Financial Responsibility Answers

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1
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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.
2
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Frank is worried about identity theft. He does not like to give access to his checking account to anyone but the bank. What is the best option for him to pay his bills?

A
Frank should telephone in his payment to the company.
B
Frank should pay his bill online.
C
Frank should set up automatic withdrawals for the company he is paying.
D
Frank should mail a check to the company.
4

Shondra is thinking of making payments for her laptop by setting up automatic withdrawals with the store. What must Shondra consider before she decides to pay with automatic withdrawals?

A
Shondra should be sure she will remember to call the store each month to make the payment.
B
Shondra should check her credit history to be sure she has a good credit score.
C
Shondra should be sure she will have enough in her account to be able to make the monthly payments.
D
Shondra should consult with a credit counseling service.
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

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.
8

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.
9

Which is a long-term consequence of making late payments on your bills?

A
It will be harder to secure a new loan at a low rate.
B
The balance in your checking account will be negative.
C
There will be a late fee.
D
The number of payments will increase.
10

Ted has $55.00 in his pocket. Which purchase will he be able to pay for with cash?

A
two books for $29.95 each
B
headphones for $29.99 and a portable speaker set for $30.95
C
an MP3 player for $35.99 and a $20.00 gift card for downloading music
D
three books for $16.99 each

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