Chapter 5 Test Dave Ramsey

An example of discretionary spending is ____. A. Utilities and food B. Transportation C. Monthly rent D. Nonessential goods and services

• Utilities and food

• Transportation

• Monthly rent

• Nonessential goods and services

Why do stores like scan and go options, apps, and one-click purchases?

• It's harder for customers to pay, so they end up saving money.

• It makes paying easier and faster, so customers are more likely to overspend.

• Digital pay is the way of the future, and retail stores like being ahead of the times.

• It's easier for the retail store clerks.

As an effective marketing strategy, companies pay a lot to...?

• Have their products strategically placed in the store.

• Get you to dislike their branding.

• Confuse you about their product.

• Choose a brand similar to theirs.

When someone steals and uses your debit or credit card info, that's called ____.

• Networking

• Borrowing

• Fraud

• Authorized spending

What does it mean to develop power over purchase?

• You are powerless in the face of an impulse purchase.

• You can make decisions very quickly when it comes to purchasing items.

• You are able to slow down and think through your motives before buying something.

• You have power to purchase whatever you want, and you do so.

To think big picture, you need to understand that . . .

• The best way to have more money is to have contentment.

• The best way to be content is to have more money.

• Your goals are less important than buying the latest and greatest stuff.

• You can buy happiness.

Companies use marketing to get your prefrontal cortex offline so you'll be vulnerable to impulse purchases.

• True

• False

Americans spend over $2,100 a year on _________.

• Impulse purchases

• Entertainment

• Groceries and eating out

• Credit card fees

What is the digital marketing strategy that tracks users across the web?

• Retargeting

• Native ads

• YouTube videos

• Content marketing

Before you insert your debit card at the gas pump, you should always . . .

• Check out the card reader to see if it looks different, loose, or worn

• Make sure you have enough money in your account

• Ask the store clerk if there has been a thief here lately

• Pay cash—never use a card at a gas pump.