Personal Finance Chapter 6--2015

1.

1 point

13) Which of the following should you consider when making a significant purchase?

A) Your buying motives

B) If you canʹt pay with cash, donʹt buy it

C) The opportunity cost

D) All of the above

2.

1 point

14) Which of the following is not a form of product positioning?

A) Shelf positioning

C) Financing

B) Packaging and color

D) Brand recognition

3.

1 point

2) The purpose of advertising is to:

Tease the consumer

Inform the consumer

Persuade the consumer

All of the above

4.

1 point

9) Identify which method companies are using to compete for your money: Car salesman

D) Product positioning

C) Media

A) Personal selling

B) Financing

5.

1 point

17) Never buy something you do not fully understand.

True

False

6.

1 point

16) A good salesperson will answer a question with a question.

True

False

7.

1 point

25) Zero percent financing is nothing more than a really good marketing tool.

True

False

8.

1 point

10) Identify which method companies are using to compete for your money: TV commercials

C) Media

B) Financing

D) Product positioning

A) Personal selling

9.

1 point

20) Inflation has no effect on your buying power.

True

False

10.

1 point

12) Dave tells the story of a man who bought his dream car, drove it home, but then returned it the next day after some money calculations. This story is an example of:

B) ʺBe backsʺ in the car business

C) Buyerʹs remorse

D) Opportunity cost

A) Brand recognition

11.

1 point

he amount of stuff a person has is directly related to contentment and happiness.

True

False

12.

1 point

4) When a company places an ad and offers no interest on your purchase for three years:

D) They are expecting you not to pay for the purchase within three years

C) The cost of the financing is built into the price of the item

B) They are showing their appreciation to you by giving you free money

A) They are not interested in making a profit

13.

1 point

22) You should never wait overnight before making a big purchase if there is only one item left.

True

False

14.

1 point

3) Which of the following is not a common marketing strategy?

A) Providing financing options

C) Making the customer do product research

D) Personal selling

B) Repetition

15.

1 point

5) What is a safe assumption to make regarding companies and their marketing practices?

A) Companies know that competition is fierce for consumer dollars.

B) Companies spend millions of dollars and do extensive research on advertising.

C) Companies use all angles to aggressively compete for your money.

D) All of the above

16.

1 point

21) A budget has little effect on a personʹs financial success unless he or she also develops power over purchase.

True

False

17.

1 point

23) Teens have cited ʺfriendsʺ as the strongest influence over their purchase decisions.

True

False

18.

1 point

11) Four common marketing tactics are:

A) Repetition, buyerʹs remorse, product positioning, significant purchase

C) Branding, personal selling, opportunity cost, financing

B) Competition, financing, opportunity cost, personal selling

D) Personal selling, financing, repetition, product positioning

19.

1 point

8) Identify which method companies are using to compete for your money: Reputation for holding its value

A) Personal selling

C) Media

B) Financing

D) Product positioning

20.

1 point

6) What concept is best explained by the statement, ʺMoney spent here cannot be spent thereʺ?

C) Significant purchases

A) Law of diminishing return

B) Opportunity cost

D) Delayed gratification

21.

1 point

7) Identify which method companies are using to compete for your money: ʺ90-days-same-as-cashʺ

A) Personal selling

D) Product positioning

C) Media

B) Financing

22.

1 point

19) Young single adults should find an accountability partner with whom to discuss big purchases.

True

False

23.

1 point

24) Repetition has proven to be an ineffective marketing technique.

True

False

24.

1 point

1) Which of the following is not a need?

Eating out

Housing

Food

Utilities

25.

1 point

15) Which is not a ʺpower over purchaseʺ tactic?

A) Compare your purchase with a friendʹs

D) Seek counsel

B) Consider the opportunity cost

C) Wait overnight