Unit 1 Post Test: Consumer Economics and Financial Services

If research reveals that a company has a large number of unresolved complaints and a poor business rating, which external source did you most likely use during this research? A. blogs B. Better Business Bureau C. social media D. local chamber of commerce E. Mint Global

Better Business Bureau

Which Act outlines regulations to control smoke and other forms of pollution from various sources, whether stationary or in motion? The ______ outlines regulations to control air emissions from various sources, whether stationary or in motion.

Clean Air Act

Match the service providers to the functions performed by them.

Commercial Banks-provide automatic payment services, accept tax return refunds, and provide online banking Asset Management Firm-invest people's funds in securities

Complete the statement with the correct words. The ________ was established in 2010 as a result of the Dodd-Frank Act.

Consumer Financial Protection Bureau

Identify the items as consumer programs or consumer information sources.

Consumer Programs-state consumer protection offices and regulation offices for insurance Consumer Information Programs-local chambers of commerce and consumer reports

Read about Wanda's complaint to the FDIC. What action did the regulator most likely take in this case? The FDIC found out that a company misreported information to a credit scoring company about Wanda. Wanda contacted the company and asked them to fix the problem. The company refused to talk about it and referred her back to the credit company. The FDIC declares the company has violated the ________.

Fair Credit Reporting Act

Scarlett is unable to repay her loan on time due to some personal problems. She informs the financial institution and asks for some more time to repay the loan. However, the financial institution sends its agents to Scarlett's office. These agents insult her in public. Which law has the financial institution violated? A. Fair Credit Reporting Act B. Credit Card Accountability, Responsibility and Disclosure Act C. Fair Debt Collection Practices Act D. Identity Theft and Assumption Deterrence Act

Fair Debt Collection Practices Act

Which sector dominates developed economies such as the United States? In developed economies such as the United States, the __________ sector dominates the economy. Examples include legal firms,_________, and so on.

First blank-consumer services Second blank-hospitals

Select the terms that best fit the descriptions. There is a new fashion __________ in Hollywood. Women are wearing ripped leggings paired with extra-large sweaters. This style will drive consumer ________ for these products.

First blank-trend Second blank-demand

A bank employee shared a customer's financial information with other businesses without first informing the customer. What law did the employee break? A. Fair Credit Reporting Act B. Community Reinvestment Act C. Federal Deposit Insurance Act D. Fair and Accurate Credit Transactions Act E. Gramm Leach Bliley Act

Gramm Leach Bliley Act

Andrew was in a serious car accident and was immediately rushed to hospital. After a few months, he recovered his health and received minimal bills from the hospital. What type of insurance policy did Andrew have? A. property B. casualty C. health D. life E. dental

Health

Why is it important to carefully read and understand a financial institution's policies when opening a savings account? A. It helps you calculate how much money you can have in your account. B. It helps you understand how money transfers work. C. It helps you identify any hidden fees or penalties associated with withdrawals and transfers. D. It helps you determine potential investment tools for retirement plans. E. It helps you determine the maturity date associated with your basic savings account.

It helps you identify any hidden fees or penalties associated with withdrawals and transfers.

Which sentences highlight a unilateral contract? Monique goes to a supermarket and picks up a shampoo. She then goes to the counter and pays for the shampoo. John offers a ride back home to Jack in exchange for his favorite music DVD for a day. Jack then gives John the DVD he wanted. Harriet and Lauren sign a written contract for selling a house.

John offers a ride back home to Jack in exchange for his favorite music DVD for a day. Jack then gives John the DVD he wanted.

Andrea lost her job as an accountant because her company gave the contract for keeping accounts to a firm in Asia. The company did so to reduce the costs, as it could find cheap labor in the Asian countries. Andrea lost her job due to which type of economic activity? A. recession B. inflation C. outsourcing D. depression E. deflation

Outsourcing

Which professional's advice is Peter seeking? Peter wants to buy office space for his new business. However, he is not sure if the current market is suitable for buying property. Hence, he consults his _________ agent for advice.

Real Estate

Recently, it was observed that people have started saving more rather than spending. This has impacted the demand for luxury goods and services. The decline in the demand led to unemployment in the related sectors. What can be a primary solution to reduce the unemployment levels in the country? A. increase the interest rates B. impose fine for savings C. force industries to rehire employees D. reduce the interest rates E. import goods and services

Reduce the interest rates

Which certificate is the lowest level certification that a personal finance manager requires to sell mutual funds, trusts, and variable annuities? A. series 2 B. series 6 C. series 5 D. series 7 E. series 8

Series 6

Beth wants to become a financial services sales agent. However, none of the companies are willing to hire her. Which of the following reasons could be the reason behind their decision? A. She does not have a sociology degree. B. She does not have a finance degree. C. She is not a CPA. D. She has a high school diploma. E. She does not have a state license.

She does not have a finance degree.

Which Act prevents monopolies and conspiracies from fixing prices, fixing bids, or dividing a market between competitors? The _______ Act prevents monopolies and conspiracies from fixing prices, fixing bids, or dividing a market between competitors.

Sherman

Why is it important to look at external sources of information when exploring product and service information? A. They help you learn about examples of company product claims. B. They help you find unbiased information about the product's actual performance. C. They help you learn more about the product's competition. D. They help you find out where to purchase the product. E. They help you by telling you which product is right for you.

They help you find unbiased information about the product's actual performance.

Which is a man-made resource? A. land B. crude oil C. tools D. entrepreneurship E. biomass

Tools

Martha realizes that the microwave she bought is faulty after a month of purchase. The manufacturer of the microwave asks Martha to pay the repair expenses as the fault was with a part that was out of warranty. Martha was unaware of this warranty condition. What should Martha do to resolve her grievance? A. pay for the repair B. contact the Food and Drug Administration C. approach the Federal Trade Commission D. buy a new microwave E. recycle the microwave responsibly

approach the Federal Trade Commission

Match each type of financial institution with its correct description.

building society-is owned by its members and provides banking services trust company-acts as a fiduciary and handles custodial asset arrangements asset management firm-invests people's funds in financial assets stock brokerage firm-trades securities and makes money from commissions

Match the correct economic terms to their descriptions.

fiscal policy-Federal government's way to influence the economy through taxes monetary policy-Federal reserve's tool to influence the money supply in the economy factor market-A market where firms buy services related to production product market-A market where finished goods and services are traded

Match each example to the type of media the company used to reach the consumer.

popup ad-A person surfing the Internet keeps having to close windows displaying ads. click-thru website ad-A person clicks a sportswear ad, and then clicks on the newest shoes link. The activity is tracked. social media-An online post about the president wearing a particular brand of sportswear goes viral.