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Saving and Making Financial Decisions — Test Answers

24 verified answers
1
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What should consumers consider when it comes to the price of this product?

A
It makes the full cost appears lower than it is.
B
It explains why this price is a good deal.
C
It takes into account maintenance costs.
D
It includes shipping and handling costs.
2
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What is the tax rate for the community in which this purchase was made?

A
8 point 2 5 percent
B
7 point 7 5 percent
C
7 point 5 percent
D
6 point 5 percent
3

Which statement best explains how this advertisement attempts to influence consumer spending?

A
It has great public awareness.
B
It has a recognizable logo.
C
It claims to be naturally delicious.
D
It is endorsed by celebrities.
4

The Ruiz family filed for Chapter 13 bankruptcy. Mr. Ruiz is employed and makes just enough money to pay the family’s living expenses. Mrs. Ruiz found a part-time job on the weekends. They have three minor children living at home. What impact will this family face after filing for bankruptcy?

A
Mr. and Mrs. Ruiz might face difficulties in getting new credit or loans.
B
Mrs. Ruiz's part-time job will cause the bankruptcy filing to be voided.
C
The Ruiz family will be legally prevented from seeking new employment.
D
Bankruptcy will immediately erase the family's pre-existing credit history.
5

What is the purpose of a credit score?

A
Your credit score helps to determine if you qualify for Chapter 7 bankruptcy.
B
Your credit score tells lenders how likely you are to make payments on time.
C
Your credit score is the number of loans and credit cards in your credit history.
D
Your credit score is the result of conducting the means test evaluation.
7

Which financing option has the highest overall costs?

A
installment
B
cash
C
credit card
D
rent to own
9

Alex delays saving for 15 years. What is the most likely outcome?

A
no impact
B
higher total savings
C
more employer match
D
less time for growth reduces total savings
10

Feeling overwhelmed with monthly bills, Lin got a second job to help pay her debt but has had difficulty writing a budget and still falls short each month. She currently rents her home, and she has credit card bills, student loans, and a car payment. What step should Lin take next?

A
Lin should contact a credit counselor to create a workable debt management plan.
B
Lin should take out a personal loan in order to pay her monthly expenses.
C
Lin should contact an attorney to discuss the possibility of filing for bankruptcy.
D
Lin should take the means test to see if she qualifies for Chapter 13 bankruptcy.
12

Which is an example of predatory lending?

A
A bank charges lenders additional hidden fees on a mortgage.
B
A bank offers higher interest rates on newly opened savings accounts.
C
A bank allows customers to transfer their credit card balances.
D
A bank waives a new account fee for direct deposit checking accounts.
13

When planning a budget, the biggest consideration should be the

A
the monthly savings amount.
B
the total income available to spend.
C
the total housing or rent payments.
D
the monthly transportation cost.
15

Haven follows a budget, pays her bills on time, and has a small balance in her savings. She was recently let go from her job. She has some medical procedures scheduled and bills which will be due soon. She finds herself stressing about her financial situation. What are some of her options?

A
She should cancel her medical treatment while looking for employment.
B
She should max out her credit cards while looking for employment.
C
She should seek advice from a credit counselor and cancel her medical treatment.
D
She should seek advice from a credit counselor while looking for employment.
16

What is the best retirement strategy?

A
avoid planning
B
delay saving
C
rely on one source
D
combine income sources, tax strategies, and consistent saving
18

The Hendersons are hosting a barbecue for five people and want to purchase enough chicken for everyone to have two pieces. Which option makes the most financial sense?

A
a 20-pack bag of chicken at $35
B
a 12-pack bag of chicken at $20
C
10 individual chicken breasts at $3 each
D
5 two-packs of chicken breasts at $5 each
20

Which statement best describes the difference between a checking account and a savings account?

A
Checking accounts allow customers to easily pay for goods and services, while savings accounts are used to hold money for longer periods of time.
B
Checking accounts are held only by businesses and savings accounts only by individuals.
C
Checking accounts require customers to go into a bank branch, while savings accounts are accessed by customers on their mobile phones or computers.
D
Checking accounts provide customers with interest, while savings accounts do not.
21

When depositors put money into a bank, what does the bank do with this money?

A
The bank sends the money to a central bank in Washington, DC.
B
The bank spends the money on new branches to get more depositors and borrowers.
C
The bank uses the money to make loans to borrowers and earn interest.
D
The bank locks the money in a vault and leaves it there until the depositors want it back.

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