Consumer Education Test - Fenger Academy High School



Consumer Education Test

1. Which of the following accurately explains the difference between cheap and frugal?

A. Cheap means you never spend any money, frugal means you spend very little money.

B. Cheap means you do not spend money to keep up with your friends, frugal means you do.

C. Cheap means that you buy generic brand clothes, frugal means you buy second hand clothes.

D. Cheap means you never spend money, frugal means you spend your money wisely.

2. Which of the following would NOT be considered a fixed cost?

A. Food

B. Nail Salon

C. Rent

D. The electric bill

3. Which of the following represents the most common mistake people make when looking for a job?

A. They do not follow up

B. They do not have a resume

C. They do not apply online.

D. They do not dress properly

4. When looking for a summer job, which of the following would a teen most likely be hired at?

A. A Gamestop

B. A Burlington Coat Factory

C. A summer camp for kids

D. A roller rink

5. What are the three things you should look for in a checking account or savings account?

A. No fees, a low APR, and a debit card

B. No fees, no minimums, the best APR possible

C. Convenience, a low APR, and a student program

D. A well-known name, convenience, and no minimums

6. If you are looking for an investment with low-risk and liquidity, which of the following would be the best option?

A. A mutual fund

B. A stock

C. A savings account

D. A bond

7. If someone wants an easy way to diversify their investment, they should probably choose

A. A mutual fund

B. A stock

C. A savings account

D. A bond

8. According to evidence, _________ has led many in the black community to be suspicious of banks and avoid financial tools that contribute to long-term wealth.

A. The lack of maturity among black people

B. The History of Segregation

C. The lack of banks in Black communities

D. Insurance policies.

9. Which of the following DOES NOT describe difference between a 401k and a Roth IRA

A. A 401k has you pay a penalty if you withdraw any money early and a Roth IRA allows you to withdraw the principle penalty-free.

B. You get a 401k from your employer; you get a Roth IRA at a bank or other financial institution.

C. A 401k contains no risk, a Roth IRA does

D. In a 401k you typically choose from a small amount of investment choices, in a Roth IRA you can put your money into whatever investment(s) you want.

10. The biggest advantage of using Roth IRA’s and/or 401ks

A. They help you avoid taxes.

B. They can be set up automatically

C. You can’t get your money until you are 55 and a half.

D. They automatically diversify your investment

11. Which of the following actions would NOT help you improve your credit?

A. Paying all your bills on time

B. Paying your credit card balance in full, each month.

C. Applying for new lines of credit often

D. Paying off your college loans

12. How will a bad credit score influence a loan?

A. Your APR will be higher

B. Your APR will be lower

C. You will automatically have to borrow more

D. You will certainly be denied the loan

13. Which of the following is NOT a factor you should consider when choosing a credit card?

A. Are you responsible enough to pay your balance in full each month?

B. Are you choosing a card that offers rewards that you actually want?

C. What is the APR and are there fees?

D. Does the card offer “identify protection.”

14. Which of the following is the most likely reason someone gets into debt trouble

A. They’re irresponsible with money

B. There was an unexpected event that they had not planned or saved for.

C. They bought a car from a dealership with a high APR

D. They went to college and took a lot of student loans

15. What is NOT a reason why debt is different for the African American community?

A. Poor and African American communities often have more pawn brokers, shady car dealers, rent-to-own stores, and pay-day lenders that prey on the financially illiterate.

