Personal Finance
What does an amortization table show?
the principle and interest being paid on a loan
Which situation would most likely use disability insurance?
A person loses their job because of an injury or illness.
Which of these protects customers who purchase defective products?
A warranty
With which type of account is a minimum balance fee associated?
Checking account
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.
What do banks pay to their savings account customers?
Interest
What makes a credit card more convenient than a debit card?
It can be used to buy things without immediate payment.
Which would cause a boycott to fail?
Most consumers didn't stay away from the company.
Which of these is made easier by maintaining a good credit history?
Obtain a loan
Why do consumers have influence over politicians?
Politicians rely on consumers' votes to keep them in office.
Which step in the budget-making process is the best way to offset an unexpected financial obligation?
Reduce expenses in flexible categories.
Why does a savings account make a better investment than a checking account?
Savings accounts earn interest.
Which statement describes a situation in which people have to pay a deductible?
Their insurance policy only covers part of a medical expense.
Which statement describes one of the opportunity costs of attending college?
Time spent on schoolwork takes away from the chance to earn money at a job.
Which of these is an example of luxury spending?
Travel
Which item helps people avoid debt by keeping expenses below income?
a personal budget
What kind of a credit card can customers with a bad credit history get?
one that's secured by collateral
What is one of the primary concerns of socially responsible consumers?
sustainability
What's the difference between a brand-name and a generic product?
the company that sells the product
What does a lease outline?
the obligations of renters and landlords
What is the correct definition of cash advance?
the use of a credit card to take money from an ATM
Why do some auto insurance customers want medical coverage for their policies?
to avoid having to pay for hospital bills resulting from an accident they cause
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
Why do economic decisions vary from person to person even under the same circumstances?
Costs and benefits are subjective.
What allows someone to buy a car that costs more than he or she can afford?
Car loan
