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Unit 3: Consumer Protection and Budgets

Total questions: 38

Worksheet time: 19mins

Name
Class
Date
1.

Which of the following is not a disadvantage to online shopping?

a)

Waiting for the product to arrive

b)

Hassle to return the product

c)

Convenient (always open 24/7/365)

d)

Can't try on the product or test a product

2.

Debt that is paid off within one year, such as medical bills or a credit card bill:

a)

Long Term Liability

b)

Current Liability

c)

Equity

d)

Liquid Asset

3.

Financial situation that occurs when you spend more money than you make

a)

Budget

b)

Surplus

c)

Cash flow

d)

Deficit

4.

Purchasing items at the spur of the moment

a)

Comparison shopping

b)

Impulse buying

c)

Unit pricing

d)

Timing purchase

5.

The debts that you owe

a)

Surplus

b)

Income

c)

Net worth

d)

Liabilities

6.

Any item of value that a person or company owns

a)

Deficit

b)

Expense

c)

Asset

d)

Liability

7.

A process whereby a dispute between a customer and a company is solved by an impartial third party whose decision is legally binding

a)

Conversation

b)

Arbitration

c)

Mediation

d)

Fraud

8.

Money that is left over after paying the essentials (like food, water, clothing, transportation, and shelter)

a)

Discretionary income

b)

Insolvency

c)

Deficit

d)

Net Pay

9.

Independent government agency that promotes consumer protection, handles reports of fraud, and the elimination of anti-competitive business practices and monopolies

a)

BBB

b)

FCC

c)

FTC

d)

CPSC

10.

Financial state where deficits is greater than your earnings

a)

Surplus

b)

Insolvency

c)

Liability

d)

Budget

11.

A separately purchased agreement by the manufacturer or distributor to cover the costs of repairing the product

a)

Service contract

b)

Extended Warranty

c)

Limited Warranty

d)

Implied warranty

12.

A prolonged warranty offered to customers in addition to the standard warranty and may be offered by the warranty administrator, distributor, retailer, or manufacturer?

a)

Express Warranty

b)

Service Contract

c)

Limited Warranty

d)

Extended Warranty

13.

Mortgage payments/rent payments are an example of

a)

Fixed Expense

b)

Variable Expense

14.

Money to buy groceries is an example of what type of expense:

a)

Fixed Expense

b)

Variable Expense

15.

A cell phone plan is what type of expense:

a)

Fixed Expense

b)

Variable Expense

16.

Which of the following is the most liquid asset?

a)

Cash

b)

House

c)

Retirement accounts

d)

Savings account

17.

Which of the following is not a good strategy to protect yourself from identity theft?

a)

Creating strong and unique passwords for each of your accounts and updating them frequently

b)

Review your bank statements of purchases every month

c)

Not carrying your social security card in your wallet

d)

Doing online shopping through a hotel's free public wi-fi

18.

Types of expenses that change month to month. For example one month you may need to pay for a medical bill but you won't for other months.

a)

Fixed Expense

b)

Variable Expense

19.

What is the formula for unit pricing?

a)

# of something (pounds, miles, gallons, etc.) / $

b)

$ / # of something

20.

An attempt by a third party to help facilitate discussion between the two parties and help form a compromise or consensus that benefits both sides.

a)

Conversation

b)

Arbitration

c)

Mediation

d)

Fraud

21.

An organization focused on advancing marketplace trust by setting ethical standards for businesses and business practices.

a)

CPSC

b)

SEC

c)

IRS

d)

BBB

22.

A written guarantee from the manufacturer or distributor that states the condition under which the product can be returned, replaced, or repaired

a)

Manufacturer's promise

b)

Pledge

c)

Warranty

d)

Rebate

23.

The money you receive (cash inflow)

a)

Expense

b)

Liabilities

c)

Surplus

d)

Income

24.

When is the time you would make a cash flow statement

a)

At the start of a year to set a financial goal for that year

b)

A few months before a deadline of a major financial goal

c)

During a month to keep track of your spending

d)

At the end of a month as a way for you to review your budget

25.

The independent US government agency that protects the public against unreasonable injuries as results of a product and can issue recalls.

a)

CPSC

b)

FTC

c)

FCC

d)

BBB

26.

The process of examining the price of products by looking at different companies before buying is called:

a)

Buyer's remorse

b)

Comparison shopping

c)

Timing purchases

d)

Impulse buying

27.

A partial refund of the price of a product

a)

Rebate

b)

Discount

c)

Unit pricing

d)

Service contract

28.

Written guarantee that comes in two variations: Full Warranty and Limited Warranty

a)

Express Warranty

b)

Implied Warranty

29.

A group of people that formed together because they shared a common injury or felt wronged by a company or product and sue a company as a group

a)

Class action lawsuit

b)

Small Claims Court

c)

Mediation

d)

Arbitration

30.

Financial statement that lists items of value owned, debt's owed, and a person's monetary holdings

a)

Cash Flow Statement

b)

Budget

c)

Net Worth

d)

Tax Return

31.

Deliberate deception to secure unfair or unlawful gain, to deprive a victim of a legal right

a)

Mediation

b)

Arbitration

c)

Extended Warranty

d)

Fraud

32.

Unwritten guarantee that covers certain aspects of a product or its uses?

a)

Implied Warranty

b)

Express Warranty

33.

The act when a person claims they are someone else in an email fraud is called:

a)

Phishing

b)

Spoofing

c)

Catfishing

d)

Deception

34.

Which of the following is not one of the 4 p's of Imposter Fraud

a)

Presenting

b)

Problem

c)

Pay

d)

Peace out

35.

The criminal act when a person installs an electronic device over an existing card terminal (like a card reader at a gas station or gas pump) to steal card and bank information is called:

a)

Phishing

b)

Imposter Fraud

c)

Spoofing

d)

Skimming

36.

What is the key for making an effective zero based budget

a)

Budget every expense down to the cent

b)

Limit your variable expenses to 3 items or less

c)

Always use an electronic budgeting app (even if you need to pay a subscription)

d)

Budget all your expenses and any surplus goes to savings

37.

True or False: In the envelope saving method, if you have leftover funds from a previous month, you should add that to the next month.

a)

True

b)

False

38.

What percentages of expenses fit in the 50-30-20 budget strategy

a)

50% savings

30% wants

20% needs

b)

50% needs

30% savings

20% wants

c)

50% wants

30% needs

20% savings

d)

50% needs

30% wants

20% savings/debts