
C. Equifax
D. Experian
A. (Discover)
A variable rate of interest is now commonly used by credit card issuers (T/F)
True
Once your credit card is on a variable interest rate, your total interest rate can
rise without your consent. (T/F)
True
Which is NOT an interest rate?
A. Variable
B. Fixed
C. Revolving
D. Go-to
C. (revolving)
True or False: The only interest you pay on your credit card balance is your go to
rate
False
A default rate of interest is a lower rate of credit card interest (T/F)
False
If you are more than 60 days late in making minimum payment the issuer may
charge you the interest default rate (T/F)
True
Under the "card act" the interest default rate may NOT exceed 35%
False
A credit card fee may be charged for:
A. Universal default.
B. Late payment/closing account.
C. Double cycle billing,
D. Having a grace period.
B. (Late payment/closing account.)
, To avoid a late payment fee, if paying by mail the payment must be
A. Postmarked by the due date
B. Received by the due date
C. Mailed by the due date
D. None of the above
B. (Received by the due date)
If you charge more than your credit limit you'll get a late payment fee (T/F)
False
To avoid a late payment penalty fee when paying by mail it must be postmarked
no later than 5pm on the due date (T/F)
False
Banks may waive over the limit fees and late penalties the first time if you ask
(T/F)
True
If you're the victim of credit card theft, what do you do? (R)
Contact the credit card issuer or bank immediately
What is the minimum criteria for a credit score? or card CHECK (R)
6 months of history including:- at least one reported "account" which has been open for
at least six months,• at least one account that has been reported by a lender in the last
six months, and• nothing that indicates you're deceased.
The legal limit on interest applied to unpaid credit card balances is:
A. There is no limit
B. 28%
C. 35%
D. 37%
A. (There is no limit)
The information on your credit report determines your credit score (T/F)
True
Student loan payment delinquencies are reported on your credit report and hurt
credit scores.(T/F)
True
What is the maximum amount of interest you can be charged under the Credit
Card Act? (R)
no legal limit on interest rates
The recently passed Credit Card Act applied to both consumer and business
credit cards. (T/F)
False
Interest in a credit card account is normally calculated:
A. Daily.
B. Weekly.
C. Bi-monthly
.D. Yearly.
A. Daily
Prepaid cards have become very popular because of their low fees (T/F)
False (prepaid cards have "quite lucrative fees")
Prepaid cards may charge a fee to load money onto the card (T/F)
The Rule of 72 is used to estimate
A. How long will it take you to earn 50%?
B. How long it will take you to out-earn inflation?
C. How long it will take to double your money?
D. None of the above
C (How long it will take to double your money)
Compounding means earning interest on interest (T/F)
True
Who said compound interest is the greatest discovery of mankind?
Albert Eienstien
The best time to decide how much to save for retirement each month is at the end
of the month when you can see how much money you have left over from the
month's paycheck (T/F)
False
The the best time to establish credit is when you don't need it (T/F)
True
The "cornerstone" of wealth is
Being frugal, not cheap but value oriented
Which is NOT "consideration" when creating a contract?
A. Money.
B. Gender.
C. Physical objects.
D. Services.
B (Gender)
When entering into a contract, which is NOT important?
A. The contract being witnessed by a lawyer.
B. What happens if any party fails to perform?
C. All blanks should be filled.
D. What constitutes the end of the contract?
A ( The contract being witnessed by a lawyer)
Which of the following is important when signing a contract?
A. What is the reputation of the other parties?
B. Is mediation or arbitration required?
C. What constitutes the end of the contract?
D. All of the above.
D (all of the above)
Difference between revenues and earnings
Revenues: sales, money coming in
earnings: profits, money you make after all bills are paid
Which of the following is true regarding federal student loans?
A. Congress determines the interest rate each year
B. Interest rates are linked to the 10-year Treasury rate
C. Interest rates for Plus loans are lower than the 10-year Treasury rate
D. Interest rates for grad students are less than those for undergrads
,B (Interest rates are linked to the 10-year Treasury rate)
What factors directly affect your credit score? (choose all that apply).
a. Annual income
b. Length of credit history
c. Payment history
d. Debt burden
BCD
Which factor has the largest direct impact on your credit score?
a. Length of credit history
b. Debt burden
c. Payment history
d. Annual income
C (payment history)
Which of the following is NOT a major credit reporting agency?
A. Discover
B. Transunion
C. Equifax
D. Experian
A. (Discover)
A variable rate of interest is now commonly used by credit card issuers (T/F)
True
Once your credit card is on a variable interest rate, your total interest rate can
rise without your consent. (T/F)
True
Which is NOT an interest rate?
A. Variable
B. Fixed
C. Revolving
D. Go-to
C. (revolving)
True or False: The only interest you pay on your credit card balance is your go to
rate
False
A default rate of interest is a lower rate of credit card interest (T/F)
False
If you are more than 60 days late in making minimum payment the issuer may
charge you the interest default rate (T/F)
True
Under the "card act" the interest default rate may NOT exceed 35%
False
A credit card fee may be charged for:
A. Universal default.
B. Late payment/closing account.
C. Double cycle billing,
D. Having a grace period.
B. (Late payment/closing account.)
, To avoid a late payment fee, if paying by mail the payment must be
A. Postmarked by the due date
B. Received by the due date
C. Mailed by the due date
D. None of the above
B. (Received by the due date)
If you charge more than your credit limit you'll get a late payment fee (T/F)
False
To avoid a late payment penalty fee when paying by mail it must be postmarked
no later than 5pm on the due date (T/F)
False
Banks may waive over the limit fees and late penalties the first time if you ask
(T/F)
True
If you're the victim of credit card theft, what do you do? (R)
Contact the credit card issuer or bank immediately
What is the minimum criteria for a credit score? or card CHECK (R)
6 months of history including:- at least one reported "account" which has been open for
at least six months,• at least one account that has been reported by a lender in the last
six months, and• nothing that indicates you're deceased.
The legal limit on interest applied to unpaid credit card balances is:
A. There is no limit
B. 28%
C. 35%
D. 37%
A. (There is no limit)
The information on your credit report determines your credit score (T/F)
True
Student loan payment delinquencies are reported on your credit report and hurt
credit scores.(T/F)
True
What is the maximum amount of interest you can be charged under the Credit
Card Act? (R)
no legal limit on interest rates
The recently passed Credit Card Act applied to both consumer and business
credit cards. (T/F)
False
Interest in a credit card account is normally calculated:
A. Daily.
B. Weekly.
C. Bi-monthly
.D. Yearly.
A. Daily
Prepaid cards have become very popular because of their low fees (T/F)
False (prepaid cards have "quite lucrative fees")
Prepaid cards may charge a fee to load money onto the card (T/F)
