Unit 3 Study Guide

When one is seeking to purchase a product at a store, what additional cost must be paid in addition to the listed price of the product?

• Insurance

• Interest

• Purchasing fee

• Sales tax

Which of the following is a financial institution that handles money, including keeping it safe for saving or commercial purposes?

• Payday lender

• Bank

• Check cashing service

• Pawn shop

When one receives a product or service now, but pays for it later, it is known as what?

• Credit

• Debit

• Deduction

• Interest

Which of the following purchasing cards removes funds from one’s checking account almost instantly after one makes a purchase?

• Credit card

• Debit card

• Payroll card

• Withdrawal card

When planning one’s personal budget, a variable expense is what?

• An expense that one does not have to make

• An expense in which there are many options to choose from

• An expense that may change in amount from month to month

• An expense that does not have to be paid immediately

Sales tax amounts are generally established by which of the following?

• State and local rates

• Federal and state rates

• Federal and local rates

• Business and federal rates

If one spends more money than they have in their bank account, they are charged a what?

• Debt fee

• Maintenance fee

• Overdraft fee

• Reserve fee

Which of the following allows a customer to pay a deposit on an item, and then not receive the item until the balance is paid in full?

• Credit card

• Increment investing

• Layaway plan

• Portion payment

Rent-to-own agreements can negatively impact consumers because:

• Consumers do not have to pay cash for the item

• Consumers will pay a high interest rate on the item

• Consumers can immediately have access to the item

• Consumers are limited from purchasing similar items

When eating at a restaurant, one must consider which of the following additional costs to the price of their meal and sales tax?

• Interest fee

• Reservation cost

• Service fee

• Tip