Personal Financial Responsibility: Chapter 7 Review

Spending money on luxury items while basic needs are not being met is an example of financial irresponsibility. 

• True
• False

Credit is the ability to borrow money and pay it back later, usually without interest.

• True
• False

Service credit is often provided by utility companies and doctors.

• True
• False

Finance charges increase the cost of items purchased by a credit card.

• True
• False

A person who borrows money is called a creditor.

• True
• False

Systematic decision making

• is the process of making choices that reflect your goals
• considers all the pros & cons as well as the costs
• requires you to be financially responsible
• all of these

Which of the following is NOT a reward of being financially responsible?

• an easy life 
• satisfaction
• independence
• financial freedom

Which of the following is NOT one of the five steps of creating a buying plan?

• define your spending goal
• choose a payment method
• define criteria
• set a spending limit

Protections offered by many credit card companies include

• replacement of goods damaged or stolen within 90 days of purchase
• relief from liability of fraudulent charges made without your knowledge
• emergency replacement of a lost card within 24 hours
• all of these

Which of the following is NOT a cost of financial responsibility?

• unhealthy lifestyle/poor health
• lack of recreation and fun
• no income
• poor family relationships