Chapter 7 Quiz
Instead of getting excited about spending, it is hoped that you will get excited about what to a credit card, or a car loan, or your student loans, or eventually your mortgage?
Paying off
What should you do when making a purchase to ensure you aren't tempted into buying things you don't need?
Remove yourself from deal alerts
The mission of the this agency is to protect investors, maintain fair, orderly, and efficient markets, and to facilitate capital formation.
Securities and Exchange Commission
Unlike with a tangible product, what can you not do with a purchased service such as a bad haircut or a sloppy roof repair?
Simple return
These state agencies are a central clearinghouse for complaints and investigations regarding many frauds and scams and should be the first place to turn in many circumstances.
State Consumer Protection Services
Tax preparation software:
Still requires the tax payer to understand the tax system fairly well
A truly smart shopper realizes that sometimes it may pay to buy the larger size and throw a portion of an item out.
True
Eating properly, maintaining a healthy weight, exercising regularly, and generally leading a healthy lifestyle, reduces the risk of getting sick.
True
For items that are purchased infrequently and expected to last, it is often worth the extra money to get a better quality product.
True
Good personal status symbols are a fully established emergency fund, the elimination of any credit card debt, a paid-off mortgage, and a retirement account that is growing towards established financial goals.
True
In most instances, both mediation and arbitration are less costly and can lead to a quicker resolution than hiring what?
an attorney
Benjamin recently used small claims court to settle a dispute. Most likely, his dispute was
bankruptcy
A great way to save on purchases is to __________.
clip coupons, buy in bulk, comparison shop, buy by price per quantity
Logan makes $1,500 per month. He has $500 per month available after he pays his expenses. When he decided to buy his new TV for $750, he felt it was a reasonable price since it is only 50% of his income. Instead, he should have:
computed the cost as a percentage of his discretionary income
Nathaniel paid a local contractor to clean out his rain spouting. After the contractor left, he noticed a section of the spouting that the contractor missed. His first course of action should be to
contact the contractor
A great way to save on purchases is to always buy the economy size of the product.
false
An accountant is usually the least skilled of all tax professionals and usually is the most expensive.
false
Discount warehouses always save buyers money because bulk items are a good deal.
false
One great feature of tax preparation forms from the IRS is they provide the ability to accurately estimate next years tax liability.
false
Zachary really wanted to go on spring break with his friends. However, his rent, car payment, monthly student loan payment, and cellphone bill took up so much of his income that he did not have enough left over. In other words, his _________ too high
fixed expenses
When it comes to non-perishable items, almost everyone can save money by buying __________.
in bulk
Caleb had a good part-time job that paid $2,000 per month and over $1,800 in expenses every month. That means he only had $200 available in ________ income.
net
This term is a way to look at purchasing items by breaking down the cost in easily comparable quantities such as per ounce, per quart, or per unit.
price per quantity
It is easier than ever for most people to do their own ________.
taxes, goal setting, budgeting, investing
On average cars depreciate or lose about what percent of their value each year?
20%
What organization is dedicated to fostering honest and responsive relationships between businesses and consumers?
Better Business Bureau
If you want to save money or spend it on other things other than coffee, you can quickly save by doing what?
Brew your own coffee lol
What simple financial tool is all we need to figure out what bills must be paid and when, and how much money we have available to pay them?
Calculator
When deciding if you should pay someone else to do something for you, you should consider the following: how many hours would I have to work at my job to pay someone else, how difficult would it be to learn to do this myself, can a friend or someone else assist me instead of a professional, and what?
Can I do this myself?
A truly smart shopper, by buying price per quantity, realizes that sometimes it may still be what to buy the larger size and throw a portion of an item out?
Cheaper
Cormac purchased furniture from a local business with no payments for 12 months at 0% interest. Six months later, he was told he owed the original amount, plus interest and late fees. When he finally reported the company, he correctly reported them to the:
Consumer Financial Protection Bureau
Another great way to add value on purchases, especially in the grocery store, is to clip what?
Coupons
What organization is charged with promoting student achievement and also must administer the federal student loan program?
Department of Education (DoE)
One of the easiest categories to find extra money in someone's budget that they can control is:
Dining out
Fixed expenses, variable expenses, and what is vital to building a simple budget?
Discretionary Income (spending money)
What highlights all the little purchases, that when combined, really add up to large dollar amounts over time?
Expenses
Discount warehouses always save buyers money because bulk items are a good deal
False
Just as it is a good idea to receive the best value for large infrequently purchased items, it is a good idea to receive the best value for everyday purchases.
False
Developing and overseeing regulations aimed at maintaining a fair marketplace is just one responsibility of what agency?
Federal Trade Commission (FTC)
What expenses include rent, car payment, car insurance, student loan payment, and anything else that is obligated or under contract where the payment is the same each month?
Fixed Expenses
The SEC is concerned primarily with promoting the disclosure of important market-related information, maintaining fair dealing, and protecting against what?
Fraud
Lawyers need to use the documentation that you keep related to a case, including receipts, names of the employees you spoke with, and names of any witnesses. For this reason and many others, it is important to what?
Keep good records
When you go grocery and clothes shopping, what should you do to ensure you leave with only what you intended to purchase and nothing else?
Make a list and check it twice
After you have researched a product or service, compared your options, and found the best value that aligns with your needs, only then should you what?
Make the purchase
How many components are there to your budget?
three
For most people, living on less sounds painful but when done right it doesn't have to be.
true
Just as it is a good idea to receive the best price for large infrequently purchased items, it is a good idea to receive the best price for everyday purchases.
true
Just as it is a good idea to receive the best value for large infrequently purchased items, it is a good idea to receive the best value for everyday purchases.
true
It is a good idea to get the best possible __________ while spending money.
value, worth, price, cost
What is a written guarantee issued by the manufacturer or service provider with the promise to repair or replace the purchase within a specified time period?
warranty