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Basics Beginner:
Things to Ask Yourself about Large Purchases
Test your knowledge
Choose wisely. There is only one correct answer to each question.
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Review your answers below to learn more.
1.
When considering major purchases, its always best to buy new products.
Choose wisely. There is only one correct answer.
True
False
False. Very often one can afford more bells and whistles by considering used products.
2.
A luxury item is typically a _______.
Choose wisely. There is only one correct answer.
Need
Want
Neither
Want. Luxury items are typically not necessities and are therefore wants.
3.
Which answer is most correct regarding the use of credit when making a major purchase?
Choose wisely. There is only one correct answer.
Because of the high interest rates, credit cards should never be used.
Credit cards can be used to establish credit or to reestablish credit.
Credit cards might be used when an emergency necessitates making a purchase immediately.
B and C
B and C. All efforts should be made to avoid using credit cards, but there are occasions when they can and should be used.
4.
One advantage of buying a major purchase used instead of new is that you dont need to wait until youve saved up the money for the new one.
Choose wisely. There is only one correct answer.
True
False
True. Not only can you have it now and save money, but with some items you can get some kind of warranty.
5.
The definition of "large purchase" is standard and accepted by everyone.
Choose wisely. There is only one correct answer.
True
False
False. The definition varies according to people, families, and businesses, often by their economic conditions.
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