Financial Responsibility Answers

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Why might people choose to rent a home rather than buy a home?

A
They have a lot of money saved for a down payment.
B
The property maintenance is the owner's responsibility.
C
The interest rates on equity are too high.
D
They have a long-term commitment to the area.
2
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What is advertising used for? Check all that apply.influencing consumer tastestracking product popularityincreasing product awarenesspromoting company brandinggathering data about potential consumers

A
influencing consumer tastes
B
tracking product popularity
C
increasing product awareness
D
promoting company branding
E
gathering data about potential consumers
3

Which questions should someone ask when deciding whether to lease or buy a car? Check all that apply. Will I use it more than the allowed lease mileage?Will my family like the car?How long do I want the car?How much do I want to spend?How much do I like the car’s options?

A
Will I use it more than the allowed lease mileage?
B
Will my family like the car?
C
How long do I want the car?
D
How much do I want to spend?
E
How much do I like the car’s options?
4

Read the scenario.Raoul has just been promoted to a supervisor’s position, which is a steady job. He likes to enjoy life, take vacations, and change things up every now and then. That’s why he will not have a lot of extra money to spend on repairs and maintenance on his car.

A
buy a used car.
B
lease a used car.
C
buy a new car.
D
lease a new car.
5

Read the scenario.Brad has a steady job, earns a solid income, and plans to live in a nearby city for the long term. He is looking to purchase both a car and a place to live, and he is very interested in building up equity and credit.

A
buying both a car and a home
B
leasing both a car and home
C
buying a car and leasing a home
D
leasing a car and buying a home
6

At what point does buying in bulk stop being a wise spending choice?

A
when the consumer has a lot of space to store bulk items
B
when costs rise too quickly due to demand
C
when bulk items are not on sale anymore
D
when the consumer buys more than is needed
7

A monthly fixed rate mortgage payment

A
could change.
B
never changes.
C
increases annually.
D
decreases annually.
8

Why do prices increase when demand for a product is high?

A
Companies know they can make more money by selling fewer products at higher prices.
B
Companies know that people will be willing to spend more to get an in-demand product.
C
Companies take advantage of the demand to make people spend more money on excess products.
D
Companies know they can stop production and still make money on sales.
9

Which option below is not a potential risk of purchasing a used car?

A
used cars can require repairs sooner
B
shorter lifespans of the engine and transmission
C
used cars can have lower initial cost
D
unexpected issues may arise
10

When companies spend millions of dollars developing logos and slogans, or use celebrity endorsements to encourage consumers to buy particular products, this is called

A
false advertising.
B
undue influence.
C
product branding.
D
quality assurance.

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