UGBA 196 REVIEW EXAM STUDY QUESTIONS 2024.
1 out of every 6 - correct answer Americans receive a Social Security check each month
introductory rate - correct answer no rate increase for first 12 months of opening a new card, unless intro rate has ended
interest rate change - correct answer m...
1 out of every 6 - correct answer Americans receive a Social Security check each month
introductory rate - correct answer no rate increase for first 12 months of opening a new card, unless
intro rate has ended
interest rate change - correct answer must be notified 45 days in advance
defaulting on credit card - correct answer if you are more than 60 days late in paying minimum, interest
goes to default rate of 28-35%
for an account in good standing - correct answer interest rate increases can only be applied to new
charges
promotional rate periods minimum - correct answer 6 months
overdraft fees cannot be charged - correct answer unless you agree to accept them
what is on credit card statement - correct answer how many months it will take to pay your balance if
you only pay the minimum, and how much you will pay in principal and interest over that time. also how
much you need to pay to pay off the entire balance in 36 months.
activation fees, annual fees cannot exceed what amount in first year - correct answer 25% of the credit
limit. after first year, no limit.
can credit issuers raise interest rates on prior charges? - correct answer not on basis of current changes
in credit report/score
,payments in excess of the minimum... - correct answer must first be applied to the balance with the
highest interest rate
how much notice do customers get before their account is closed? - correct answer 30 days
max credit card fee unless one of your last six payments was late? - correct answer $25, then $35
late payment fee cannot exceed... - correct answer minimum payment
can credit card companies charge inactivity fees? - correct answer no
the deduction on federal return for state and local taxes? - correct answer up to 10,000
40% - correct answer percentage of children born out of wedlock
15 trillion dollars - correct answer amount of student loan debt, which exceeds credit card debt
25% - correct answer percent of the population that is obese
"millionaire" - correct answer financially independent, living the life they want to lead, and able to take
care of themselves without financial help from government sources
longevity - correct answer retirement is not the issue, it is longevity: do not outlive your money
4.9% - correct answer percentage of households that have a net worth of at least $1 million
what is wealth? - correct answer lifestyle!
$400,000+ - correct answer what the top 1% of households earn, and pay 40% of income taxes
, $160,000+ - correct answer what the top 5% of households earn, and pay 60% of income taxes
$113,000+ - correct answer what the top 10% of households earn, and pay 70% of income taxes
the bottom 50% of households - correct answer pay less than 3% of income taxes
47% of households - correct answer pay no income taxes
bottom 10% of households - correct answer receives checks from the government
what is biggest tax burden? - correct answer most people pay more in Social Security and Medicare taxes
than federal income taxes
burden of saving and investing for retirement and health care - correct answer is shifting from employer
to employee
qualities of millionaires - correct answer do not earn over $100,000/year. Over 50% are self-employed.
Only about 10% are highly paid executives. 80% became millionaires in one generation.
cornerstone of wealth? - correct answer being frugal, not cheap but value oriented
Good Debt - correct answer - education
- car
- mortgage
- starting a well thought out business
Bad debt - correct answer - borrowing money to support a lifestyle beyond one's means
- shopping to feel good on a bad day
- borrowing more than you can repay
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