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