ugba 135 midterm 1
ALL Bankruptcy are handled in federal court - correct answer TRUE
Should you always try to contribute enough to your 401K to get the employer match? - correct answer
Yes
Are community property laws established by the IRS or states? - correct answer States
What is a notary public? - correct answer A public officer constituted by law to witness the execution of
certain classes of documents like mortgage documents, wills, trusts, deeds
What is a prenup agreement? - correct answer A prenuptial agreement is entered into before marriage.
This agreement can set forth what will happen to your and your spouse's assets and income in the
unfortunate event of divorce, separation or death.
By filing for bankruptcy, do you get rid of all of your debts? - correct answer All debts EXCEPT taxes,
alimony, child support, student loans
Who said compound interest is the greatest discovery of mankind? - correct answer Albert Einstein
Times of inflation, what happens to the interest rate? (up or down) - correct answer Higher interest rates
What's the definition of compound interest? - correct answer Interest paid on both the principal and
accumulated interest
Does it take a dollar of wages to pay back $1 of debt? - correct answer No, it takes more than a dollar
due to taxes
, What is the concept of the time value of money? - correct answer Money is worth different amounts at
different times
What is the biggest reason to start saving ASAP? - correct answer Compounding interest
As people get closer to retirement, how should they adjust their portfolio? - correct answer Adjust
portfolio to be less risky, more bonds less stocks
What is APR? Is that higher than the annual interest rate? - correct answer Annual Percentage Rate,
higher than the interest rate because APR includes fees
According to the nightingale survey, What % of the people who people who start working at 25 become
financial independence by 65? - correct answer 5%
What types of accounts does the FDIC insure up to $250,000 - correct answer CD, checking accounts,
savings accounts, IRA (Individual Retirement Accounts) and certain other retirement and trust accounts
Everytime you get a paycheck, our goal is to save what percent? - correct answer 15% of total income
The RULE OF FRED!!!!!!!!!!!! - correct answer I GET PAID FIRST
What's the first step in saving money? - correct answer Creating a budget or spending plan
What's our definition of being frugal? - correct answer Not cheap but value oriented, working toward
their goals, budgeting, and controlling expenses
What is the rule of 72? - correct answer Estimate how long it takes a sum of money to double,
72/interest rate
If you have different types of debt, which is your first priority? (CC) - correct answer Pay off the loan with
the highest interest
ALL Bankruptcy are handled in federal court - correct answer TRUE
Should you always try to contribute enough to your 401K to get the employer match? - correct answer
Yes
Are community property laws established by the IRS or states? - correct answer States
What is a notary public? - correct answer A public officer constituted by law to witness the execution of
certain classes of documents like mortgage documents, wills, trusts, deeds
What is a prenup agreement? - correct answer A prenuptial agreement is entered into before marriage.
This agreement can set forth what will happen to your and your spouse's assets and income in the
unfortunate event of divorce, separation or death.
By filing for bankruptcy, do you get rid of all of your debts? - correct answer All debts EXCEPT taxes,
alimony, child support, student loans
Who said compound interest is the greatest discovery of mankind? - correct answer Albert Einstein
Times of inflation, what happens to the interest rate? (up or down) - correct answer Higher interest rates
What's the definition of compound interest? - correct answer Interest paid on both the principal and
accumulated interest
Does it take a dollar of wages to pay back $1 of debt? - correct answer No, it takes more than a dollar
due to taxes
, What is the concept of the time value of money? - correct answer Money is worth different amounts at
different times
What is the biggest reason to start saving ASAP? - correct answer Compounding interest
As people get closer to retirement, how should they adjust their portfolio? - correct answer Adjust
portfolio to be less risky, more bonds less stocks
What is APR? Is that higher than the annual interest rate? - correct answer Annual Percentage Rate,
higher than the interest rate because APR includes fees
According to the nightingale survey, What % of the people who people who start working at 25 become
financial independence by 65? - correct answer 5%
What types of accounts does the FDIC insure up to $250,000 - correct answer CD, checking accounts,
savings accounts, IRA (Individual Retirement Accounts) and certain other retirement and trust accounts
Everytime you get a paycheck, our goal is to save what percent? - correct answer 15% of total income
The RULE OF FRED!!!!!!!!!!!! - correct answer I GET PAID FIRST
What's the first step in saving money? - correct answer Creating a budget or spending plan
What's our definition of being frugal? - correct answer Not cheap but value oriented, working toward
their goals, budgeting, and controlling expenses
What is the rule of 72? - correct answer Estimate how long it takes a sum of money to double,
72/interest rate
If you have different types of debt, which is your first priority? (CC) - correct answer Pay off the loan with
the highest interest
