Bargain Shopping

Question 1

Process by which the holder of a mortgage sells the property of a homeowner who has not made interest and/or principal payments on time as stipulated in the mortgage contract

Answer 1

foreclosure

Question 2

A public sale in which property or items of merchandise are sold to the highest bidder

Answer 2

auction

Question 3

Having to do with a person’s honesty and moral attributes

Answer 3

integrity

Question 4

Store return policies must balance customer service and profits. As a consumer, to ensure the best possible store return process, you should:

Answer 4

1. Familiarize yourself with the storeʹs return policy prior to your purchase
2. Hold on to your receipt and keep the labels and price tags on the item
3. Return the item to the store as quickly as possible

Question 5

“The Lucky Sevenʺ rules can get you incredible deals on the stuff you buy every day, but they only work if you:

Answer 5

use them

Question 6

Which of the following is true about the ʺIf Iʺ take-away technique?

1. Use this technique prior to negotiating price.
2. This technique involves negotiating the lowest price possible, then throwing something else into the deal.
3. This technique should only be used when the ʺgood guy, bad guyʺ technique is used on you.
4. This technique is meant to take advantage of the other person in the negotiation.

Answer 6

This technique involves negotiating the lowest price possible, then throwing something else into the deal.

Question 7

Which of the following is not recommended when selling something you own?

Answer 7

Find an uninformed buyer and charge the highest price possible.

Question 8

Shopping for bargains is part of a healthy financial plan because it makes your hard -earned money go further.

Answer 8

true

Question 9

The exchange of goods or services without the use of money

Answer 9

barter

Question 10

Excluding the United States, most countries use negotiating as a way of life.

Answer 10

true

Question 11

The ability to walk away from a purchase when negotiating

Answer 11

walk-away power

Question 12

Type of yard sale with more items, usually the entire contents of a household

Answer 12

estate sale

Question 13

Which of the following is not recommended if you are trying to make your money go further?

1. Buying clothing at end-of-the-season sales
2. Negotiating for a lower price
3. Buying only name-brand products
4. Comparison shopping

Answer 13

Buying only name-brand products

Question 14

When buying things at an auction, it is important that you:

Answer 14

1. Familiarize yourself with the item you want to purchase (quality, condition, age, etc.),
2. Donʹt get caught up in the excitement and end up paying more than retail price,
3. Set a limit on the amount you are willing to pay

Question 15

The difference between the wholesale price and retail price

Answer 15

markup

Question 16

The Federal Trade Commission found that people who reported having more debt than they could handle were more likely to be victims of consumer fraud involving:

Answer 16

Credit repair and debt consolidation

Question 17

To bargain for a lower price

Answer 17

negotiate

Question 18

In certain circumstances, it is okay to stretch the truth to get a bargain.

Answer 18

false

Question 19

Which of the following describes why using cash is a great bargaining tool?

Answer 19

1. Cash is emotional,
2. Cash is visual,
3. Cash has immediacy.

Question 20

Which of the following statements is false?

1. Negotiation involves a conversation of back-and-forth, give-and-take.
2. A great deal often just happens by accident.
3. If negotiation is done correctly, it will end up being a win -win deal.
4. Just asking for a great deal doesn’t always mean that you’ll get one.

Answer 20

A great deal often just happens by accident.

Question 21

If you’re trying to buy something, it’s not your job to come up with a good price. Make the seller work for your business.

Answer 21

true

Question 22

Being married (or emotionally attached) to a purchase will cause you to lose bargaining power.

Answer 22

true

Question 23

Making informed choices as a consumer will usually yield savings.

Answer 23

true

Question 24

The process of quantifying costs and benefits of a decision

Answer 24

cost-benefit analysis

Question 25

Retail store where people sell items and the owner of the shop gets a percentage of the sale

Answer 25

consignment shop

Question 26

Learning to be quiet is actually a powerful tool in negotiation.

Answer 26

true

Question 27

the good guy, bad guy technique is a negotiating tool that you should be aware of.

Answer 27

true

Question 28

Getting the best deal on a purchase involves doing all of the following except: 1. Being first in line for a new product 2. Having patience 3. Negotiating 4. Shopping around to find the best deal

Answer 28

Being first in line for a new product

Question 29

Joe tries to bargain at an electronics store but is unable to negotiate the price down. What should be his next step?

Answer 29

walk away

Question 30

Most of the items at a pawnshop are stolen.

Answer 30

false

Question 31

Which of the following is typically not a good place to find a deal?

Answer 31

mall

Question 32

Which of the following statements is false? 1. Using a cost-benefit analysis approach to your buying decisions will make you a wise consumer. 2. Your choices as a consumer have no impact on the larger social environment. 3. In addition to economic savings, wise consumers also enjoy improved health and have a positive impact on the larger social and even global environment. 4. Being a wise consumer involves developing a variety of skills, from product research to careful comparative analysis.

Answer 32

Your choices as a consumer have no impact on the larger social environment.

Question 33

Using cash gives you more bargaining power than using credit.

Answer 33

true