UGBA 135 Midterm: Video Quizzes
Which of the following are the two most common chapters (types) for personal bankruptcy? - correct
answer Chapter 7 and 13
In bankruptcy, what is a discharge? - correct answer A discharge is a release from personal liability on
debt
Which of the following is NOT one of the three largest credit reporting agencies? - correct answer Bank
of America
(three: equifax, transunion, experian)
Any credit score above 620 is generally considered to be excellent credit - correct answer false
which of the following contributes the most to your credit score? - correct answer your payment history
employers are never allowed to check credit reports when hiring - correct answer false
lenders use credit reports to help them decide whether to loan you money and what interest rate to
charge, - correct answer true
Which of the following is usually the most important type of debt to focus on paying off quickly: - correct
answer credit card balances
Which types of debt "steal from your future"? - correct answer paycheck advances
credit card balances
one highly recommended method of paying off student loans is to take an early withdrawal from your
traditional IRA or 401(k) plan. - correct answer False
, Why is Social Security called a PAYGO system? - correct answer because the payroll taxes paid by current
workers are used to pay current retirement benefits
most people in good health should claim social security benefits at age 62 - correct answer false
social security started with a huge unfunded liability because benefits were paid to retirees, such as Ida
May Fuller, who had paid very little into the system. - correct answer true
medicare is health insurance for people 50 or older and people under 50 wit certain disabilities or end
stage renal disease - correct answer false
Medicare Part A, hospital insurance is free (i.e., no monthly premium to most Americans over 65.
However people must pay for Medicare Parts B, C and D if they want them - correct answer True
In the video "Overcoming debt interview" Suzanne says that although credit cards were one of the
reasons she got into debt problems, she continues to use credit cards. - correct answer False
Which of the following is a good use of a security fund (also called emergency fun or a rainy day fund)? -
correct answer to help you pay your bills if you lose your job
Which of the following should be a higher priority? - correct answer paying off credit card debt as soon
as possible
most people's emergency (security or rainy day) fund should be invested in the stock market - correct
answer false
should most people save first for retirement or for their children's education? - correct answer their
retirement
suppose you put $100 in a bank savings account that pays 7% annual interest ( and charges no annual
fee). You keep that money in the account for two years (with no withdrawals or additional deposits).
How much money will you have at the end of two years? - correct answer More than $114
Which of the following are the two most common chapters (types) for personal bankruptcy? - correct
answer Chapter 7 and 13
In bankruptcy, what is a discharge? - correct answer A discharge is a release from personal liability on
debt
Which of the following is NOT one of the three largest credit reporting agencies? - correct answer Bank
of America
(three: equifax, transunion, experian)
Any credit score above 620 is generally considered to be excellent credit - correct answer false
which of the following contributes the most to your credit score? - correct answer your payment history
employers are never allowed to check credit reports when hiring - correct answer false
lenders use credit reports to help them decide whether to loan you money and what interest rate to
charge, - correct answer true
Which of the following is usually the most important type of debt to focus on paying off quickly: - correct
answer credit card balances
Which types of debt "steal from your future"? - correct answer paycheck advances
credit card balances
one highly recommended method of paying off student loans is to take an early withdrawal from your
traditional IRA or 401(k) plan. - correct answer False
, Why is Social Security called a PAYGO system? - correct answer because the payroll taxes paid by current
workers are used to pay current retirement benefits
most people in good health should claim social security benefits at age 62 - correct answer false
social security started with a huge unfunded liability because benefits were paid to retirees, such as Ida
May Fuller, who had paid very little into the system. - correct answer true
medicare is health insurance for people 50 or older and people under 50 wit certain disabilities or end
stage renal disease - correct answer false
Medicare Part A, hospital insurance is free (i.e., no monthly premium to most Americans over 65.
However people must pay for Medicare Parts B, C and D if they want them - correct answer True
In the video "Overcoming debt interview" Suzanne says that although credit cards were one of the
reasons she got into debt problems, she continues to use credit cards. - correct answer False
Which of the following is a good use of a security fund (also called emergency fun or a rainy day fund)? -
correct answer to help you pay your bills if you lose your job
Which of the following should be a higher priority? - correct answer paying off credit card debt as soon
as possible
most people's emergency (security or rainy day) fund should be invested in the stock market - correct
answer false
should most people save first for retirement or for their children's education? - correct answer their
retirement
suppose you put $100 in a bank savings account that pays 7% annual interest ( and charges no annual
fee). You keep that money in the account for two years (with no withdrawals or additional deposits).
How much money will you have at the end of two years? - correct answer More than $114
