Consumer Choices and Responsibilities

It is usually wise to use credit instead of cash when making large purchases.

• True

• False

Almost all credit-card borrowing is made up of unsecured loans.

• True

• False

Comparison shopping does not help a consumer stay within their budget.

• True

• False

The interest charged on automobile loans usually is less than that charged on home loans.

• True

• False

Credit cards have been mandated to charge the same fees and interest rates regardless of the bank.

• True

• False

What is the most important information needed to create a budget?

• records of your income

• total saving

• amount spent on food

• extra spending

Which of the following is a measure of your dependability to repay a loan? (select all that are true)

• capital

• character

• capacity

• cadence

Which agency has the power to issue a cease and desist order that requires a firm to stop making a false or misleading advertising claim?

• Food and Drug Administration

• Federal Trade Commission

• Federal Reserve Commission

• all of these

Which of the following should you least consider when deciding whether to make a purchase?

• whether you can afford the product

• which celebrities use the product

• the advice of someone who already owns the product for advice

• expert advice about the product

Loans for education would fall under which of these categories?

• secured loans

• credit card loans

• consumer loans