Quiz 2022 51Q Personal Finance: Contracts & Consumer Protection

Jonathan, a fan services employee at a professional football stadium, listened attentively to a fan's complaints regarding the service they received. When following the general steps employees can take to handle customer complaints appropriately, what should Jonathan do next?

• Explain the plan of action to the customer and take action

• Restate the complaint in his own words to show an understanding

• Promptly investigate the problem in the stadium's policy

• Thank the fan for bringing the problem to his attention

Answer explanation

Restating the complaint shows Jonathan understands the fan's concerns, which is crucial for effective communication and resolution. This step builds rapport before explaining the plan of action.

An advantage of using cash as a payment method is the fact that

• it is inconvenient.

• there are no hidden fees.

• it helps build credit.

• there are no security benefits.

Answer explanation

An advantage of using cash is that it has no hidden fees, unlike credit cards or digital payments, which may include transaction fees or interest charges.

Kari noticed a couple of withdrawals from her bank account that she did not make. Two days later, she received mail from a medical provider about a treatment she didn't get. Which of the following types of consumer fraud did Kari most likely suffer from:

• Phishing

• Credit card fraud

• Identity theft

• Debt collection fraud

Answer explanation

Kari's unauthorized withdrawals and unexpected medical mail indicate her personal information was misused, which is characteristic of identity theft. This type of fraud involves someone using another person's identity for financial gain.

Parker decided to create an Instagram account to share pictures of nature he takes with his new camera. To create a strong and secure online password for his account, Parker should

• use his personal information.

• make his password a nonsense phrase.

• keep it short in length.

• reuse a password from another website.

Answer explanation

Making his password a nonsense phrase is the best choice because it creates a strong and unique password that is hard to guess, unlike using personal information or reusing passwords, which can compromise security.

Roxanne wants to build charitable giving into her spending plan, but she needs to make sure the charity she donates to is a legitimate organization. Which of the following statements is true of legitimate charities:

• They sound very similar to another charity's name.

• They only accept cash, gift cards, or wire transfer.

• They will tell you what donations will be used for.

• They use most of the money as overhead.

Answer explanation

Legitimate charities are transparent about how donations will be used, ensuring donors understand the impact of their contributions. This distinguishes them from less credible organizations.

Fatima learns that one of the machines at her new business is broken and cannot fill a big order that came in last week. This is an example of a(n) _________ risk.

• strategic

• operational

• hazard

• financial

Answer explanation

This situation illustrates an operational risk, as it pertains to the internal processes of the business. A broken machine directly affects the ability to fulfill orders, impacting daily operations.

Which of the following is a characteristic of a financially responsible, single individual without dependents:

• They regularly finance a college fund.

• They have more capability to save.

• Their grocery store bills are larger.

• Their insurance plans are more expensive.

Answer explanation

A financially responsible, single individual without dependents typically has fewer expenses, allowing them to save more. This makes 'They have more capability to save' the correct choice, as the other options imply higher costs.

Julie is conducting online research to determine what type of laptop she wants to purchase. She is looking for a high-quality laptop but is working within a specific budget. How will conducting research before she makes a purchase likely impact her overall satisfaction?

• She will be more satisfied because it will help her save money.

• She will be more satisfied because she will only see positive reviews.

• She will be unsatisfied because it will require more effort on her part.

• She will be unsatisfied because information will be often limited.

Answer explanation

Conducting research allows Julie to compare options and find the best quality laptop within her budget, leading to better financial decisions and increased satisfaction with her purchase.

Vickey and Sandra decided to be roommates and are looking for an apartment together. What financial conversation should Vickey and Sandra have before they officially sign a lease together?

• How monthly expenses are divided.

• What the guidelines are for having guests.

• What time of night quiet hours start.

• How often they should clean the apartment.

Answer explanation

Before signing a lease, Vickey and Sandra should discuss how monthly expenses are divided to ensure clarity and prevent future conflicts. This is crucial for financial stability in their shared living situation.

Melina is market-savvy and has a solid understanding of securities. She builds her portfolio strategically to maximize returns. How would you classify Melina's risk tolerance?

• Inflated

• Moderate

• Conservative

• Aggressive

Answer explanation

Melina's strategic portfolio building to maximize returns indicates a willingness to take on higher risks for potentially greater rewards, classifying her risk tolerance as aggressive.