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OTFCS Consumer Education Final Exam

Total questions: 24

Worksheet time: 12mins

Name
Class
Date
1.

What are consumer protections and obligations?

a)

Laws that protect consumers

b)

Obligations consumers have to businesses

c)

Laws that protect the government

d)

Both A and B are correct

2.

Definition of Traditional Economic System.

a)

Full government control, Socialism or Communism are examples

b)

Combination of the other 3 systems, United States has this system

c)

Very little government involvement, controlled by businesses and consumers

d)

Traditions passed down, mainly agricultural, not much technology

3.

Definition of Command Economic System.

a)

Full government control, Socialism or Communism are examples

b)

Combination of the other 3 systems, United States has this system

c)

Very little government involvement, controlled by businesses and consumers

d)

Traditions passed down, mainly agricultural, not much technology

4.

Definition of Market Economic System.

a)

Full government control, Socialism or Communism are examples

b)

Combination of the other 3 systems, United States has this system

c)

Very little government involvement, controlled by businesses and consumers

d)

Traditions passed down, mainly agricultural, not much technology

5.

Definition of Mixed Economic System.

a)

Full government control, Socialism or Communism are examples

b)

Combination of the other 3 systems, United States has this system

c)

Very little government involvement, controlled by businesses and consumers

d)

Traditions passed down, mainly agricultural, not much technology

6.

True or False: Using the rational buying decision steps help people think logically through the decision making process.

a)

True

b)

False

7.

Why is competition in a market a good thing?

a)

It creates lower prices

b)

We get better quality products

c)

We get new features or new products often

d)

All of the above

8.

Which of the options defines Brand advertising?

a)

Appeals to customer’s emotions

b)

Uses name of company or well known logo/character, all about the NAME

c)

Educates you about the products benefits, good for technology

d)

Usually in response to a competitor’s advertisement

e)

Compares their product to the competitor’s product

9.

Which of the options defines Informative advertising?

a)

Appeals to customer’s emotions

b)

Uses name of company or well known logo/character, all about the NAME

c)

Educates you about the products benefits, good for technology

d)

Usually in response to a competitor’s advertisement

e)

Compares their product to the competitor’s product

10.

Which of the options defines Comparative advertising?

a)

Appeals to customer’s emotions

b)

Uses name of company or well known logo/character, all about the NAME

c)

Educates you about the products benefits, good for technology

d)

Usually in response to a competitor’s advertisement

e)

Compares their product to the competitor’s product

11.

Which of the options defines Defensive advertising?

a)

Appeals to customer’s emotions

b)

Uses name of company or well known logo/character, all about the NAME

c)

Educates you about the products benefits, good for technology

d)

Usually in response to a competitor’s advertisement

e)

Compares their product to the competitor’s product

12.

Which of the options defines Persuasive advertising?

a)

Appeals to customer’s emotions

b)

Uses name of company or well known logo/character, all about the NAME

c)

Educates you about the products benefits, good for technology

d)

Usually in response to a competitor’s advertisement

e)

Compares their product to the competitor’s product

13.

What is a credit score?

a)

How much money you have on your credit card

b)

Number that depicts a consumer’s creditworthiness

c)

Ranking of the bank company

d)

None of the above

14.

What is a co-signer for a loan?

a)

The bank personnel that helps you with the paperwork

b)

Your spouse

c)

2nd person who signs loan, obligates them to pay the loan if you default/don’t pay

d)

Item of value used to back a loan

15.

What is an interest rate?

a)

Amount of money owed

b)

Transferring a balance from one card to another

c)

Amount of time allowed before the payment is considered late

d)

Fee for borrowing money

16.

What is identity theft?

a)

Illegal use of an individual’s personal information for fraudulent purposes

b)

Person or organization who works on behalf of consumers

c)

The right to seek legal remedy when laws are violated

d)

Someone who buys and uses products or services

17.

Which is an example of a telemarketing scheme?

a)

The company, Herbalife (the documentary we watched)

b)

Sending emails under the disguise of a “Prince”

c)

Sending emails that someone “won” a prize in order to collect their information

d)

The “IRS” calls and tells you that you owe taxes and to pay over the phone

18.

Checking accounts are typically used for:

a)

Bills and monthly payments

b)

Keeping money in your account (emergency fund, vacation fund, big purchases)

19.

Savings accounts are typically used for:

a)

Bills and monthly payments

b)

Keeping money in your account (emergency fund, vacation fund, big purchases)

20.

What does it mean if you overdraw your checking account?

a)

It’s a line of credit for purchases

b)

Not enough money in your account for checks or debit card purchases

c)

Interest rate is too high

d)

Multiple people have access to one account

21.

What does a Blank endorsement mean?

a)

Transfers the check to another person (“Pay to the Order of ________”)

b)

Only has your signature

c)

Restricts use of the check (“For Deposit Only, For Mobile Deposit Only”)

22.

What does a Special/Endorsement in full mean?

a)

Transfers the check to another person (“Pay to the Order of ________”)

b)

Only has your signature

c)

Restricts use of the check (“For Deposit Only, For Mobile Deposit Only”)

23.

What does a Restrictive Endorsement mean?

a)

Transfers the check to another person (“Pay to the Order of ________”)

b)

Only has your signature

c)

Restricts use of the check (“For Deposit Only, For Mobile Deposit Only”)

24.

What does it mean to reconcile your account?

a)

Balance from your check register matches your reconciliation form

b)

Close your account

c)

Open an account

d)

None of the above