Financial Responsibility Answers

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3

Which statement describes a disadvantage of Marnie paying a bill by telephone with a credit card or a debit card?

A
Marnie will not have to find a stamp and a mailbox.
B
Marnie will have to share her card account information.
C
Marnie’s bill is paid immediately.
D
Marnie may be eligible for a discount.
4

Which person made the best payment decision for their preferences?

A
Sean decides to pay his bills online because he does not like the inconvenience of finding stamps and mailing his bills.
B
Maria decides to pay her bills by mailing a check because she wants the payment to be credited in the shortest amount of time.
C
Jonah decides to pay his bill by telephone because he wants to protect his account information.
D
Shawna decides to set up automatic withdrawals to pay her bills because she does not want to have to remember to keep enough money in her checking account.
5

Lakesha does not have enough in her bank account to use a debit card for the purchase of a bike she needs to get to work. She has to decide whether to use a credit card or to finance the bike through the store. Which questions should Lakesha answer before making her decision? Check all that apply.

A
Will this cause my bank account to have a negative balance?
B
What is the difference in the finance charges for the two choices?
C
How much will the bike cost when adding the finance charges to the price?
D
Should I talk to a consumer credit counseling service?
E
Can I pay at least the minimum payment each month?
F
Will I be able to make the payments and avoid late fees?
6

Which is a possible benefit of having a good credit history?

A
getting a high interest rate on a credit card offer
B
obtaining a low interest rate on a loan
C
obtaining a savings account
D
having a paycheck garnished
7

Barbara has $70.00 in her pocket and a $20 gift card. Which purchase will she be able to make without having to use her credit card?

A
a portable radio for $65.95 and speakers for $29.99
B
five books for $18.95 each
C
headphones for $25.99 and eight CDs for 8.99 each
D
six puzzles for $11.99 each and a board game for $15.89
8

What might you expect to find out about people who are described as credit risks?

A
They are usually given a low interest rate.
B
They have a history of not making their payments on time.
C
They find it easy to get a loan from the bank.
D
They have a history of paying in full each month.
10

Veronique and Lily each bought a piece of luggage that had the same price in different stores. The table below shows how they will pay for the item. Payment for PurchasesNamePayment TypePayment Amount (Including Finance Charges)Number of Months to Pay for ItemVeroniqueStore financed$2510LilyCredit card$357Who made the better financial decision and why?

A
Veronique because her payments are lower.
B
Veronique because her final cost, including finance charges, is less than Lily’s.
C
Lily because she is paying off her purchase sooner.
D
Lily because her final cost, including finance charges, is less than Veronique’s.

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