Charis wants to decrease the risk of fraudulent use of her credit cards. Which strategy would be the most effective?

Signing the back of her card with her signature and "Please see picture ID"

Ed is buying a new phone online. What is the best tip he should consider to do so safely and maximize his satisfaction?

Review shipping and return policies in advance

Which of the following best describes the benefits of having insurance?

Insurance combined w/ emergncy savings provides sense of financial security

Which of the following is an act of identity theft?

Wrongfully acquiring and using someone's personal identification

Eric has chosen Amanda to be the beneficiary of his life insurance policy. What does this mean for Amanda?

Amanda will recive any proceeds if Eric dies

The equity that you build by making mortgage payments is:

the value of the home after the mortgage debt is subtracted

Using some1's driver's license, dbt card and crdt card. Which is NOT something an identity thief could realistically do?

Take a college admissions exam with their name

Sally is researching a new tablet and using a variety of sources. What is an example of an unbiased source?

A product review from an independent company

In which scenario below should renters insurance be considered?

Zach has rented an apartment in an urban area

T was in a car accident. To get her car fixed, her insurance co. is requiring her to pay the 1st $500 of repair bill bc:

Her policy's deductible is $500

The cost of using someone else's property

What is the difference between property and liability insurance?

prop ins pays for loss to insured & liability ins pays for loss to others

In which situation would an Auto Liability Insurance policy protect the policyholder?

PH backed into a car in a parking lot & damaged his car and the other car

Which is a general rule to minimize identity theft when dealing with credit reports?

Check each credit report at least once per year

Perry would like to purchase a new car. What should he consider first in the planned buying process?

Evaluate the opportunity cost and trade-offs to purchasing the car

Melissa needs a vehicle and is considering leasing one. This means:

