Consumer Services Review

Mike has saved $6,000 for his college expenses by working part-time. He plans to start college next year and needs all of the money he saved. Which of the following is the safest place for his college money.

• Stocks

• Corporate bonds

• A bank savings account

• Locked in a closet at home

Which of the following is an advantage of using cash over a credit card?

• It's easier to buy things online.

• It is easier to keep a record of how you spend your money.

• It is easier to rent a car.

• It is easier to control the amount you spend.

Cassandra is a 21-year-old who is still in college. She wants a credit card so she can order items online. Her mother offers to let Cassandra use her card, but Cassandra would like it in her own name. What is the advantage of having it in her own name?

• She will be given more time to pay her bills.

• She will get a finance charge with a lower APR.

• If she pays her bills promptly she is establishing a good credit history.

• Her credit score will go up by 200 points.

You have $150 in your checking account and have the choice of paying for a $100 purchase with either your credit card or your debit card. What will your balance in your checking account be after you pay for that purchase with your credit card?

• $50

• $100

• $150

• $200

What answer best describes something that identity thieves can do to get your personal information?

• Pretend to be from a financial institution or company by emailing or calling you.

• Complete a change of address form to divert billing statement.

• Rummage through your trash.

• All of the the answer are correct.

Overspending results when income is greater than expenses.

• True

• False

If a consumer abuses or uses a product in a way that is not intended, the consumer has the right to ask for compensation.

• True

• False

Labels such as energy efficient, made from recycled content or biodegradable are used to indicate that a company is producing __________ products.

• sustainable

• unsustainable

• inexpensive

• healthy

To take action to have a wrong corrected is an example of a __________.

• consumer responsibility

• consumer advocacy

• financial services

• buying

Which of the following is NOT a sustainable shopping technique?

• Buy locally grown fruits and vegetables

• Buy single-packaged items to avoid buying products in bulk.

• Look for biodegradable cleaning products

• Use a reusable stainless steel water bottle rather than bottled water.