Question 1

You can always get more for your old car by trading it in for a new car rather than by selling it on your own.

Accepted Answer

A) True 
 B)False

Question 2

Of these four items,which is most aptly described as a need?

Accepted Answer

A) Shelter 
B) A new house 
C) Home ownership 
D) A condominium 
A) Shelter 
B) A new house 
C) Home ownership 
D) A condominium

Question 3

Which is not an additional charge when leasing an automobile?

Accepted Answer

A) Acquisition fee 
B) Disposition fee 
C) Residual value 
D) Early termination fee 
A) Acquisition fee 
B) Disposition fee 
C) Residual value 
D) Early termination fee

Question 4

Buying items that are on sale is only helpful when you will really use the item.

Accepted Answer

A) True 
 B)False

Question 5

Prioritizing wants becomes easier when a decision has multiple facets.

Accepted Answer

A) True 
 B)False

Question 6

Compare the cost of the following leasing agreement with the finance charge on a loan for the same time period.The price of the car is $14,000,and its projected residual value at the end of four years is $3,000.
​
 
Other things being equal,one would want to finance this car rather than take this lease if the finance cost were less than

Accepted Answer

A) $200. 
B) $1,550. 
C) $2,200. 
D) $2,450. 
A) $200. 
B) $1,550. 
C) $2,200. 
D) $2,450.

Question 7

If you plan to purchase the vehicle at the end of the lease period,you would pay the actual cash value if your lease was closed-end.

Accepted Answer

A) True 
 B)False

Question 8

The ____ outlines the specific vehicle to be purchased and all charges for the purchase.

Accepted Answer

A) buyer's order. 
B) promissory note. 
C) title. 
D) dealer holdback. 
A) buyer's order. 
B) promissory note. 
C) title. 
D) dealer holdback.

Question 9

The Federal Trade Commission's "cooling off" rule allows you to

Accepted Answer

A) cancel a contract to purchase an item costing over $25 that is signed away from the dealer's normal place of business within three days. 
B) cancel a contract to purchase an item costing over $25 within three days. 
C) cancel a contract to purchase any item that is signed away from the dealer's normal place of business within three days. 
D) cancel any purchase within 10 days. 
A) cancel a contract to purchase an item costing over $25 that is signed away from the dealer's normal place of business within three days. 
B) cancel a contract to purchase an item costing over $25 within three days. 
C) cancel a contract to purchase any item that is signed away from the dealer's normal place of business within three days. 
D) cancel any purchase within 10 days.

Question 10

What does it mean in auto leasing and auto financing when you are said to be upside down?

Accepted Answer

A) You don't qualify for the lease or financing. 
B) You owe more on the car than it is worth. 
C) You wrecked the car and can't pay the debt. 
D) None of these. 
A) You don't qualify for the lease or financing. 
B) You owe more on the car than it is worth. 
C) You wrecked the car and can't pay the debt. 
D) None of these.

Question 11

To be most successful in negotiating,one must be willing to walk away from the deal if it does not fit your expectations and desires.

Accepted Answer

A) True 
 B)False

Question 12

Buying without fully considering priorities and alternatives is called

Accepted Answer

A) impulse buying. 
B) unplanned purchasing. 
C) money saving. 
D) planned buying. 
A) impulse buying. 
B) unplanned purchasing. 
C) money saving. 
D) planned buying.

Question 13

A limited warranty covers free parts and labor.

Accepted Answer

A) True 
 B)False

Question 14

____ publishes a list of recommended used cars in various price ranges each April.

Accepted Answer

A) Kiplinger's Personal Finance 
B) Consumer Reports 
C) Money Magazine 
D) Car and Driver 
A) Kiplinger's Personal Finance 
B) Consumer Reports 
C) Money Magazine 
D) Car and Driver

Question 15

With a rebate,the seller refunds a portion of the purchase price of the product either as a direct payment or a credit against future purchases.

Accepted Answer

A) True 
 B)False

Question 16

Needs and wants should both be considered necessities.