B. African Americans tend to spend money irresponsibly

C. Unemployment in poor African American communities is disproportionately higher than in other communities.

D. A higher percentage of African Americans have no medical insurance and are more vulnerable to emergencies.

16. Which of the following is NOT a reason why young people tend not to invest?

A. Culture trains them to focus on the results of being rich, but not how to get there.

B. Young people believe investing isn’t about picking stocks.

C. Young people think they don’t know how to pick stocks to invest.

D. They are scared because of the current recession

17. Which of the following is the FIRST advice you should give to someone trying to get out of debt?

A. Declare Bankruptcy

B. Stop creating more debt.

C. Call up your creditors and ask for a lower APR or somehow to pay off your debt early.

D. Contact a credit-counseling agency?

18. When you invest you want a _____ APR, when you take a loan you want a ______ APR.

A. high/low

B. low/high

C. annual/monthly

D. monthly/annual

19. When trying to find the best price on a big-ticket item, all of the following steps should be followed EXCEPT

A. Consider the time and season you are buying.

B. Comparison shop in stores, using the phone, and the Internet.

C. Ask friends and check the Internet for reviews of potential products.

D. Pay careful attention to advertisements.

20. When buying a used car, which of the following is the LEAST important step?

A. Check the carfax

B. Find the true value using the Internet

C. Consider your wants and needs carefully

D. Have an independent mechanic check the car

21. When buying a new car, you should do all of the following EXCEPT?

A. Buy during the end of the year when dealerships are looking to ditch last year’s models to make room for the new cars about to come in and salespeople are looking to meet quotas to make their bonuses.

B. Negotiate mercilessly using all the information you can obtain from websites and other dealerships.

C. Getting your loan from the car-dealership and not a bank or credit union.

D. Find a car that will last you a long time, at least 10 years.

22. Advertisers goal is for potential consumers to use their ____.

A. Brain

B. Friends

C. Emotion

D. Branding

23. A PowerAde commercial starts with film of Derrick Rose, flashes fancy images across the screens with words like “FAST and STRONG” and ends with a chart showing that “PowerAde is loaded with electrolytes.” This commercial is using all of the following advertising strategies EXCEPT:

A. Glittering Generalities

B. Testimony

C. The Big Lie

D. Card Stacking

24. Which of the following is NOT one of the 3 major categories that influence price?

A. Supply

B. Demand

C. Government

D. Everything else (externalities.)

25. Which of the following is an example of supply influencing fuel prices to increase?

A. A brand new and cheap fuel is discovered

B. An oil spill occurs

C. The government puts an extra tax on gasoline.

D. Chinese people buy more cars.

26. Which of the following is an example of demand influence fuel prices to increase?

A. The government launches a new offensive in the war in Afghanistan

B. An oil spill occurs.

C. The manufacturing process becomes cheaper after a new invention.

D. In large numbers, people give up their cars for bicycles and public transportation.

27. Which of the following is an example of an externality associated with price?

A. Pollution

B. The brand becomes very popular all of a sudden.

C. An oil spill occurs

D. Chinese people buy more cars.

28. Which of the following is a regressive tax?

A. Federal income tax

B. State income tax

C. Sales tax

D. Social Security tax

29. A sin tax would be placed on which of the following products?

A. Milk

B. Cars

C. Financial products

D. Cigarettes

30. To which source are the most tax dollars devoted?

A. Defense (the military)

B. Education

C. The Environment

D. Interest on the debt.

Essay: In a well-developed paragraph, respond to the following prompt:

Discuss what you have learned based on our investigation into the essential questions of Unit 5 and Unit 7 and how you will use this information moving forward.

|Category |2 points, I DID IT |1 point, I NEED WORK |0 points, I’m LAZY |

|Essential questions |Responds to at least 3 questions. |Responds to less than 3 questions |Responds to no questions. |

|Effectiveness of response. |Each question demonstrates knowledge |Less than 3 questions demonstrate knowledge of |No questions demonstrate knowledge of |

| |of classroom content. |classroom content. |classroom content. |

|Format |Response contains introduction, |Evidence has no introduction or no conclusion or |Writing demonstrates none of the qualities |

| |evidence with explanations, and |evidence and links. |associated with coherent writing. |

| |conclusion. | | |

|Personal Connection |Writing connects classroom content to|Writing attempts to connect classroom content to |Writing fails to make any connection |

| |personal examples. |personal examples. |(appears as if student is simply copying |

| | | |from class work.) |

|Length |At least 8 sentences |Less than 8 sentences |Less than 5 sentences |

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