Consumerism & Banking
What agency should be contacted if a company uses false or deceptive advertising?
a. FTC - Federal Trade Commission
b. FDA - Food and Drug Administration
c. CPSC, Consumer Product Safety Commission
a. FTC - Federal Trade Commission
What is a co-signer responsible for?
Paying the debt if the borrower does not pay
What type of savings institution is nonprofit, owned by its members, and limited to people with a common bond?
Credit union
What is a deductible?
The amount a person pays out of pocket before insurance pays
What does it usually mean when a product is sold "as is"?
It has no warranty
If a lost credit card is used without permission, what is the most the cardholder is usually liable for?
$50
Which investment is usually considered the most liquid: land, mutual fund, savings account, or certificate of deposit?
Savings account
What type of auto insurance helps pay for damage to your own car after a crash?
Collision insurance
Most bank accounts are insured by what organization?
FDIC
What is repossession?
When a creditor takes back an item because the borrower did not pay
Ownership in a corporation is represented by what?
Stocks
What type of auto insurance pays for damage you cause to another person's car?
Liability insurance
What is an outstanding check?
A check that has been written but has not yet cleared the bank
What is a subprime loan?
A loan with a higher interest rate offered to borrowers with low credit scores
What is diversification?
Spreading investments among different types of investments or industries
What type of health insurance plan usually gives more flexibility in choosing doctors?
PPO
What is direct deposit?
When an employer deposits wages directly into an employee's bank account
What are the 3 Cs of Credit?
Capital, Capacity, and Character
What type of stocks are issued by large corporations with long, steady records of paying dividends?
Blue chip stocks
What type of life insurance covers someone for a specific number of years?
Term life insurance