Unit 3 Test - Spring

What do consumers most commonly use the internet for?

• printing contracts

• online shopping

• electronic banking

• selling a house

How is use of the internet a potential security issue?

• Phishing is a method used to trick users into revealing their account information by replying to emails or social media requests.

• Hackers can transmit personal information and a browser's history through the use of unwanted software.

• Spyware includes harmful programs that can be downloaded to a user's computer by visiting an infected website.

• Viruses are individuals who attempts to do harm by gaining access to another computer.

What is a consumer right based on the Fair Credit Reporting Act?

• Consumers can remove unfavorable information from a credit report.

• Consumers can opt out of the credit reporting system.

• Consumers can dispute incorrect information on a credit report.

• Consumers can block potential creditors from viewing a credit report.

What is the consumer's responsibility in protecting themselves from security issues?

• Consumers should acquire, use, and regularly update an antivirus program to protect personal information.

• Consumers must subscribe to an identity protection service to be truly protected from identity theft.

• Consumers ought to use only open public networks which are more secure than private networks.

• Consumers should refrain from picking passwords that are too difficult to remember, but rather use last names and birthdays.

How can consumers seek remedy from unfair financial practices?

• by filing a dispute with the proper authorities and working with an advocate to resolve any issues

• by contacting those involved only once, instead of multiple times, to avoid angering the other party

• by trusting that the other party involved will realize and correct any errors made on their part

• by getting in touch with the local television station in the hopes that they will publicize your issue

Why must consumers be vigilant in protecting themselves?

• There are no laws which protect consumers against dishonest business practices.

• There is a lack of consumer rights to periodic credit reports or to dispute errors.

• There are a lack of organizations available to offer support for consumers against businesses.

• There are many different methods thieves may use to obtain personal information.

What is the difference between the costs of secured and unsecured loans?

• Secured loans have lower interest rates and cost less; unsecured loans have higher interest rates and cost more.

• Secured loans are associated with a lower fee schedule and so cost less; unsecured loans usually have a higher fee schedule and so they cost more.

• Secured loans carry higher interest rates costing more; unsecured loans have lower interest rates costing less.

• Secured loans have longer repayment terms and cost more; unsecured loans have shorter repayment terms and cost less.

Why are savings accounts a good option to pay for college costs?

• They are a prepaid tuition plan that allows you to "lock in" tuition costs.

• They are a safe and flexible means of saving for a long-term goal yet may have lower interest rate.

• They are a conservative and flexible investment option that offers modest returns.

• They involve money invested in an account for a child, who gains access to the funding at a certain age.

Which of these is a form of self-help financial aid?

• liability coverage

• scholarships

• tuition fees

• student loans

Which situation would result in a credit card issuer charging a late-payment fee?

• A cardholder pays $75 for the privilege of using the card for one year.

• A cardholder pays off one credit card with a new credit card.

• A cardholder takes out $400 from an ATM.

• A cardholder fails to make a minimum payment one month.