UGBA 135 FINAL QUESTIONS AND ANSWERS

What is the biggest problem facing us in the future? - Answer- Longevity, not retirement Where is the burden of saving and investing for retirement and health care shifting? - Answer- From employer to employee What percentage of households have income of more than $113,000? - Answer- 10% What percentage of households earn $160,000? - Answer- 5% What is a common trait of millionaires? - Answer- The ability to communicate and sell their ideas Where can the lender not take out money from if you don't pay them back? - Answer- Your bank account or your assets (excepting if your credit card is the same bank as your checking or savings account) What is a credit hold? - Answer- When a hotel, car dealer, etc. put extra charges on your card to cover and damages or other purchases you make, and is released in a few days after What is the average credit card monthly balance of an American household? - Answer- Over $9,000 Why do merchants like debit cards over credit cards? - Answer- The interchange fees for debit cards are about one-third of the fees for credit cards Why do banks like debit cards over credit cards? - Answer- The money is in the account so they take no risk on you What is the difference in fraud reimbursements between credit and debit? - Answer- Credit is reimbursed in a few days; Debit can take up to 2 - 3 months What is a charge card? - Answer- A retailer card that can only be used at that store, often coming with discounts but high rates of interest