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GEB 3006 EXAM 3 Financial Literacy Questions with Correct Answer1.
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GEB 3006 EXAM 3 Financial Literacy Questions with Correct Answer1.
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GEB 3006 EXAM 3 Financial Literacy Questions withCorrect Answers
What two factors count for 65% of your FICO score?
a) Income and payment history
b) Employment history and outstanding debts
c) Payment history and outstanding debts
d) Income and outstanding debts Correct Answer-c) Payment history and
outstanding debts
Which company has developed the MOST commonly used credit score
to evaluate an individual's credit?
a) Experian
b) Transunion
c) Fair Isaac Corporation
d) Equifax Correct Answer-c) Fair Isaac Corporation
You should try to achieve a FICO score of at least ________ in order to
receive a top credit rating.
a) 840
b) 640
c) 760
,d) 940 Correct Answer-c) 760
What is the debt to credit limit ratio for the following individual?
Visa CardMaster CardCredit Limit$10,000$20,000Balance
Due$2,000$19,000Available Credit$8,000$1,000
a) 30%, and decreasing this ratio will help the credit score
b) 70%, and decreasing this ratio will help the credit score
c) 70%, and increasing this ratio will help the credit score
d) 30%, and increasing this ratio will help the credit score. Correct
Answer-b) 70%, and decreasing this ratio will help the credit score
True or False?
It is possible that canceling an old credit card with no balance due could
hurt your credit score. Correct Answer-True
True or False?
If an individual gets several quotes on a new mortgage within a two
week period, it should not immediately impact their credit score. The
credit score may later be impacted by the size of the mortgage and
related monthly payments. Correct Answer-True
,A married couple is applying for a mortgage. One spouse has a low
FICO score and one has a high FICO score. What is their best strategy
for getting the lowest interest rate possible?
a) Apply in both spouses names since the banks will use the higher score
in evaluating the mortgage application.
b) Apply in the name of the spouse with the highest score. Correct
Answer-b) Apply in the name of the spouse with the highest score.
Which of the following statements is true?
a) You Answered The treasury yield curve is normally downward
sloping, with long term rates being higher than short term rates.
b) The treasury yield curve is normally upward sloping, with long term
rates being higher than short term rates.
c) The treasury yield curve is normally downward sloping, with short
term rates being higher than long term rates.
d) The treasury yield curve is normally upward sloping, with short term
rates being higher than long term rates. Correct Answer-b) The treasury
yield curve is normally upward sloping, with long term rates being
higher than short term rates.
, True or False?
Having mortgage debt is generally considered better than having credit
card debt. Correct Answer-True
True or False?
It is illegal for an employer to review your credit report as part of the
application process. Correct Answer-False
True or False?
Insurance companies are allowed to review and consider your credit
score before quoting a premium. Correct Answer-True
True or False?
Assume you have three credit cards, each having a balance due of $500
for a total of $1,500. Each card has a different interest rate ranging from
12% to 20%. The minimum payment on each card is $10. If the
minimum payment is not made, there is a $50 penalty.
If you only have $500 to pay on your credit cards this month, the best
way to minimize your interest cost is to pay an equal amount of money
on each card. Correct Answer-False
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