Smart Money Management: Home and Automobile Decisions Quiz

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Questions and Answers

What is the single biggest investment most people will make according to the text?

Buying a home (correct)

Investing in stocks

Buying a car

Taking a loan

What is the first step in smart buying according to the text?

Maintain your purchase

Differentiate want from need (correct)

Do your homework

Make your purchase

What should you decide in advance before making a large purchase according to the text?

The refund or exchange policy

The price of the item

The extra charges for delivery

What you want and what you can afford (correct)

Which of the following is recommended before buying a big-ticket item according to the text?

Being aware of extra charges and adding them into the total cost Signup and view all the answers

What should you not assume about an item according to the text?

It is a bargain just because it is advertised as one Signup and view all the answers

What is the main objective of this lecture according to the text?

To help individuals make good buying decisions and choose housing that meets their needs Signup and view all the answers

What is the recommendation for dealing with high-pressure sales tactics?

Walk out or hang up on high-pressure sales tactics Signup and view all the answers

Why is it advised not to do business over the telephone with unknown companies?

It reduces the risk of fraud and scams Signup and view all the answers

What should you not rely on when making a purchase?

A salesperson's verbal promises Signup and view all the answers

Why is a written complaint letter recommended?

To provide a record of communication with the company Signup and view all the answers

What should be included in a complaint letter?

Copies of all documents regarding the problem Signup and view all the answers

Why is it advised to keep a record of efforts to contact the seller?

To track the progress of the complaint Signup and view all the answers

What is the purpose of including the name of the person contacted in the record of efforts to contact the seller?

To have a reference for future communication Signup and view all the answers

What is an essential step in buying a vehicle according to 'Smart Buying in Action'?

Inspecting only the exterior of the vehicle Signup and view all the answers

What should you know in order to get a fair price for a vehicle according to 'Smart Buying in Action'?

$10,000 dealer cost or invoice price Signup and view all the answers

What is the recommended action if you're using the company’s online complaint form?

$0 payment for submission Signup and view all the answers

Study Notes

Smart Buying

The single biggest investment most people will make is buying a home.

Smart Buying Strategies

First step in smart buying: define your needs and wants.
Decide in advance the features you want and how much you're willing to spend before making a large purchase.

Avoiding High-Pressure Sales

Research and comparison shop before buying a big-ticket item.
Don't assume that an item is the best or the only one available.

Dealing with Sales Tactics

Main objective: to make informed purchasing decisions.
When dealing with high-pressure sales tactics, take time to think and don't be rushed into a decision.

Avoiding Scams

Don't do business over the telephone with unknown companies to avoid scams.

Making a Purchase

Don't rely solely on a salesperson's promises or word when making a purchase.
Get everything in writing, including warranties and guarantees.

Filing a Complaint

Write a complaint letter to the company if you're not satisfied with a product or service.
Include the following in a complaint letter: a clear description of the problem, the steps you've taken so far, and the resolution you're seeking.
Keep a record of efforts to contact the seller, including the date, time, and name of the person contacted.
The purpose of including the name of the person contacted is to hold them accountable for any promises or actions.

Buying a Vehicle

Essential step in buying a vehicle: research the vehicle's market value.
Know the market value of a vehicle to get a fair price.

Online Complaint Forms

If you're using the company's online complaint form, also send a copy of the complaint to the company's customer service department.

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Description

Test your knowledge on making good buying decisions, choosing the right vehicle, deciding between renting and buying a home, and understanding the costs of buying a home and getting a mortgage. This quiz covers essential aspects of smart money management in relation to big ticket items.