She would be renting by making pmts over time, but title remains w/ leasor

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Part 3 Spending Unit

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Questions 33

Answers

1
Charis wants to decrease the risk of fraudulent use of her credit cards. Which strategy would be the most effective?
Using crdt cds for all purchases so she only needs to pay 1 bill each month
Carrying all credit cards in her wallet so they don't get lost
Signing the back of her card with her signature and "Please see picture ID"
Giving account numbers over the internet rather than over the phone
2
Chad rents an apartment, when he moved in he paid a fee to cover any potential damages that might occur. This is a
Down Payment
Amenitites
Security Deposit
Rental agreement
3
Maggie will need to pay $120 per month in order to purchase a health insurance policy. This monthly payment is known as:
The deductible
The premium
The moral hazard
The co-insurance
4
Ed is buying a new phone online. What is the best tip he should consider to do so safely and maximize his satisfaction?
Always use the seller offering the lowest price
Use a debit card
Review shipping and return policies in advance
Purchase a warranty
5
Which of the following best describes the benefits of having insurance?
The policy holder may become better off financially if an accident occurs
The policy hldr no risk bc all risk is transferred to insurance company
It is required by law to purchase insurancy so the benefits do not matter
Insurance combined w/ emergncy savings provides sense of financial security
6
Matt wants to guard his personal information. Which personal information is LEAST LIKELY to be used by scammers?
Driver's license numbers
Phone numbers
Credit Card numbers
Bank account numbers
7
Why is investing in product research an important part of the planned buying process?
Research enhances satisfaction
Research is too time consuming
Research is only necessary for big purchases
Research decreases satisfaction
8
Which of the following is an act of identity theft?
Having the same name as another person
Receiving permission to use a parent's credit card for school clothes
Wrongfully acquiring and using someone's personal identification
Taking the identity of another individual as inspiration for a costume
9
Eric has chosen Amanda to be the beneficiary of his life insurance policy. What does this mean for Amanda?
Amanda is required to serve as the executor of Eric's estate
Amanda will receive a commission for selling Eric his life insurance policy
Amanda will recive any proceeds if Eric dies
Amanda must pay the insurance premiums to keep the policy in effect
10
The equity that you build by making mortgage payments is:
the amount of money paid on the home at the time of purchase
purchasing a housing unit as rental property
a home loan where the real estate is collateral
the value of the home after the mortgage debt is subtracted
11
Using some1's driver's license, dbt card and crdt card. Which is NOT something an identity thief could realistically do?
Rent an apartment under their name
Make purchases with the credit card
Use their name during an arrest
Take a college admissions exam with their name
12
Ashley plans to do some of her Christmas shopping online. What is a safety tip to follow when she is shopping online?
Blackout the bank account numbers on the cc bill b4 returning it w/ payment
Use a credit card
Use a debit card
Shred all sales receipts as soon as the item purchased has been received
13
Shelby would like to reduce her food spending. Which factor would be least important to consider?
Her personal preferences
The skills she has acquired for preparing meals
The nutritional value of the foods she purchases
How much time she has available to prepare food
14
Sally is researching a new tablet and using a variety of sources. What is an example of an unbiased source?
Product review from a seller
A product review from an independent company
A product review that is five years old
Product review from an individual making money from the sale
15
What is NOT an example of a durable good?
Food
Clothing
Cell phone
Automobile
16
In which scenario below should renters insurance be considered?
Don and Denise are landlords for several rental properties
Zach has rented an apartment in an urban area
Steve and Teri have purchased a home in a rural area
Tim is renting basement of his parents home while he is repairing his home
17
Which expense WOULD NOT be considered part of the total transportation expenses?
Parking
Automobile Payment
Depreciation
Fuel
18
T was in a car accident. To get her car fixed, her insurance co. is requiring her to pay the 1st $500 of repair bill bc:
Her policy's deductible is $500
She will be reimbursed by the insurance company later
The cost of the repairs is higher than her policy covers
She did not call her agent and report the accident quick enough
19
Lisa recently moved into a new apartment with her friend Emma. Who is responsible for purchasing renter's insurance?
Lisa and Emma's parents
Renters insurance is not necessary
The property manager
Lisa and Emma
20
A rental agreement is often referred to as
Renters insurance
An amenity
A lease
A mortgage
21
Rent is defined as
The fee charged for performing property management tasks
An advance payment for costs beyond normal wear and tear
The cost of using someone else's property
The purchase price of a housing unit
22
It is recommended that life insurance be purchased when the:
individual reaches the ageof 50
individual gets their first job
individual has dependents
individual flies in an airplane
23
Ed borrowed money to buy a car w/o making a down pmnt & now he owes more than the car is worth. This situation is called
a hidden cost
being upside down on the loan
depreciation
leasing
24
What is the difference between property and liability insurance?
prop ins pays for loss to others & liability ins pays for loss to insured
Difference btwn prop and liab ins depends on the specific ins policy bought
Differenc btwn prop & liab ins depends on type of insurance (car, home etc)
prop ins pays for loss to insured & liability ins pays for loss to others
25
When making food decisions, which of the following is most likely to be least expensive?
Full service restaurants
Ready-to-eat foods
Convenience foods
Fast food restaurants
26
In which situation would an Auto Liability Insurance policy protect the policyholder?
PH backed into a car in a parking lot & damaged his car and the other car
PH car was parked during a severe hailstorm and $2k of damage done to car.
PH hit a deer while driving to work csusing $2k of dmage to his car
An unisured driver ran stoplight & hit PH & damaged PH & their own car
27
Which is a general rule to minimize identity theft when dealing with credit reports?
Report errors to only 1 credit reporting agency and they will inform others
Keep credit rpts in an accessible location, so can access if fraud occurs
Wait 60 days b4 disputing any wrong information in credit rpt or on cc stmt
Check each credit report at least once per year
28
1st medical bill was $1,000. Your health insurancy policy has $500 deductible & 20% co-insurance. What is your payment?
$600
$700
$0, insurance will cover the entire medical bill
$500
29
Which of the following actions will NOT make an individual vulnerable to identity theft?
Throwing mail in the garbage
Responding to an email from your depository institution
Using a computer without updated spyware
Paying cash for a movie ticket
30
A job provides health, life and disability insurance. The insurance is provded in addtn to reg salary. This is known as:
Coverage
Household production
Government programs
Employee benefits
31
Perry would like to purchase a new car. What should he consider first in the planned buying process?
Calculate the cost of ownership
Evaluate the opportunity cost and trade-offs to purchasing the car
Rank product features in order of importance
Research different sellers to determine where to purchase the car from
32
Melissa needs a vehicle and is considering leasing one. This means:
She would be renting by making pmts over time, but title remains w/ leasor
She will need to pay a larger down payment to offset lease agreement fees
She would be purchasing the vehicle by making payments over time
Her depreciation costs will likely be higher
33
Insurance can be purchased to protect one from which of the following losses?
Stock market losses
Car maintenance
Maintaining the price of your home
Health care expenses

Part 3 Spending Unit Flashcards | StudBud