Dave Ramsey Chapter 6

question

Explain why financing a purchase is a bad idea.
answer

It puts you at financial risk, causes you to pay more than the cost of the item, and prevents you from building wealth
question

Why should you always consider the opportunity cost when making a significant purchase?
answer

It gives you power over purchase and because money spent in one place can’t be spent in another
question

What are the five steps you should take before making a significant purchase?
answer

1) wait overnight 2) consider your buying motives 3) make sure you understand what you’re buying 4) consider the opportunity cost 5) seek wise counsel
question

What effect does inflation have on purchasing power?
answer

It means that your dollars buy less than they did in the past
question

Summarize factors that influence consumer decisions.
answer

Marketing, peer influence, brand recognition, opportunity cost, advice from others
question

Explain why consumer awareness is such an important part of a healthy financial plan.
answer

So you are able to know what the company is trying to do when they sell you something
question

Identify ways companies compete for your money.
answer

Personal selling, creative financing, repetition and product positioning
question

Identify which method companies are using to compete for your money: reputation for holding its value A) personal selling B) financing C) media D) product positiong
answer

B) financing
question

Identify which method companies are using to compete for your money: car salesman A) personal selling B) financing C) media D) product positioning
answer

A) personal selling
question

Identify which method companies are using to compete for your money: tv commercials A) personal selling B) financing C) media D) product positioning
answer

C) media
question

Four common marketing tactics are: A) repetition, buyers remorse, product positioning, significant purchase B) competition, financing, opportunity cost, personal selling C) branding, personal selling, opportunity cost, financing D) personal selling, financing, repetition, product positioning
answer

D) personal selling, financing, repetition, product positioning
question

Dave tells the story of a man who bought his dream car, drove it home, but then returned it the next day after some money calculations. This story is an example of: A) brand recognition B) “Be backs” in the car business C) buyer’s remorse D) opportunity cost
answer

D) opportunity cost
question

Which of the following should you consider when making a significant purchase? A) your buying motives B) if you can’t pay with cash, don’t buy it C) the opportunity cost D) all of the above
answer

D) all of the above
question

Which of the following is not a form of product positioning? A) shelf positioning B) packaging and color C) financing D) brand recognition
answer

C) financing
question

Which is not a “power over purchase” tactic? A) compare your purchase with a friend’s B) consider the opportunity cost C) wait overnight D) seek counsel
answer

A) compare your purchase with a friend’s
question

Which of the following is not a need? A) housing B) eating out C) utilities D) food
answer

B) eating out
question

The purpose of advertising is to: A) tease the consumer B) inform the consumer C) persuade the consumer D) all of the above
answer

D) all of the above
question

Which of the following is not a common marketing strategy? A) providing finance options B) repetition C) making the customer do product research D) personal selling
answer

C) making the customer d product research
question

When a company placed an ad and offers no interest on your purchase for three years: A) they are not interested in making a profit B) they are showing their appreciation to you by giving you free money C) the cost of the financing built into the price of the item D) all of the above
answer

C) the cost of financing is built into the price of the item
question

Young single adults should find an accountability partner with whom to discuss big purchases A) true B) false
answer

A) true
question

Inflation has no effect on your buying power. A) true B) false
answer

B) false
question

A budget has little effect on person’s financial success unless he or she also develops power over purchase A) true B) false
answer

B) false
question

You should never wait overnight before making a big purchase if there is only one item left. A) true B) false
answer

B) false

Get instant access to
all materials

Become a Member