WorksheetsUnit 3 Quiz: Consumer Preferences, Banking, and Contracts
Total questions: 25
Worksheet time: 50mins
What type of bank account is typically used for everyday transactions and does not earn typically interest?
Savings Account
Checking Account
Certificate of Deposit
Money Market Account
Which of the following is NOT an essential element of a contract?
Offer
Acceptance
Mutual Agreement
Advertisement
What is the term for the percentage charged on a loan or paid on savings?
Principal
Interest Rate
Dividend
Premium
Which type of bank account offers higher interest rates but, typically requires a higher minimum balance?
Checking Account
Custodial Account
Money Market Account
Certificate of Deposit
If a savings account offers an annual interest rate of 5%, what is the interest earned on a principal of $1000 after one year?
$50
$100
$150
$200
Which type of bank account is designed for long-term savings with a fixed interest rate and maturity date?
Checking Account
Savings Account
Certificate of Deposit
Money Market Account
A interest-bearing deposit account held at a bank or other financial institution
Education Savings Account
An account in which money is kept in a bank or credit union for safekeeping. Money can be easily withdrawn by writing checks, using an ATM, or debit card.
Interested calculated not only on the original principal, but also on the interest accrued.
Compound Interest
Noncompound interest
Accrual interest
Credit History
This organization is sanctioned by the US government to regulate banking throughout the United States.
Federal Bank of Washington
National Treasury Fund
Why might a consumer choose to open a Checking account at a Credit Union over a traditional bank?
Credit unions often provide lower fees and better interest rates than traditional banks.
Credit unions offer a broader range of financial products than traditional banks.
Credit unions are not regulated by the government, making them more flexible.
Credit unions typically offer more personalized customer service due to their member-focused structure.
Adding funds into a Checking or savings account is known as a:
Deposit
Withdrawal
Over-Draft
ACH Transfer
If interest rates are raised, how does it affect the cost of borrowing money?
It makes borrowing $ more expensive.
It makes borrowing $ less expensive.
It incentivizes people to borrow more money.
There is no correlation between interest rates and borrowing $.
What does it mean to overdraft your checking account?
Spending more money than is currently available in your checking account, resulting in a negative balance.
Transferring more than the daily limit allowed by your bank.
Having your paychecks transferred into your checking account.
Depositing more money into your checking account than the account limit allows.
What is the primary purpose of the FDIC (Federal Deposit Insurance Corporation)?
To provide loans to banks in financial trouble.
To regulate interest rates for all bank accounts.
To insure deposits at member banks, protecting consumers’ money up to a certain limit in case the bank fails.
To manage the overall money supply and set national monetary policy.
What factor is most likely to influence a consumer's preference for one product over another?
Price of the product
Quality + Durability
Brand Loyalty
All of the above
What term refers to consumers' tendency to prefer products they've bought before, despite new alternatives in the market?
Price sensitivity
Brand Loyalty
Product Awareness
Impulse Buying
What role does scarcity play in influencing consumer preferences?
Scarcity decreases the demand for a product.
Scarcity often increases the perceived value and desirability of a product.
Consumers avoid products that are scarce due to fear of poor quality.
Scarcity has no impact on consumer behavior or preferences.
Which of the following situations would make a contract unenforceable?
The contract is signed by both parties but one party later changes their mind.
One of the parties was a minor when the contract was signed.
The contract was verbal but both parties completed their obligations.
The contract was formed between family members.
What is the primary purpose of a "Terms and Conditions" agreement?
To provide legal guidelines for website use and set the rules for interactions between the user and the service provider.
To advertise products and services to consumers.
To explain a company’s mission statement and values.
To offer customer service for the website or service.
What is considered a breach of contract?
Failing to perform any term of a contract, written or oral, without a legitimate legal excuse.
Deciding not to enter into a contract.
Negotiating contract terms.
Changing the terms of a contract with mutual agreement.
A savings product that earns interest on a lump sum for a fixed period of time.
Bounced check
Savings bank
Money market account
Certificate of Deposit (CD)
If a user does not agree to a website's Terms and Conditions, what is the usual course of action?
The user can still access the website with full functionality.
The user can opt out of any terms they disagree with.
The user cannot use the website or its services.
The user must submit a formal complaint.
Why do companies include a "Limitation of Liability" clause in their Terms and Conditions?
To guarantee that users will not sue the company.
To prevent users from using their service in multiple countries.
To limit the company’s legal responsibility in case of damages or issues arising from the use of their service.
To set a maximum price for products or services.
