Spending

Which strategy best helps a famous brand company reach consumers?

• sending out mailings in small towns

• selling at trade shows

• advertising nationally

• marketing selectively

What is the purpose of comparison shopping?

• ensuring you are not buying out of emotion

• attempting to find the best deal on a product

• determining whether you truly need a product

• reading reviews to make sure a product is good

Why do prices increase when demand for a product is high?

• Companies know they can make more money by selling fewer products at higher prices.

• Companies know that people will be willing to spend more to get an in-demand product.

• Companies take advantage of the demand to make people spend more money on excess products.

• Companies know they can stop production and still make money on sales.

At what point does buying in bulk stop being a wise spending choice?

• when the consumer has a lot of space to store bulk items

• when costs rise too quickly due to demand

• when bulk items are not on sale anymore

• when the consumer buys more than is needed

Why might people choose to rent a home rather than buy a home?

• They have a lot of money saved for a down payment.

• They may be relocated for a job.

• The interest rates on equity are too high.

• The maintenance costs are more reasonable for renters.

Building equity in a home is a good thing because

• mortgage payments decrease as equity increases.

• credit scores increase as equity increases.

• equity in a home increases the homeowner’s net worth.

• property taxes decrease as equity increases.

A monthly fixed rate mortgage payment

• could change.

• never changes.

• increases annually.

• decreases annually.

What is not a potential risk of purchasing a used car?

• used cars can require repairs sooner

• warranties can be very limited

• used cars can have a lower initial cost

• unexpected issues may arise

Which details apply to a financing contract? Check all that apply.

• requires a credit check

• are always less expensive than using a credit card

• includes interest rate information

• requires a signature for rent-to-own agreements

• can be broken at any time

Which statements apply to leasing a car? Check all that apply.

• You can sell the car to someone else after the lease ends.

• Payments are generally higher than buying.

• There are mileage restrictions on the car.

• You must return the car after the lease ends.

• There are penalties for ending the lease early.