| Question |
Answer |
| Which is usually more expensive: Generic or brand name products? |
brand name |
| What do you call income left over after taxes have been paid? |
disposable income |
| Luxury items come out of which type of income? |
discretionary |
| What is a promise to replace a faulty product? |
warranty |
| What two resources does every decision involve? |
time and money |
| What is the cost of credit expressed in dollars and cents? |
finance charge |
| Who owns a credit union, which provides loans and saving accounts? |
members |
| How many years should durable goods last? |
more than 3 |
| Why do some credit card companies offer initial low APRs? |
to lure in new customers |
| What is informative advertising? |
ads that give information about a product |
| What is competitive advertising? |
ads that try to convince customers their prodcut is better than others |
| If you cannot make payments on your secured loans, what can the bank do? |
take your property as collateral |
| How long will filing bankruptcy stay on your credit record? |
10 years |
| What law denies a person credit based on race, religion, gender, origin or age? |
Equal Credit Opportunity Act |
| What are installment loans used to purchase homes or land called? |
mortgages |
| What is the movement to educate buyers about the purchases they are making and to demand safer products? |
consumerism |
| What is an example of deceptive advertising? |
Bait and Switch |
| What is a consumer? |
a person who buys and uses goods and services |
| Why should a person engage in comparison shopping? |
to get information on prodcuts from different store so the bst decision can be made. |
| What is the difference between a secure and unsecure loan? |
a secure loan is backed by collateral, while an unsecured loan is not |
| What financial institution takes over contracts for installment debt from retailers and charges a fee for thier service? |
finance company |
| What is the original amount of money borrowed? |
principal |
| What ist he amount of moeny a borrower must pay for the use of someone else's money? |
interest rate |
| How is installment debt repaid? |
in equal payments for a fixed amount of time |
| Savings must become a _________ |
priority |
| The average American saves _____of their income. |
-2.2% |
| How much should you start with in your emergency fund? |
$1000 |
| In the next 10 years, ____% of the population will have a major financial event. |
75 |
| What does compound interest allow you to do? |
build wealth |
| What is the rate of return? |
the interest you are paid |
Buen Viaje lv.2 ch 8
