Quiz Questions on Financial Planning and Large Purchases

Other than a car, what are some common large purchases that offer financing or payment options you should avoid? List at least two examples.

Answer: Housing Expenses, Medical Bills.
Explanation: Apart from cars, housing expenses and medical bills are common significant purchases that often offer financing or payment options. It's advisable to avoid relying on these financial arrangements, as they can lead to additional costs and debt. Planning and saving in advance for housing and medical expenses can help you avoid unnecessary financial stress.

If you need to save $1,000 for a new laptop and you’ll need it in six months, what would your weekly savings goal need to be?

Answer: $38.46.
Explanation: To save $1,000 for a new laptop within six months, your weekly savings goal should be approximately $38.46. By consistently setting aside this amount each week, you can reach your financial goal within the specified timeframe.

If you start saving and paying cash for large purchases early in life, how will that help you later in life?

Answer: Starting to save early and paying for major expenses in cash will help build substantial savings and ensure financial stability, particularly during retirement.
Explanation: Starting to save and pay cash for large purchases early in life enables compounding interest to work in your favor, leading to substantial wealth growth over time, ensuring financial stability and security in later years, especially during retirement.

What are the advantages of saving up for large purchases?

Answer: The advantages of saving up for large purchases include financial security, lower costs, and flexibility and freedom.
Explanation: Saving up for large purchases offers financial security by providing readily available funds, reduces costs by avoiding interest payments on loans, and provides flexibility and freedom in making purchasing decisions, allowing for negotiation and better deals.

Which of the following safety and privacy features is not included in a P2P app or service?

Answer: The non-inclusion of a representative call for confirming payments over $100 is a safety and privacy feature not included in a P2P app or service.

What might be the benefit of setting up a recurring payment through online bill pay?

Answer: Setting up recurring payments through online bill pay ensures automatic, hassle-free bill settlements, enhancing efficiency and reducing the risk of missed payments.
Explanation: By establishing recurring payments online, users can automate regular bill settlements, saving time and effort. This method eliminates the need for manual intervention, minimizing the chance of overlooking payments and incurring late fees. The convenience of automated transactions enhances financial organization and ensures timely, stress-free bill payments.

The price of a single item within a group of items is known as the ______________ of the item.

Answer: The price of a single item within a group of items is known as the unit price of the item.

How many days does the card issuer have to acknowledge that it received notice of an error?

Answer: The card issuer must acknowledge receipt of a billing error notice within 30 days.
Explanation: The card issuer must acknowledge receipt of a billing error notice within 30 days after it is sent by the cardholder. If a cardholder disputes a billing error in writing, the issuer is required to respond with a billing error notice within this 30-day timeframe, as per the provided information.