Chapter 5 Money In Review

Question 1

The cost of borrowing money on an annual basis

Answer 1

APR

Question 2

Regretting a purchase soon after making it

Answer 2

Buyers remorse

Question 3

Recognizing a brand

Answer 3

Brand recognition

Question 4

Caveat emptor

Answer 4

Buyer beware

Question 5

Borrowing money and paying overtime

Answer 5

Financing

Question 6

Having a beginning and an end

Answer 6

Finite

Question 7

To buy an item without thinking about it

Answer 7

Impulse purchase

Question 8

The cost that you will be losing and receiving from a purchase

Answer 8

Opportunity costs

Question 9

Rule of 78

Answer 9

90 days same as cash

Question 10

And amount of money spent that causes some pain

Answer 10

Significant purchase

Question 11

Seek wise____

Answer 11

Counsel

Question 12

Wait _____ before making a major purchase

Answer 12

Overnight

Question 13

Number of advertisements a person views daily

Answer 13

3000

Question 14

Spend $60 on the latest video game or a gift $60 to charity

Answer 14

Opportunity costs

Question 15

Creates consumer awareness for a trademark or product

Answer 15

Branding

Question 16

Color is a product positioning technique used to get the buyers attention

T/F

Answer 16

T

Question 17

Advertising slogan that have been around for a long time no longer work

T/F

Answer 17

F

Question 18

Answering a question with a question is the sign of a well trained sales person

T/F

Answer 18

True

Question 19

Typically 90 days same as cash contracts convert to payments with interest up to 24% APR

T/F

Answer 19

T

Question 20

The opportunity cost of purchasing a new cell phone could be the purchase of a new prom dress

T/F

Answer 20

T

Question 21

Describe the five steps to follow before making a significant purchase

Answer 21

1) Wait overnight
2) Consider you’re buying motives
3) Never buy anything you don’t understand
4) Consider the opportunity costs
5) Seek wise counsel

Question 22

Why do so many people fall for financing as a marketing tool

Answer 22

They think they’re getting free money