Consumer and Financial decision

One problem with bartering was the need for a ‘double coincidence of wants.’ What does this mean?

• Finding two people who want the same thing

• Finding someone who wants what you have and has what you want

• Finding twins who coincidentally want identical items

• Finding two people who coincidentally want what you have

Since January 2011, a single consumer law has been enforce across Australia. It ensures that when you buy products and services they come with automatic guarantees that they will work and do what you asked for. What is this law called?

• Australian Goods and Service Law (AGSL)

• Australian consumer Law (ACL)

• Australian Fair-Trading Law (AFTL)

• Australian Fir Price Law (AFPL)

In Australia, which of the following describes a compulsory savings scheme for retirement?

• A credit cards

• A personal loan

• A term deposits

• A superannuation schemes

Which of the following is an advantage of using a debit card to purchase goods and services?

• You use a financial institutions money and are charged interest

• You use your own money and pay no interest

• You may spend up to your credit limit

• You use a financial institution’s money but they do not charge interest

A common scam is referral selling. What does this usually involve?

• The consumer being offered a ‘special deal’ if they pay in cash

• The consumer being offered a ‘special deal’ if they buy the product and provide their names as referees for the shop assistance

• The consumer being offered a ‘special deal’ if they buy the product and provide their names of potential customers

• All of the above

Which of the following is an advantage of a credit card?

• It is easy to overspend

• They are a convenient payment method for online transactions

• They are often more expensive than other forms of credit

• Missing a monthly repayment will affect your credit rating

Which of the following are features of a contract?

• Offer, deliberation, acceptance

• Offer, acceptance, consideration

• Deliberation, acceptance, consideration

• Offer, consideration, finalisation

Which federal government commission enforces and administers competition and consumer protection laws?

• ASIC

• ACCC

• ACA

• Industry ombudsman

Harvey Smith is a large electrical retailer. It has been advertising some DVD’s at heavily reduced prices; however, it has very few in stock and the salespeople have been advised to direct consumers to higher priced DVDs. Which misleading advertising technique is Harvey Smith using?

• Referral selling

• Bait and switch advertising

• Unsolicited goods

• Pyramid schemes

What is the Latin term meaning ‘let the buyer beware’?

• Careful emptor

• Caviar emptor

• Caveat empty

• Caveat emptor