UGBA 135 - Personal Finance Questions with complete solution 2023/2024

UGBA 135 - Personal Finance Questions with complete solution 2023/2024What is the definition of a millionaire? - correct answer Those who are financially independent, living the life they want to lead, and are able to take care of themselves without financial help from government sources for their entire adult lives. What should you do if you are a victim of credit card theft? - correct answer Credit card theft is when your credit card is missing or stolen. Contact the credit card issuer or bank immediately. Close the account immediately. Ask for a new card on a new account. If, after all this, you find a "lost" card in an old coat pocket or seat cushion, just destroy it so that it cannot be used. (Current law states your loss is limited to $50 if you contact the issuer within two days of discovery. Beyond two days of discovery, you may be liable for up to $500 in losses. Beyond 60 days after discovery, you may be liable for the full amount of charges.) What is an emergency fund? - correct answer An emergency fund or a security fund is a cash reserve specifically set aside for unexpected expenses or financial emergencies, such as illness, job loss, etc. You should have enough money in your security fund for at least 3 to 6 months' living expenses. What is the rule of 72? - correct answer The rule of 72 is used to estimate how long it will take for a sum of money to double at a given interest rate, assumin