Everfi Financial Literacy Assessment

Questions and Answers

When deciding what to buy, you should assume that buying the cheapest item is the smartest choice.

False

Making a good purchasing decision requires:

Comparing the prices of similar items

Reading reviews of the product

Waiting until the product is on sale, if possible

All of the above (correct)

When deciding what to buy, you should compare the unit price of items similar to the one you want.

True

How is an advertisement different from a comment from a regular consumer?

The advertisement is likely one-sided. Signup and view all the answers

How is a post from a social media influencer different than a comment from a regular consumer?

The influencer is paid to post the product. Signup and view all the answers

What is one of the best ways to get reliable information about a product?

Search online reviews. Signup and view all the answers

Which example shows an advantage of owning a car over leasing one?

No restrictions on the number of miles to drive and the ability to customize. Signup and view all the answers

Which of the following is NOT an advantage of owning a car?

Lower down and monthly payments than leasing a car Signup and view all the answers

What is the best reason for why someone would want to lease a house instead of buy one?

They are planning on living there for a short period of time. Signup and view all the answers

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

unit price. Signup and view all the answers

Why is figuring out the unit price of something useful when shopping?

It helps you determine the best deal. Signup and view all the answers

Which payment option is not accepted online?

Cash Signup and view all the answers

Which payment option takes money out of your bank immediately?

Debit Card. Signup and view all the answers

When making a large purchase, you should avoid everything EXCEPT:

A price that fits comfortably in your budget Signup and view all the answers

What are possible red flags or signs of a scam when buying a car?

All of the above Signup and view all the answers

Which of the following is NOT a warning sign of a scam when buying a car?

A price that fits comfortably in your budget Signup and view all the answers

Which of the following is NOT a useful strategy when making an informed purchase?

Purchasing based on a social media influencer Signup and view all the answers

How does a consumer know whether a purchase may be a good deal?

A large percentage of positive customer ratings offer detailed explanations. Signup and view all the answers

What can help you meet your budget while shopping for important items?

Prioritizing features to meet your needs. Signup and view all the answers

When comparison shopping, all of these hint at a good deal EXCEPT_____________________.

Lower-priced models offer more features. Signup and view all the answers

Making a good purchasing decision requires __________.

comparing prices and features. Signup and view all the answers

Which fact supports the idea that renting is a good option for living in a place for a short period of time?

Landlords take care of most maintenance. Signup and view all the answers

Which housing option gives you more freedom and more responsibility?

Buying a house. Signup and view all the answers

Leasing a car may be a better option than buying a car if...

you don't plan on having it for long and don't want to worry about regular maintenance. Signup and view all the answers

Which payment option can offer additional security like fraud protection?

Credit Card. Signup and view all the answers

Which method of payment actually is a form of borrowing money that needs to be paid back later?

Credit Card. Signup and view all the answers

Which forms of payment is linked to a bank account which limits the amount of money you can spend to balance in your account?

Checks & Debit Cards. Signup and view all the answers

Study Notes

Consumer Skills in Purchasing Decisions

Buying the cheapest item isn't always the smartest choice; consider quality and long-term value.
Good purchasing decision requires comparing prices, reading reviews, and waiting for sales.
Comparing unit prices is essential when deciding on similar products.

Understanding Advertisements and Consumer Opinions

Advertisements may present one-sided information; consumer comments can offer a balanced perspective.
Social media influencers may be paid for endorsements, impacting the authenticity of their recommendations.
Reliable product information can often be found through online reviews.

Car Ownership vs. Leasing

Advantages of owning a car include no mileage restrictions and freedom to customize.
A disadvantage of owning is typically higher down payments and monthly payments compared to leasing.
Leasing is preferable for those planning to stay for a short time, allowing flexibility.

Pricing and Payment Options

Unit price refers to the cost of a single item within a group and helps find the best deal.
Debit cards withdraw money immediately from bank accounts, unlike credit cards that allow borrowing.
Cash is not typically accepted for online purchases; secure payment options include credit cards.

Identifying Scams and Making Informed Purchases

Red flags in car buying can include surprise financing issues and excessive fees.
A budget-friendly price is not a scam indicator; it's often a sign of a fair deal.
Reliable purchase strategies should be based on thorough research, rather than influencer endorsements.

Consumer Ratings and Budget Management

Positive customer ratings with detailed reviews can indicate a good deal on a product.
Prioritizing features according to needs assists with budget management while shopping.
Good comparison shopping does not rely on lower-priced models offering more features as an indicator of value.

Housing and Maintenance Responsibilities

Renting is advantageous for short-term living since landlords typically handle maintenance.
Buying a house grants more freedom but comes with increased responsibilities.
Leasing a car is a viable option for those not wanting long-term commitment or maintenance concerns.

Payment Methods and Security

Credit cards provide additional security and fraud protection but function as borrowed funds needing repayment.
Debit cards and checks limit spending to account balance, promoting careful financial management.

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Description

Test your knowledge on consumer skills and financial literacy with this assessment quiz. Learn the importance of making informed purchasing decisions and comparing options to ensure you are making the best choices for your finances.