Question 1

A credit purchase with 24 monthly payments of $78 and a down payment of $120 would have a total cost of:

Accepted Answer

(24 F1F1F1S1F1F1F10$78) + $120 = $1,992

Question 2

Brian Williams has a piece of paper that he gives to the cashier when he purchases a particular item that allows him to get a dollar off the cost of that item.What is he most likely using?

Accepted Answer

A coupon is a piece of paper or a code that provides a discount or a specific promotion for a particular item. In this scenario, Brian Williams has a coupon that allows him to get a dollar off of the cost of a specific item that he purchases.

Question 3

Gina Raffetto's car broke down on the way to work,and her mechanic has told her that the car cannot be fixed.Gina drives 30 miles one way to work each day.There is no reliable bus or train transportation that goes anywhere near her work.Gina decides she needs a car for reliable transportation to work.What step in the purchasing process is Gina carrying out?

Accepted Answer

Gina is identifying the problem that she needs a reliable means of transportation to work, which is the first step in the purchasing process.

Question 4

Brad Hayden has a piece of paper that guarantees the conditions,under which he can return,replace,or repair an item that he has purchased.What is it he most likely has?

Accepted Answer

A warranty is a guarantee or promise made by a seller or manufacturer to repair, replace or refund a product within a certain period of time. It ensures that the consumer can return the product if it's defective or doesn't meet stated expectations in some way.

Question 5

Margaret Wilson has a piece of paper that she can mail in to the manufacturer of the product that she just purchased.It allows her to get part of her purchase price back.What is she most likely using?

Accepted Answer

A rebate is a refund or partial refund of the purchase price of a product. In this case, Margaret Wilson has a piece of paper that she can mail in to the manufacturer to get part of her purchase price back, which is likely a rebate offer. A coupon is a discount offer on a product or service. A warranty is a guarantee that the product will meet certain standards of quality and performance. An indenture is a legal contract, and a service contract is an agreement to provide maintenance or repair services for a product.

Question 6

This scam uses e-mail spam or pop-up messages to deceive you into revealing your credit card number,bank account information,social security number,passwords,or other personal information is called:

Accepted Answer

This type of scam is specifically designed to trick users into divulging their personal and financial information, usually through fake emails or deceptive links. The scammers typically pose as legitimate companies or organizations, encouraging users to click on a phony link that leads to a fake login page or a site that asks for sensitive information. Once the user provides this information, the scammers can use it to commit identity theft or fraud.

Question 7

Lorenzo Clowder has settled on purchasing a new Honda Accord and has found that the suggested retail price is $22,200 and that the dealer's invoice price is $19,980.It is time for him to go to a dealer and negotiate the price he will pay for his new car.What step in the purchasing process is Lorenzo carrying out?

Accepted Answer

Lorenzo is determining the purchase price by researching the suggested retail price and dealer's invoice price, and negotiating with the dealer. This is the step in the purchasing process where the final price is agreed upon.

Question 8

Regular vehicle maintenance is essential to extending the life of your car.Engine oil should be changed approximately every _______ miles,depending on recommendations for the vehicle.

Accepted Answer

Most vehicles require an oil change every 3,000 - 5,000 miles, so it is best to follow the manufacturer's recommendation for your particular vehicle. Waiting too long to change the oil can lead to engine damage and other costly repairs.

Question 9

Which of the following is least likely to assist you in timing purchases to help you obtain bargains?

Accepted Answer

Time zones have the least direct impact on obtaining bargains compared to changing economic conditions, weather reports, political conflicts, and crop failures, which can all significantly affect market prices and availability of goods.

Question 10

An online buying club requires an annual fee of $60 in order to qualify for a 15 percent discount on purchases.What amount would a person have to buy in order to save enough to cover the cost of the membership?

Accepted Answer

(15%)(x) = $60; x = $60/.15 = $400

Question 11

Emily is trying to decide whether to lease or buy a car.Which one of the following is not a factor necessary in making the comparison?

Accepted Answer

Gasoline costs may not necessarily vary significantly between leasing and buying a car and are not a primary determinant in making the decision. The other factors listed are important in comparing the costs of leasing vs. buying a car.

Question 12

A motor vehicle has annual depreciation of $2,000; oil changes cost $120,automobile insurance $500 annually,and license plates costs $100.What is the annual amount of the total fixed operating cost for this vehicle?

Accepted Answer

Fixed costs = $2,000 + $500 + $100 = $2,600

Question 13

Which of the following would be an advantage of leasing a vehicle?

Accepted Answer

Leasing a vehicle generally results in lower monthly payments compared to financing a purchase with a loan. This can be an advantage for individuals who prefer to have lower monthly expenses. The other options are not advantages of leasing a vehicle.

Question 14

The price that is paid for a vehicle in a lease is called the:

Accepted Answer

The price paid for a vehicle in a lease is known as the capitalized cost. This includes the cost of the vehicle, any fees, and taxes. The capitalized cost determines the monthly lease payments.

Question 15

Isabel would spend $200 per week on groceries for her family if she did not use coupons.Her coupons save her 10 percent of that amount.She puts the amount saved into her savings account.How much will she have in her savings account at the end of the first year? Ignore interest earnings.

Accepted Answer

$200 F1F1F1S1F1F1F10.10 = $20; $20 F1F1F1S1F1F1F1052 weeks = $1,040

Question 16

Damian Walker just purchased a new vehicle.He is reading his owner's manual to know when he needs to take it in for its regular servicing at the dealer.He wants to make sure this car lasts a while.What step in the purchasing process is Damian carrying out?

Accepted Answer

Damian is engaging in post-purchase activities, which include actions taken after buying a product, such as reading the owner's manual to understand maintenance schedules. This step is crucial for ensuring the longevity and optimal performance of the vehicle.

Question 17

Tiffany Parrish has purchased a new car.Since then she has had to make six trips to the dealer in four weeks to fix several major problems without much luck.She knows that she is entitled to a refund.What type of law gives her the right to ask for a refund?

Accepted Answer

The Lemon Law provides protection to consumers who purchase defective goods or products, including cars. It allows the consumer to request a refund or replacement if the defect cannot be fixed after a reasonable number of attempts.

Question 18

Sally Nash has decided she needs a new car.After doing some research,she has settled on a midsized four door sedan.She likes the Honda Accord and is exploring the features she needs and wants on this car.She is also trying to decide whether she would be better off purchasing a new car,a used car,or leasing a car.She knows that if she purchases it new it would likely last her for many,many years.On the other hand a used car would be a lot cheaper.She is not sure a lease is for her because of the mileage requirements.What step in the purchasing process is Sally carrying out?

Accepted Answer

Sally is comparing the options of buying new, buying used, or leasing a car, which is part of evaluating alternatives in the purchasing process.

Question 19

Hector Ramirez has decided he needs a new car so that he has reliable transportation to work.He is getting recommendations from his friends as to what might be a good car to purchase.He is also looking at the Consumer Reports magazine to determine what they recommend as a safe,low maintenance car,and he has searched some web sites on the internet as well.What step in the purchasing process is Hector carrying out?

Accepted Answer

Hector is in the information gathering stage of the purchasing process, where he is seeking recommendations from friends, consulting Consumer Reports, and searching websites to find the best car for his needs. He has already identified that he needs a new car for reliable transportation to work. Therefore, option B is the correct choice.

Question 20

Stephanie Johns is a member in a store that is a nonprofit organization that buys grocery items in bulk.Members can save a considerable amount on the groceries they purchase in the store.Stephanie is most likely shopping in which type of store?

Accepted Answer

Stephanie is most likely shopping in a cooperative store, which is a type of nonprofit organization where members can save money by buying goods and services in bulk. This description matches the characteristics of a cooperative store. None of the other options seem to fit with the given information.

Quiz 8: Consumer Purchasing Strategies and Legal Protection