29384756

usually quite high

Interest rates on credit card debt are

False

Prior to 1900, the federal government was not involved in consumer protection

True

Probably the best way to protect yourself from products that are defective or dangerous is to use common sense.

Consumer Reports

Which of these is a monthly magazine published by Consumers Union that contains information about many goods and services?

borrowing $5,000 from a bank to buy a used car

Which of these is an example of a consumer loan?

It helps you understand how you spend your income.

Which of these is the most important reason to create a budget worksheet?

There are too many transactions.

Why doesn't the federal government protect consumers in every transaction?

False

A budget is a useful tool that can help you achieve your life goals even if you don't keep it up to date.

True

A consumer's credit rating is the measure of this person's creditworthiness.

Jeff should have made and followed a financial plan that would have allowed him to save and avoid accumulating a large debt. He only takes home $1,400 a month. He must pay $850 of that to cover his current debt. That only leaves $550 for him to rent a place to live and pay his other bills. Jeff needs to think about selling his car and motorcycle to pay off his credit-card debt. He needs to make and follow a reasonable and responsible financial plan.

Jeff started his first full-time job after he graduated from high school last year. He earns about $350 a week after he pays his taxes. In the past year, Jeff bought a car and motorcycle on credit for a total of $22,000. He has taken out six credit cards and has accumulated a balance of about $7,000 on them. His current monthly payments total $850 without reducing his credit-card debt. Jeff is still living at home with his parents. They have told him that they are moving to a one-bedroom apartment and that he must find a place of his own in the next two months. What should Jeff have done last year to avoid this situation? What can he do now to solve his problem?

True

Many products are so complex that most consumers cannot really understand them.

False

Most American consumers never use credit to purchase goods or services.

True

Most home and car loans are examples of secured loans.

True

People allocate scarce resources when they make consumer choices.

False

People who are wealthy do not face the problem of scarcity.

True

The Food and Drug Administration (FDA) sets standards for all foods and drugs produced or marketed in the United States.

contact the police

Which of the following should you do if you become a victim of identity theft?

Todd and Amanda need to create a financial plan for their future. They should construct budgets for each of them that include regular saving and limited use of credit. They should avoid accumulating debt and make sure that they make all their payments on time. This will create a positive credit history that will help them obtain loans for major purchases they want to make in the future.

Todd and Amanda want to be married after they graduate from college in several years. They know that having a good credit rating will be important to their future. Describe steps they can take now that will help them obtain credit in the future to help pay for their education and eventually to buy a home of their own.

contact the lender and explain the situation

What should you do if you find you are not able to make a payment on time?

saving to pay for a trip to Florida next winter

Which of the following is a short-term financial goal?

cooking a hamburger that will be sold at a McDonald's restaurant

Which of the following is not an act of consumption?

cooperation

Which of the following is not one of the three Cs of credit?