foundations in personal finance – chapter 7 test answers

Getting the best deal on a purchase involves doing all of the following except: Being first in line for a new product
Which of the following is typically not a good place to find a deal? Mall
Which of the following describes why using cash is a great bargaining tool? All of the above
Joe tries to bargain at an electronics store but is unable to negotiate the price down. What should 4) be his next step? Walk away
Which of the following statements is false? Your choices as a consumer have no impact on the larger social environment.
Which of the following is true about the ʺIf Iʺ take-away technique? This technique involves negotiating the lowest price possible, then throwing something elseinto the deal.
ʺThe Lucky Sevenʺ rules can get you incredible deals on the stuff you buy every day, but they 7) only work if you: Use them
The Federal Trade Commission found that people who reported having more debt than they 8) could handle were more likely to be victims of consumer fraud involving: Credit repair and debt consolidation
Which of the following is not recommended when selling something you own? Find an uninformed buyer and charge the highest price possible.
Store return policies must balance customer service and profits. As a consumer, to ensure the best 10) possible store return process, you should: All of the above
Which of the following is not recommended if you are trying to make your money go further? Buying only name-brand products
When buying things at an auction, it is important that you: All of the above
Which of the following statements is false? A great deal often just happens by accident.
Using cash gives you more bargaining power than using credit. TRUE
Being married (or emotionally attached) to a purchase will cause you to lose bargaining power. TRUE
Most of the items at a pawnshop are stolen FALSE
Learning to be quiet is actually a powerful tool in negotiation. TRUE
Shopping for bargains is part of a healthy financial plan because it makes your hard -earned 18) money go further. TRUE
In certain circumstances, it is okay to stretch the truth to get a bargain. FALSE
Excluding the United States, most countries use negotiating as a way of life. TRUE
Making informed choices as a consumer will usually yield savings. TRUE
If youʹre trying to buy something, itʹs not your job to come up with a good price. Make the seller 22) work for your business. TRUE
The good guy, bad guy technique is a negotiating tool that you should be aware of. TRUE
Process by which the holder of a mortgage sells the property of a homeowner who has not made interest and/or principal payments on time as stipulated in the mortgage contract (foreclosure, refund) foreclosure
The difference between the wholesale price and retail price (margin, markup) markup
Having to do with a personʹs honesty and moral attributes (integrity, impulsive) integrity
Type of yard sale with more items, usually the entire contents of a household (pawn shop, estate sale) estate sale
Retail store where people sell items and the owner of the shop gets a percentage of the sale (consignment shop, convenience store) consignment shop
The process of quantifying costs and benefits of a decision (cost-benefit analysis, purchase plan) cost-benefit analysis
A public sale in which property or items of merchandise are sold to the highest bidder (thrift store, auction) auction
To bargain for a lower price (window shop, negotiate) negotiate
The exchange of goods or services without the use of money (barter, bargain) barter
The ability to walk away from a purchase when negotiating (walk-away power, buyerʹs advantage) walk-away power

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