CWMC Module 4: Big-Ticket Purchases Competency Test

2.

If purchasing a major item from a door-to-door salesperson, remember to: (check all that apply)

Always be careful when allowing strangers into your home
Never buy on impulse. Ask the seller to come back when you’ve had time to consider the purchase.
Never give out personal or financial information, including your credit card or bank account number, unless you have checked the seller's reputation and history with the BBB
Never sign a contract or anything with blank spaces left
Never be pressured or rushed into a purchase

Correct Answer(s)

A. Always be careful when allowing strangers into your home
A. Never buy on impulse. Ask the seller to come back when you’ve had time to consider the purchase.
A. Never give out personal or financial information, including your credit card or bank account number, unless you have checked the seller's reputation and history with the BBB
A. Never sign a contract or anything with blank spaces left
A. Never be pressured or rushed into a purchase

Explanation

When purchasing a major item from a door-to-door salesperson, it is important to be cautious and take certain precautions. Always be careful when allowing strangers into your home to ensure your safety. Never buy on impulse and ask the seller to come back when you've had time to consider the purchase, as this will prevent making hasty decisions. It is crucial to protect your personal and financial information, so never give out your credit card or bank account number unless you have verified the seller's reputation and history with the BBB. Additionally, never sign a contract or any document with blank spaces left, as this can lead to potential issues. Lastly, never be pressured or rushed into making a purchase, as it is important to make an informed decision.

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3.

If you are short on cash and want to buy a big ticket item, consider:

Using Rent-To-Own services
Obtaining cash from a Payday Loan Agency
Waiting until you can afford the purchase
Borrowing from your 401(k) account
None of the above

Correct Answer

A. Waiting until you can afford the purchase

Explanation

Waiting until you can afford the purchase is the best option because it avoids incurring additional debt or financial obligations. Rent-To-Own services and Payday Loan Agencies often come with high interest rates and fees, making the cost of the item much higher in the long run. Borrowing from your 401(k) account should be avoided as it can have negative consequences on your retirement savings. Therefore, waiting until you have enough money to make the purchase without borrowing or incurring debt is the most financially responsible choice.

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4.

All of the following are pitfalls of the "No payments, no interest until Jan. 1” offer except:

Ability to use purchased items long before the payments are due
It can negatively impact credit scores
Employee may not have the money to pay for the item before the “free” period ends
Interest rates after the “free” period are generally very high
Interest accrues from the day of purchase and is charged if the item is not paid off before the “free” period ends

Correct Answer

A. Ability to use purchased items long before the payments are due

Explanation

The ability to use purchased items long before the payments are due is not a pitfall of the "No payments, no interest until Jan. 1" offer. This means that customers can enjoy and utilize the items they have purchased without having to make immediate payments.

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5.

In today’s economy, employees will find: (check all that apply)

It may be a smarter decision to hold off on big-ticket purchases
There may be some great deals available from vendors trying to unload inventory
It could be more difficult to obtain financing for big-ticket purchases
Interest rates may be very high

Correct Answer(s)

A. It may be a smarter decision to hold off on big-ticket purchases
A. There may be some great deals available from vendors trying to unload inventory
A. It could be more difficult to obtain financing for big-ticket purchases
A. Interest rates may be very high

Explanation

In today's economy, employees may find that it is a smarter decision to hold off on big-ticket purchases because of the uncertain financial situation. They may also find that there are great deals available from vendors trying to unload inventory, as businesses may be struggling to sell their products. Additionally, it could be more difficult to obtain financing for big-ticket purchases due to stricter lending requirements. Lastly, interest rates may be very high, making it less affordable to finance big-ticket purchases.

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6.

When creating a response to an employee Money Coaching question, Web site links are:

Not necessary
Helpful only for people who have a home computer
Optional in your final document
Required in your final document
None of the above

Correct Answer

A. Required in your final document

Explanation

Web site links are required in the final document when creating a response to an employee Money Coaching question. This suggests that including web site links is essential for providing comprehensive information and resources to the employee. It implies that the web site links are necessary for the employee to access additional information or tools related to money coaching.

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7.

Which of the following goals should NOT be a primary focus when answering an employee’s Money Coaching question:

Will your answer save the employee money?
What cautions or pitfalls can you share for the employee to avoid?
Will this information be valid next year?
Is your reply motivating and encouraging?
None of the above. All of these should be focused on when answering an employee's question.

Correct Answer

A. Will this information be valid next year?

Explanation

The focus when answering an employee's Money Coaching question should not be on whether the information will be valid next year. This suggests that the information provided may not be applicable or useful in the future, which is not ideal when offering financial guidance. Instead, the primary focus should be on saving the employee money, sharing cautions or pitfalls to avoid, and providing a motivating and encouraging reply.

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8.

When purchasing used big-ticket items, great deals are available: (check all that apply)

On www.eBay.com
On www.craigslist.com
At garage sales
In weekend newspaper ads
At the major big-box retail stores

Correct Answer(s)

A. On www.eBay.com
A. On www.craigslist.com
A. At garage sales
A. In weekend newspaper ads

Explanation

When purchasing used big-ticket items, great deals are available on websites such as eBay and Craigslist, as well as at garage sales and through weekend newspaper ads. These platforms provide opportunities for individuals to sell their used items at lower prices compared to buying from major big-box retail stores. Therefore, by checking these sources, one can find good deals on used big-ticket items.

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9.

Which of the following do retailers generally suggest as the best time to shop at department stores for the biggest bargains?

All day on Fridays
Wednesday mornings
Saturday evenings
No day is generally any better than another

Correct Answer

A. Saturday evenings

Explanation

Retailers generally suggest Saturday evenings as the best time to shop at department stores for the biggest bargains. This is because many department stores tend to have sales and promotions during the weekends, particularly on Saturday evenings, to attract more customers. Additionally, Saturday evenings are often less crowded compared to other times, allowing shoppers to have a more relaxed and enjoyable shopping experience.

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10.

Lemon laws protect consumers:

In only a few states
Only when purchasing a car
Against obvious defects directly from the manufacturer
None of the above

Correct Answer

A. Against obvious defects directly from the manufacturer

Explanation

Lemon laws protect consumers against obvious defects directly from the manufacturer. These laws are designed to provide legal recourse to consumers who have purchased a defective product, such as a car, and are unable to get it repaired or replaced by the manufacturer. Lemon laws vary by state, but they generally require the manufacturer to either refund the purchase price or provide a replacement vehicle if the defect cannot be fixed within a certain number of attempts or within a specific time period. These laws aim to ensure that consumers are not stuck with faulty products and have legal protection in such situations.

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Cwmc Module 4: Big-ticket Purchases Competency Test

Employees can save money on big-ticket purchases except when they:

Quiz Preview

If purchasing a major item from a door-to-door salesperson, remember to: (check all that apply)

If you are short on cash and want to buy a big ticket item, consider:

All of the following are pitfalls of the "No payments, no interest until Jan. 1” offer except:

In today’s economy, employees will find: (check all that apply)

When creating a response to an employee Money Coaching question, Web site links are:

Which of the following goals should NOT be a primary focus when answering an employee’s Money Coaching question:

When purchasing used big-ticket items, great deals are available: (check all that apply)

Which of the following do retailers generally suggest as the best time to shop at department stores for the biggest bargains?

Lemon laws protect consumers: