WorksheetsChapter 5 Review
Total questions: 30
Worksheet time: 15mins
An example of discretionary spending is ________.
Nonessential goods and services
Monthly rent
Transportation
Utilities and food
Why do stores like scan and go options, apps, and one-click purchases?
It's easier for the retail store clerks.
Digital pay is the way of the future, and retail stores like being ahead of the times.
It makes paying easier and faster, so customers are more likely to overspend.
It’s harder for customers to pay, so they end up saving money.
As an effective marketing strategy, companies pay a lot to...
Choose a brand similar to theirs.
Get you to dislike their branding.
Leave you confused with how their product works.
Have their products strategically placed in stores.
When someone steals and uses your debit or credit card info, that's called ____________.
Authorized spending
Fraud
Borrowing
Networking
What does it mean to develop power over purchase?
You have power to purchase whatever you want, and you do so.
You are able to slow down and think through your motives before buying something.
You can make decisions very quickly when it comes to purchasing items.
You are powerless in the face of an impulse purchase.
To think big picture, you need to understand that . . .
Your goals are less important than buying the latest and greatest stuff
You can buy happiness
The best way to be content is to have more money
The best way to have more money is to have contentment
Americans spend over $2,100 a year on ____________.
Credit card fees
Groceries and eating out
Entertainment
Impulse purchases
Companies use marketing to get your prefrontal cortex offline so you'll be vulnerable to impulse purchases.
False
True
What is the digital marketing strategy that tracks users across the web?
Content marketing
YouTube videos
Native ads
Retargeting
Before you insert your debit card at the gas pump, you should always...
Ask the store clerk if there has been a thief here lately
Make sure you have enough money in your account
Check out the card reader to see if it looks different, loose, or worn
Pay cash—never use a card at a gas pump
It's your right as the consumer to...
Keep a product even if it malfunctions or has manufacturing issues
Expect a product to live up to the quality promised to you before you purchased it
Buy whatever you want, as long as you don't go into debt over it
Pitch a fit if you don't like the product you just purchased, and demand a refund
The key to contentment is gratitude.
False
True
Part of being a smart consumer is being able to . . .
Set up digital wallets and mobile payment
Discern when to open a retail store credit card and when not to
Use a credit card for the points without going into debt
Say no to an unnecessary purchase
Why is paying for something in cash a better option than a virtual payment even if it isn't as convenient?
If you make spending less convenient, you're less likely to buy things you don't need.
It’s easier to part ways with cash, so you're more likely to overspend.
It isn't a better option. The perks of virtual payments outweigh the downsides.
It helps the store clerk when you use cash.
Why does brand recognition help businesses?
It keeps the consumer from buying more of their product or service
It helps them partner with other businesses
It helps the business recognize their own logo
It makes their name and logo easily memorable for consumers
It's okay to make an online purchase if you're on unsecured Wi-Fi, as long as you log off as soon as you're done.
False
True
Why should you never buy the extended warranty?
Most retailers will replace or repair the product if it stops working within the first year
You should buy the extended warranty. It is a smart financial decision
Retail items and products rarely break or malfunction
The retailers never keep their promises
Appreciating who you are and what you have instead of wanting what your friends have is called ________.
Consumerism
Gratitude
Comparison
Creating a budget, having clear money goals, and slowing down to think through a purchase are all practices of a ________.
Wise consumer
Free Spirit
Foolish consumer
College student
What is one way to practice power over purchase?
Spend more money
Make quicker decisions when buying
Make sure you're sticking to your budget
Pay with credit cards to earn rewards
Shoe companies can use influencer marketing to build brand recognition to gain credibility and familiarity.
True
False
Which of the following has the lowest risk for getting your card information stolen?
Using your debit card and PIN at a reputable store
Making an online purchase on an unsecured site
Handing your card over to a server at a restaurant
Storing your card information online
Reading the owner's manual, using the product as intended, and keeping the receipt are ways to...
Avoid regretting an impulse purchase
Think through a purchase
Go into debt over an item
Protect and maintain your purchase
Stuff doesn't equal _____. Debt makes people look better off than they ____.
Income; want to be
Happiness; deserve
Investments; should be
Wealth; actually are
Personal finance is 20% head knowledge and 80% _________.
Motivation
Good intentions
Attitude
Behavior
What three questions is the brain always asking?
Am I safe? What are my surroundings? What are my thoughts?
Am I safe? Do I belong? Does this feel good?
Can I buy it? Should I buy it? Will I buy it?
Am I nervous? Am I mad? Am I scared?
Since marketers have sophisticated technology and plans to get your money, what can you do to make sure you don’t fall into their trap?
Be aware of when and where you’re being marketed to.
Never buy anything online.
Stay off any form of digital media entirely.
Make snap decisions to buy products.
If you're a victim of card fraud...
Call 911 before making any other purchases
Wait for your bank to contact you
Contact your bank immediately
Wait until the next week to contact your bank
You won't find contentment by just continually buying stuff.
True
False
Contentment is hindered by __________.
The Five Foundations
Money principles
Delayed gratification
Immediate gratification
