UGBA 135 FINAL 2025/2026 Exam
Questions and Answers 100%
Guaranteed Success | Already Rated A+
What is "good debt"? - 🧠 ANSWER ✔✔Taking out loans in order to pay off
a car, a mortgage or an education or starting a business
What is considered "bad debt"? - 🧠 ANSWER ✔✔- Borrowing money to
support a lifestyle of living beyond one's means
What is the definition of a Modern Day Millionaire? - 🧠 ANSWER ✔✔-
Financially independent, no government assistance, living the life they want
to lead
What is a credit card? - 🧠 ANSWER ✔✔- An unsecured line of credit
- based on good faith and credit history
- this is a risk for a bank
,What is a debit card? - 🧠 ANSWER ✔✔- A secured line of credit
- the bank is taking no risk in issuing one of these
What is a charge card? - 🧠 ANSWER ✔✔- Issued by a retailer allowing you
to charge purchases made only with their store
- store credit usually carries high rates or interest as high as 20 - 30% on
unpaid balances
What is prepaid card? - 🧠 ANSWER ✔✔- Offered by banks and non- banks
- not linked to one's bank account
- entails high fees and interest
What is a payday loan? - 🧠 ANSWER ✔✔- A high interest short term cash
loan that is intended to be repaid by future paychecks
What is installment debt? - 🧠 ANSWER ✔✔- Money that is borrowed to
purchase large items such as a car or furniture paid over time
- borrower purchases the item and pays for it at regular intervals until the
loan is paid back in full
,What is a deferred interest plan - 🧠 ANSWER ✔✔A plan that enables a
consumer to purchase big - ticket items paying no interest or a low "teaser"
rate of interest over a promotional period.
What are Gift Cards? - 🧠 ANSWER ✔✔- Stored value cards, usually for use
at a specific retailer or merchant
What is a cashier's check? - 🧠 ANSWER ✔✔- A check purchased by you
from a bank, payable to a third party designated by you.
What is a certified Check? - 🧠 ANSWER ✔✔- A personal check the bank
guarantees as being supported by funds in your account
What is credit? - 🧠 ANSWER ✔✔The amount of money a lender is willing to
lend subject to repayment terms and conditions such as interest, fees and
penalties
What is Debt? - 🧠 ANSWER ✔✔- The state of owing something such as
money
What is a Debtor (or borrower)? - 🧠 ANSWER ✔✔- A person or entity with
debt which owes or has the obligations to repay the debt
COPYRIGHT©NINJANERD 2025/2026. YEAR PUBLISHED 2025. COMPANY REGISTRATION NUMBER: 619652435. TERMS OF USE. PRIVACY
STATEMENT. ALL RIGHTS RESERVED
3
, What is principle? - 🧠 ANSWER ✔✔- The amount of money that is
borrowed or loaned
What is interest - 🧠 ANSWER ✔✔THE COST OF MONEY
- paid by the borrower to obtain the used of the principal or received by the
lender for providing the principal - expressed as APR (annual percentage
rate)
What is the Fixed Rate of Interest? - 🧠 ANSWER ✔✔- A loan with an
interest rate that will remain at a predetermined or "fixed" rate for the life or
term of the loan - the rate does not fluctuate.
What is an adjustable Rate of interest? - 🧠 ANSWER ✔✔- A loan where the
rate of interest is not fixed but may change at various specified times
- most commonly foun din homes where the interest rate is established for
a few years and is then changed to a new rate for the balance of the loan
What is the "go - to" rate? - 🧠 ANSWER ✔✔- The interest rate you are
charged on upaid credit card balances, in addition to the variable rate to
determine the total rate of interest on your account
Questions and Answers 100%
Guaranteed Success | Already Rated A+
What is "good debt"? - 🧠 ANSWER ✔✔Taking out loans in order to pay off
a car, a mortgage or an education or starting a business
What is considered "bad debt"? - 🧠 ANSWER ✔✔- Borrowing money to
support a lifestyle of living beyond one's means
What is the definition of a Modern Day Millionaire? - 🧠 ANSWER ✔✔-
Financially independent, no government assistance, living the life they want
to lead
What is a credit card? - 🧠 ANSWER ✔✔- An unsecured line of credit
- based on good faith and credit history
- this is a risk for a bank
,What is a debit card? - 🧠 ANSWER ✔✔- A secured line of credit
- the bank is taking no risk in issuing one of these
What is a charge card? - 🧠 ANSWER ✔✔- Issued by a retailer allowing you
to charge purchases made only with their store
- store credit usually carries high rates or interest as high as 20 - 30% on
unpaid balances
What is prepaid card? - 🧠 ANSWER ✔✔- Offered by banks and non- banks
- not linked to one's bank account
- entails high fees and interest
What is a payday loan? - 🧠 ANSWER ✔✔- A high interest short term cash
loan that is intended to be repaid by future paychecks
What is installment debt? - 🧠 ANSWER ✔✔- Money that is borrowed to
purchase large items such as a car or furniture paid over time
- borrower purchases the item and pays for it at regular intervals until the
loan is paid back in full
,What is a deferred interest plan - 🧠 ANSWER ✔✔A plan that enables a
consumer to purchase big - ticket items paying no interest or a low "teaser"
rate of interest over a promotional period.
What are Gift Cards? - 🧠 ANSWER ✔✔- Stored value cards, usually for use
at a specific retailer or merchant
What is a cashier's check? - 🧠 ANSWER ✔✔- A check purchased by you
from a bank, payable to a third party designated by you.
What is a certified Check? - 🧠 ANSWER ✔✔- A personal check the bank
guarantees as being supported by funds in your account
What is credit? - 🧠 ANSWER ✔✔The amount of money a lender is willing to
lend subject to repayment terms and conditions such as interest, fees and
penalties
What is Debt? - 🧠 ANSWER ✔✔- The state of owing something such as
money
What is a Debtor (or borrower)? - 🧠 ANSWER ✔✔- A person or entity with
debt which owes or has the obligations to repay the debt
COPYRIGHT©NINJANERD 2025/2026. YEAR PUBLISHED 2025. COMPANY REGISTRATION NUMBER: 619652435. TERMS OF USE. PRIVACY
STATEMENT. ALL RIGHTS RESERVED
3
, What is principle? - 🧠 ANSWER ✔✔- The amount of money that is
borrowed or loaned
What is interest - 🧠 ANSWER ✔✔THE COST OF MONEY
- paid by the borrower to obtain the used of the principal or received by the
lender for providing the principal - expressed as APR (annual percentage
rate)
What is the Fixed Rate of Interest? - 🧠 ANSWER ✔✔- A loan with an
interest rate that will remain at a predetermined or "fixed" rate for the life or
term of the loan - the rate does not fluctuate.
What is an adjustable Rate of interest? - 🧠 ANSWER ✔✔- A loan where the
rate of interest is not fixed but may change at various specified times
- most commonly foun din homes where the interest rate is established for
a few years and is then changed to a new rate for the balance of the loan
What is the "go - to" rate? - 🧠 ANSWER ✔✔- The interest rate you are
charged on upaid credit card balances, in addition to the variable rate to
determine the total rate of interest on your account
