WorksheetsChapter 5 Mid Chapter Practice Test
Total questions: 37
Worksheet time: 19mins
Circle the letter next to the correct answer. An example of discretionary spending is _______.
Utilities and food
Transportation
Monthly rent
Nonessential goods and services
Circle the letter next to the correct answer. Why do stores like scan and go options, apps, and one-click purchases?
It's harder for customers to pay, so they end up saving money.
It makes paying easier and faster, so customers are more likely to overspend.
Digital pay is the way of the future, and retail stores like being ahead of the times.
It's easier for the retail store clerks.
Circle the letter next to the correct answer. As an effective marketing strategy, companies pay a lot to...?
Have their products strategically placed in the store.
Get you to dislike their branding.
Confuse you about their product.
Choose a brand similar to theirs.
Circle the letter next to the correct answer. When someone steals and uses your debit or credit card info, that's called __________.
Networking
Borrowing
Fraud
Authorized spending
Circle the letter next to the correct answer. What does it mean to develop power over purchase?
You are powerless in the face of an impulse purchase.
You can make decisions very quickly when it comes to purchasing items.
You are able to slow down and think through your motives before buying something.
You have power to purchase whatever you want, and you do so.
Circle the letter next to the correct answer. To think big picture, you need to understand that . . .
The best way to have more money is to have contentment.
The best way to be content is to have more money.
Your goals are less important than buying the latest and greatest stuff.
You can buy happiness.
Circle the letter next to the correct answer. Companies use marketing to get your prefrontal cortex offline so you'll be vulnerable to impulse purchases.
True
False
Circle the letter next to the correct answer. Americans spend over $2,100 a year on __________.
Impulse purchases
Entertainment
Groceries and eating out
Credit card fees
Circle the letter next to the correct answer. What is the digital marketing strategy that tracks users across the web?
Retargeting
Native ads
YouTube videos
Content marketing
Circle the letter next to the correct answer. Before you insert your debit card at the gas pump, you should always . . .
Check out the card reader to see if it looks different, loose, or worn
Make sure you have enough money in your account
Ask the store clerk if there has been a thief here lately
Pay cash—never use a card at a gas pump
Circle the letter next to the correct answer. It's your right as the consumer to . . .
Pitch a fit if you don't like the product you just purchased, and demand a refund
Buy whatever you want, as long as you don't go into debt over it
Expect a product to live up to the quality promised to you before you purchased it
Keep a product even if it malfunctions or has manufacturing issues
Circle the letter next to the correct answer. The key to contentment is gratitude.
True
False
Circle the letter next to the correct answer. Part of being a smart consumer is being able to . . .
Say no to an unnecessary purchase
Use a credit card for the points without going into debt
Set up digital wallets and mobile payment
Discern when to open a retail store credit card and when not to
Circle the letter next to the correct answer. 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.
Circle the letter next to the correct answer. You won’t find contentment by just continually buying stuff.
True
False
Circle the letter next to the correct answer. Why does brand recognition help businesses?
It makes their name and logo easily memorable for consumers.
It helps the business recognize their own logo.
It keeps the consumer from buying more of their product or service.
It helps them partner with other businesses.
Circle the letter next to the correct answer. 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.
True
False
Circle the letter next to the correct answer. Why should you never buy the extended warranty?
Retail items and products rarely break or malfunction.
You should buy the extended warranty. It is a smart financial decision.
Most retailers will replace or repair the product if it stops working within the first year.
The retailers never keep their promises.
Circle the letter next to the correct answer. Appreciating who you are and what you have instead of wanting what your friends have is called __________.
Comparison
Contentment
Gratitude
Consumerism
Circle the letter next to the correct answer. Creating a budget, having clear money goals, and slowing down to think through a purchase are all practices of a __________.
College student
Wise consumer
Foolish consumer
Free spirit
Circle the letter next to the correct answer. 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
Circle the letter next to the correct answer. Which of the following has the lowest risk for getting your card information stolen?
Handing your card over to a server at a restaurant
Making an online purchase on an unsecured site
Using your debit card and PIN at a reputable store
Storing your card information online
Shoe companies can use influencer marketing to build brand recognition to gain credibility and familiarity.
True
False
Reading the owner's manual, using the product as intended, and keeping the receipt are ways to . . .
protect and maintain your purchase
go into debt over an item
think through a purchase
avoid regretting an impulse purchase
Stuff doesn't equal _____. Debt makes people look better off than they _______.
wealth; actually are
investments; should be
happiness; deserve
income; want to be
Personal finance is 20% head knowledge and 80% ____________.
behavior
attitude
good intentions
motivation
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?
make snap decisions to buy products
be aware of when and where you’re being marketed to
stay off any form of digital media entirely
never buy anything online
If you're a victim of card fraud . . .
contact your bank immediately
wait until next week to contact your bank
wait for your bank to contact you
call 911 before making any other purchases
Contentment is hindered by ____________.
immediate gratification
delayed gratification
money principles
The Five Foundations
How is contentment—focusing on what you have rather than what you don't have—an important part of being a wise consumer?
It helps you avoid impulse purchases and overspending driven by envy.
It encourages taking on debt to buy more wants.
It makes you buy more so you feel satisfied.
It has no impact on spending decisions.
Which of the following are phases in the impulse purchase cycle? Select all that apply.
desire or trigger
justification
purchase
regret or buyer’s remorse
warranty registration
Retailers spend a large share of their annual budget on marketing strategies. Which strategies are commonly used to influence consumer behavior? Select all that apply.
social media influencer endorsements
product placement in shows and videos
targeted digital ads and tracking
sales promotions such as limited-time discounts
email and text marketing campaigns
Which of the following are examples of how a thief could commit card fraud? Select all that apply.
skimming card data at an ATM or gas pump
phishing emails or texts to steal card information
using stolen card numbers to make online purchases
installing malware on payment terminals
setting up purchase alerts on your account
What are two questions smart spenders ask before making a purchase? Select all that apply.
Do I need this?
Can I afford this without debt?
Will my friends be impressed?
Can I hide this purchase from my parents?
Why are people more likely to overspend when they don't pay with cash?
Cards and digital payments reduce the pain of paying and make it easier to lose track of spending.
Cash payments increase fees, so people spend more.
Merchants give bigger discounts only to cash users.
People always spend the same regardless of payment method.
How does having a budget help you avoid the traps of digital marketing?
It sets clear spending limits and priorities, making impulse purchases less likely.
It gives you unlimited funds to spend on advertised items.
It guarantees you won’t see any ads online.
It replaces the need to plan your purchases.
