GEB 3006 FINAL EXAM | QUESTIONS WITH
SOLUTIONS
Employer benefits can be worth up to ___ of your base salary - -50%
-Generally the two main employer benefits with the highest value are: - -Retirement
Health Plans
-The health plans that offers the most choice in doctors and has the highest cost - -PPO
-Which of the following health plans generally requires that you first see your primary care
physician and remain within a restricted network of doctors? - -HMO
-Employees without a pension plan should try to save at least _____ of their salary - -10-
15%
-Fidelity Investments recommends that individuals without pensions have about ___ times
their salary at age 67 in order to have a sufficient amount of money to retire.` - -10
-Fidelity Investments recommends that individuals without pensions have about ___ times
their salary at age 30 in order to have a sufficient amount of money to retire. - -1
-At what age will you become eligible for Medicare? - -65
-At what age are you eligible for early Social Security? - -62 and the amount received is a
discounted benefit compared to the full retirement benefit
-Which health plan has a low cost but high deductible? - -HDHP
-The rules for flexible spending accounts generally require that employees use the money
within - -the current year or lose unused savings.
-When you leave your job, you should always rollover your - -401-K assets to a self
directed rollover IRA.
-Between 1990 and 2010, the average US savings rate was around - -5%
-What two factors count for 65% of your FICO score? - -Payment history and outstanding
debts
-Which company has developed the MOST commonly used credit score to evaluate an
individual's credit? - -Fair Isaac Corporation
-You should try to achieve a FICO score of at least - -760
, -debt to credit limit ratio - -total balance due / credit limit
-canceling an old credit card with no balance due - -could hurt your credit score
-The treasury yield curve is normally - -upward sloping, with long term rates being higher
than short term rates.
-Having mortgage debt is generally considered better than - -having credit card debt.
-It is legal for an employer to review your credit report as part of - -the application
process.
-In general, applying for and receiving new credit cards will tend to - -decrease your FICO
score.
-Assume that your parents have more liabilities than assets as a result of a $100,000 of
credit card debt. In the event of their death, the children will - -NOT inherit the credit card
debt.
-Interest rates on 30 year fixed rate mortgages tend to follow or correlate with: - -The 10
year treasury note rate
-Interest rates paid by corporations and individual are normally derived from the current:
- -The treasury yield curve
-At a given interest rate, extending the term of your auto loan from 36 months to 60
months will: - -Decrease your payment and increase the amount of interest paid over the
loan
-If we experience inflation, the Federal Reserve would likely ________ interest rates. - -
increase
-Which is NOT a major credit monitoring company? - -Transpacific
-A flat or inverted yield curve - -often signals a recession.
-You should never shop for a car based on a budgeted payment, - -but instead look at the
overall cost of the vehicle.
-Retailers commonly offer new items at significantly higher prices, - -then plan to market
the goods down later to ultimately achieve the desired gross margin goal.
-Which of the following would provide the most objective information about a product? - -
A food product ingredient label.
SOLUTIONS
Employer benefits can be worth up to ___ of your base salary - -50%
-Generally the two main employer benefits with the highest value are: - -Retirement
Health Plans
-The health plans that offers the most choice in doctors and has the highest cost - -PPO
-Which of the following health plans generally requires that you first see your primary care
physician and remain within a restricted network of doctors? - -HMO
-Employees without a pension plan should try to save at least _____ of their salary - -10-
15%
-Fidelity Investments recommends that individuals without pensions have about ___ times
their salary at age 67 in order to have a sufficient amount of money to retire.` - -10
-Fidelity Investments recommends that individuals without pensions have about ___ times
their salary at age 30 in order to have a sufficient amount of money to retire. - -1
-At what age will you become eligible for Medicare? - -65
-At what age are you eligible for early Social Security? - -62 and the amount received is a
discounted benefit compared to the full retirement benefit
-Which health plan has a low cost but high deductible? - -HDHP
-The rules for flexible spending accounts generally require that employees use the money
within - -the current year or lose unused savings.
-When you leave your job, you should always rollover your - -401-K assets to a self
directed rollover IRA.
-Between 1990 and 2010, the average US savings rate was around - -5%
-What two factors count for 65% of your FICO score? - -Payment history and outstanding
debts
-Which company has developed the MOST commonly used credit score to evaluate an
individual's credit? - -Fair Isaac Corporation
-You should try to achieve a FICO score of at least - -760
, -debt to credit limit ratio - -total balance due / credit limit
-canceling an old credit card with no balance due - -could hurt your credit score
-The treasury yield curve is normally - -upward sloping, with long term rates being higher
than short term rates.
-Having mortgage debt is generally considered better than - -having credit card debt.
-It is legal for an employer to review your credit report as part of - -the application
process.
-In general, applying for and receiving new credit cards will tend to - -decrease your FICO
score.
-Assume that your parents have more liabilities than assets as a result of a $100,000 of
credit card debt. In the event of their death, the children will - -NOT inherit the credit card
debt.
-Interest rates on 30 year fixed rate mortgages tend to follow or correlate with: - -The 10
year treasury note rate
-Interest rates paid by corporations and individual are normally derived from the current:
- -The treasury yield curve
-At a given interest rate, extending the term of your auto loan from 36 months to 60
months will: - -Decrease your payment and increase the amount of interest paid over the
loan
-If we experience inflation, the Federal Reserve would likely ________ interest rates. - -
increase
-Which is NOT a major credit monitoring company? - -Transpacific
-A flat or inverted yield curve - -often signals a recession.
-You should never shop for a car based on a budgeted payment, - -but instead look at the
overall cost of the vehicle.
-Retailers commonly offer new items at significantly higher prices, - -then plan to market
the goods down later to ultimately achieve the desired gross margin goal.
-Which of the following would provide the most objective information about a product? - -
A food product ingredient label.
