Chapter 7 Quiz (NEW)

What is the name of the decision-making process that we use to be responsible shoppers?

• Problematic Decision-Making

• Strategic Decision-Making

• Systematic Decision-Making

• True Decision-Making

Failing to live up to your financial obligations to meet your goals and need is called...

• Financial Responsibility

• Financial Reductability

• Financial Irresponsibility

• Financial Credibility

Which is the first step of the buying plan?

• Set a timeline

• Choose the item to buy

• Define you spending goal

• Set a spending limit

The ability to borrow money and pay it back later is called...

• Credit

• Debit

• Debt

• FICO

Which of the following is NOT a benefit of credit?

• Increased Purchasing Power

• Security

• Finance Charge

• Convenience

Which of the following is NOT a disadvantage of credit?

• Reduction of future buying power

• Overspending

• Leverage

• Identity Theft

Finance charges are defined as...

• Interest and Fees

• Interest and Income

• Interest and Deduction

• Interest and Finance

Which of the following interest methods benefit the consumer?

• Adjusted Balance Method

• Previous Balance Method

• Average Daily Balance Method

Which of the following methods benefit the bank?

• Adjusted Balance Method

• Previous Balance Method

• Average Daily Balance Method

Finance charges increase the overall cost of goods and services purchased with a credit card.

• True

• False