Consumer Skills Quiz

Which forms of payment is linked to a bank account which limits the amount of money you can spend to balance in your account? - Cash & credit cards - Debit card & credit cards - Credit cards & checks - Checks & debit cards

Checks & debit cards

Which payment option can offer additional security like fraud protection? Debit Card Credit Card Cash Check

credit card

Which of the following is NOT an advantage of owning a car? - Drive unlimited number of miles - Smaller down and monthly payments than leasing a car - Yours to keep and sell when you wish - Flexibility to be able to customize it

- Smaller down and monthly payments than leasing a car

How is an advertisement different from a comment from a regular consumer? - It isn't any different. - The advertisement may have been posted by the seller. - The advertisement is likely one-sided. - The advertisement is made by an influencer who gets paid.

- The advertisement is likely one-sided.

Which of the following is NOT be a warning sign of a scam when buying a car or other big purchases? - Excessive fees - Being forced into warranties - A price that fits comfortably in your budget - Add-ons that seem too good to be true

- A price that fits comfortably in your budget

How does a consumer know whether a purchase may be a good deal? - A large percentage of positive customer ratings offer detailed explanations. - The item has the most features compared to other similar items. - The price is the most expensive for that type of item. - Both A and B

- Both A and B

Why is figuring out the unit price of something useful when shopping? - It helps you check to see if the price is correct. - It helps you determine the best deal. - It determines if a coupon is still usable. - It helps you locate items in the store.

- It helps you determine the best deal.

Which fact supports the idea that renting is a good option for living in a place for a short period of time? - Renting requires a large down payment. - Leases are generally for a month or a year. - Landlords take care of most maintenance. - Mortgages are usually for 15 or 30 years.

- Landlords take care of most maintenance.

What can help you meet your budget while shopping for important items? - Buying the item with the best features. - Making a list of your wants to meet your needs. - Prioritizing features to meet your needs. - Following recommendations for important features from social media influencers.

- Prioritizing features to meet your needs.

Which of the following is NOT a useful strategy when making an informed purchase? - Calculate the unit price of the product. - Purchase a product based on a social media influencer. - Compare your option to similar products. - Read the online reviews of the product and ask trusted friends who use it.

- Purchase a product based on a social media influencer.

Consumer Protection Responsibilities at the Federal Reserve

- The consumer compliance function of the Federal Reserve System writes consumer protection regulations for the financial industry. It enforces consumer protection and civil rights laws and regulations at the banks the Federal Reserve System supervises. - The Community Affairs function of the Federal Reserve promotes fair and impartial access to credit. - The Federal Reserve System also supports consumer protection by providing a variety of information and educational resources.

How is a post from a social media influencer different than a comment from a regular consumer? - The influencer is paid to post the product. - The post by the influencer is likely one-sided. - The post by the influencer may have been posted by the seller. - It isn't any different.

- The influencer is paid to post the product.

What is the best reason for why someone would want to lease a house instead of buy one? - They want to avoid rent increases and dealing with a landlord. - They want full responsibility of all repairs. - They want to be able to hopefully make money when they sell the place. - They are planning on living there for a short period of time.

- They are planning on living there for a short period of time.

When you are deciding what to buy, you should not... - compare the unit price of similar items. - wait for sales to get the best price. - read reviews from unbiased sources. - assume that buying the cheapest item is the smartest choice.

- assume that buying the cheapest item is the smartest choice.

Smart Consumers Understand and Use

- consumer protection laws, such as those related to product recalls and product labeling - government agencies responsible for enforcing consumer protection laws - private groups that work for consumer protection

When comparison shopping, all of these hint at a good deal EXCEPT_____________________. - there are more positive customer reviews than negative reviews. - the sale price is the cheapest available. - lower-priced models offer more features. - there is a coupon available for additional percentage off the price.

- lower-priced models offer more features.

Remedies Available to Consumers

- maintaining awareness of the rights and responsibilities of minors - contesting incorrect charges or bills - registering a consumer complaint - stop making purchases from sellers who disappoint

Responsibilities of Consumers

- verifying receipts and statements - contesting an incorrect bill - maintaining consumer vigilance - safeguarding against fraud

Leasing a car may be a better option than buying a car if... - you have enough money for a large down payment. - you travel great distances regularly. - you want the extended warranty and maintenance because you plan on having the car for a while. - you don't plan on having it for long and don't want to worry about regular maintenance.

- you don't plan on having it for long and don't want to worry about regular maintenance.

Better Business Bureau

a nonprofit organization that investigates, keeps records, and seeks to assist in the resolution of consumer complaints against business

Consumer Information Center

a private organization that can provide information about how to make a formal complaint

Making a good purchasing decision requires __________. - comparing the prices of similar items - reading reviews of the product - waiting until the product is on sale, if possible All of the above

all of the above

Which housing option gives you more freedom and more responsibility? Borrowing a house. Housesitting Leasing a house. Buying a house.

buying a house

Which payment option could have interest charged to you? Cash Debit Card Check Credit Card

credit card

Which payment option takes money out of your bank immediately? Debit Card Cash Check Credit Card

debit card

Small Claims Court

if a business does not cooperate, you have the right to sue. Small claim courts are available to resolve disputes up to the amount of $3,000.

Food and Drug Administration (FDA)

in charge of the safety of processed food, drugs, medical devices, and cosmetics.

Consumer Product Safety Commission

responsible for creating and enforcing standards of safety for products such as toys and clothing.

Federal Trade Commission

responsible for making sure that advertising and labels are not false or misleading

National Highway Traffic Safety Administration

sets highway safety standards and monitors safety-related motor vehicle defects

What are the rights of consumers?

to safety, to be informed, to choose, and to be heard

The price of a single item within a group of items is known as the ______________ of the item. group price item price unit price total price

unit price