Chpt 2 Lesson 1.1, 1.2, 2

Question 1

In 2011, internet retail sales reached almost _____________.

Answer 1

$200 billion

Question 2

What is a tip for internet shopping?

Answer 2

Fully understand the return policy

Question 3

Studies show that the average person uses at least ____ products every morning before he or she even goes out the door.

Answer 3

15

Question 4

What is a tip for becoming a smart grocery shopper?

Answer 4

Watch for sales

Question 5

Which is a better buy: an 8 oz. bag of “Brand A” frozen corn for $1.00 or a 16 oz. bag of “Brand B” frozen corn for $2.50?

Answer 5

Brand A

Question 6

Which is a better buy, a package of 8 rolls of paper towels for $14.79 at your local grocery store or a package of 15 rolls of paper towels for $22.39 at your club store?

Answer 6

Club store

Question 7

In addition to price, what else should you consider when comparison shopping?

Answer 7

Product Expiration Date

Question 8

What vegetables would have more vitamins?

Answer 8

Carrots

Question 9

In which month would it be more expensive to buy watermelons?

Answer 9

December

Question 10

Who oversees the safety of America’s poultry?

Answer 10

United States Department of Agriculture (USDA)

Question 11

What is considered a fin fish?

Answer 11

Flounder

Question 12

When shopping for clothes, which of the following tips should you follow?

Answer 12

Shop at discount stores

Question 13

When renting an apartment, who is responsible for repairs when something goes wrong?

Answer 13

Landlord

Question 14

It is recommended that you pay no more than ______ of your gross income on rent, gas, heat and electricity.

Answer 14

30%

Question 15

What tips should you follow when shopping for an apartment?

Answer 15

Know whether utilities are included

Question 16

It is recommended that you pay no more than ______ of your net income on a car payment.

Answer 16

20%

Question 17

What is the advantage of leasing a vehicle?

Answer 17

You don’t need a down payment

Question 18

According to Consumer Reports, for many reasons, it usually ______________ to lease than to buy a car.

Answer 18

costs more

Question 19

What is the advantage of buying a vehicle?

Answer 19

You will have equity in the car.

Question 20

What is considered a positive aspect of credit?

Answer 20

Good credit can help you reach your goals.

Question 21

What is the disadvantage of using credit?

Answer 21

You will be tempted to make impulse purchases.

Question 22

The average new college graduate today has more than __________ in debts, including credit cards, student loans, and other debts, such as car loans.

Answer 22

$25,000

Question 23

Many people have __________ because they make only the minimum payments on their credit cards each month.

Answer 23

Big debts

Question 24

Almost __________ people in the United States file for bankruptcy each year.

Answer 24

1.5 million

Question 25

Which source of credit would be used to pay for goods or services at any business establishment?

Answer 25

Credit Card

Question 26

An installment loan may require __________.

Answer 26

Higher interest

Question 27

When you buy something on __________, the store holds it until you have paid for it in full.

Answer 27

Layaway

Question 28

What is a tip for managing your credit?

Answer 28

Limit yourself to no more than 2 credit cards

Question 29

What question should you ask when shopping for credit?

Answer 29

Which kind of credit is appropriate for your purchase?

Question 30

In order to apply for a credit card, you must show which of the following?

Answer 30

You are 18 years old

Question 31

What personal information may be asked on a credit card application?

Answer 31

All of the above

Question 32

Once you’ve applied for a credit card, the company has _____ days to respond to your application.

Answer 32

30

Question 33

What are used by credit card companies to evaluate your credit application?

Answer 33

Character

Question 34

Which of the “three Cs of credit” will be evaluated to ensure you have enough assets?

Answer 34

Collateral

Question 35

A good practice to establish credit is to:

Answer 35

Make regular payments

Question 36

What is one of the three primary credit bureaus?

Answer 36

TransUnion

Question 37

What is a way to reduce credit card fraud?

Answer 37

Destroy any old or canceled cards

Question 38

Credit card holders who are victims of theft or fraud are not responsible for more than _____ if they report the theft promptly.

Answer 38

$50

Question 39

What steps should you take if you think you’re getting into trouble?

Answer 39

Stop borrowing

Question 40

What principle does insurance work on?

Answer 40

Shared risk

Question 41

What is the reason that insurance is a good investment?

Answer 41

Provides financial security

Question 42

What would be required with a deductible of $500?

Answer 42

You pay the first $500 of damages

Question 43

If you have an accident resulting in $1,250 damages to your car and have $250 deductible collision coverage, which of the following statements is true?

Answer 43

You will pay the first $250 and your insurance company will pay $1,000

Question 44

What is true if you choose a high deductible?

Answer 44

Lower premiums

Question 45

What would pay for property that was damaged as a result of an accident that was your fault?

Answer 45

Property damage

Question 46

Uninsured Motorist Protection would cover financial losses due to:

Answer 46

Injuries caused by a driver without insurance

Question 47

What are auto insurance rates based on?

Answer 47

Your age

Question 48

What would be considered the most low-risk driver?

Answer 48

Twenty-five-year-old female

Question 49

What is true of renter’s insurance?

Answer 49

It will cover the cost of replacing items lost in a fire

Question 50

What types of insurance would cover costs associated with injuries resulting from someone falling on your property?

Answer 50

Liability Insurance

Question 51

What is one reason why health insurance has become expensive?

Answer 51

Increase in weight-related health issues

Question 52

What is true regarding indemnity health plans?

Answer 52

They do not require you to get approval to see a specialist

Question 53

Which type of managed care plan pays for visits to certain doctors or medical facilities?

Answer 53

Health maintenance organizations

Question 54

What is the advantage of a PPO compared to an HMO?

Answer 54

There are more choices of healthcare providers

Question 55

What is a type of disability insurance?

Answer 55

Workers compensation insurance

Question 56

What is the least expensive form of life insurance?

Answer 56

Term life

Question 57

What is the disadvantage of term life insurance?

Answer 57

You do not receive anything if the policy term ends

Question 58

Your need for life insurance will last for 20 years. You also wish to save some money over that same time period. What kind of life insurance would fill this requirement?

Answer 58

Universal life

Question 59

What can you do to prevent identity theft?

Answer 59

Destroy all financial statements