7.11 Unit Test: Personal Finance - Part 1
Which of these statements describes the costs and benefits of taking a college loan?
College loans help increase future earning power but result in a long-term commitment to monthly payments.
Why do people reach different decisions using cost-benefit analysis even under the same conditions?
Costs and benefits are both subjective.
What does it take for a consumer boycott to be successful?
The boycott must significantly reduce the target company's profits.
Why does attending college involve an opportunity cost?
The money spent on tuition cannot be invested in another way.
Which of these statements describes a situation in which people have to pay a deductible?
Their insurance policy only covers part of a medical expense.
What makes a checking account more convenient than a savings account?
You can spend your money without having to withdraw cash first.
In which situation would renter's insurance be useful?
Your personal possessions are stolen from your apartment.
Which of these can be used to protect consumers from unsafe products?
a recall
How can consumers get the government to pass laws preventing companies from engaging in offensive behaviors?
by lobbying
With which type of account is a minimum balance fee associated?
checking account
Which of these makes it easier for a person to get a credit card?
good credit history
What do banks pay with some of the profits they make by loaning out the money in their customers' savings accounts?
interest on savings accounts
What kind of a credit card can customers with a bad credit history get?
one that's secured by collateral
What kind of customer would want collision coverage for his or her auto insurance?
someone concerned about causing damage to his or her own car
Using a budget is a good way to what?
stay out of debt
What is one of the primary concerns of socially responsible consumers?
sustainability
What provides collateral to secure a car loan?
the car
What's the difference between a brand-name and a generic product?
the company that sells the product
What is the grace period on a credit card?
the number of days the customer can wait to pay for purchases without being charged interest
What do leases contain?
the obligations of renters and landlords
What does an amortization table show?
the principle and interest being paid on a loan
What is the purpose of a letter-writing campaign conducted by a group of consumers?
to get a company to voluntarily change its business practices
Which of these is an example of luxury spending?
travel
What makes a credit card more convenient than a debit card?
It can be used to buy things without immediate payment.
Which step in the budget-making process is the best way to offset an unexpected financial obligation?
Reduce expenses in flexible categories.