Accepted Answer

A) True 
 B)False

Question 17

A vehicle lease is essentially

Accepted Answer

A) a rental of a vehicle. 
B) buying a vehicle on credit. 
C) always a bad deal. 
D) a way to get a rebate. 
A) a rental of a vehicle. 
B) buying a vehicle on credit. 
C) always a bad deal. 
D) a way to get a rebate.

Question 18

Most people should not make buying decisions for expensive purchases

Accepted Answer

A) inside a retail store. 
B) at home. 
C) in a showroom. 
D) inside a retail store or in a showroom. 
A) inside a retail store. 
B) at home. 
C) in a showroom. 
D) inside a retail store or in a showroom.

Question 19

The process of comparing products or services to find what you think is the best buy is called

Accepted Answer

A) negotiating. 
B) preshopping research. 
C) comparison shopping 
D) decision making. 
A) negotiating. 
B) preshopping research. 
C) comparison shopping 
D) decision making.

Question 20

Low-balling generally occurs just before the close of a sale.

Accepted Answer

A) True 
 B)False

You can always get more for your old car by trading it in for a new car rather than by selling it on your own.

Of these four items,which is most aptly described as a need?

Which is not an additional charge when leasing an automobile?

Buying items that are on sale is only helpful when you will really use the item.

Prioritizing wants becomes easier when a decision has multiple facets.

If you plan to purchase the vehicle at the end of the lease period,you would pay the actual cash value if your lease was closed-end.

The ____ outlines the specific vehicle to be purchased and all charges for the purchase.

The Federal Trade Commission's "cooling off" rule allows you to

What does it mean in auto leasing and auto financing when you are said to be upside down?

To be most successful in negotiating,one must be willing to walk away from the deal if it does not fit your expectations and desires.

Buying without fully considering priorities and alternatives is called

A limited warranty covers free parts and labor.

____ publishes a list of recommended used cars in various price ranges each April.

With a rebate,the seller refunds a portion of the purchase price of the product either as a direct payment or a credit against future purchases.

Needs and wants should both be considered necessities.

A vehicle lease is essentially

Most people should not make buying decisions for expensive purchases

The process of comparing products or services to find what you think is the best buy is called

Low-balling generally occurs just before the close of a sale.

Understanding Personal Finance

Career Planning

Financial Statements,tools,and Budgets

Managing Income Taxes

Managing Checking and Savings Accounts

Building and Maintaining Good Credit

Credit Cards and Consumer Loans

Obtaining Affordable Housing

Managing Property and Liability Risk

Managing Health Expenses

Life Insurance Planning

Investment Fundamentals

Investing in Stocks and Bonds

Mutual Funds and Exchange Traded Funds

Real Estate and High-Risk Investments

Retirement and Estate Planning

Filters

Exam 8: Vehicles and Other Major Purchases

You can always get more for your old car by trading it in for a new car rather than by selling it on your own.

Of these four items,which is most aptly described as a need?

Which is not an additional charge when leasing an automobile?

Buying items that are on sale is only helpful when you will really use the item.

Prioritizing wants becomes easier when a decision has multiple facets.

If you plan to purchase the vehicle at the end of the lease period,you would pay the actual cash value if your lease was closed-end.

The ____ outlines the specific vehicle to be purchased and all charges for the purchase.

The Federal Trade Commission's "cooling off" rule allows you to

What does it mean in auto leasing and auto financing when you are said to be upside down?

To be most successful in negotiating,one must be willing to walk away from the deal if it does not fit your expectations and desires.

Buying without fully considering priorities and alternatives is called

A limited warranty covers free parts and labor.

____ publishes a list of recommended used cars in various price ranges each April.

With a rebate,the seller refunds a portion of the purchase price of the product either as a direct payment or a credit against future purchases.

Needs and wants should both be considered necessities.

A vehicle lease is essentially

Most people should not make buying decisions for expensive purchases

The process of comparing products or services to find what you think is the best buy is called

Low-balling generally occurs just before the close of a sale.

Understanding Personal Finance

Career Planning

Financial Statements,tools,and Budgets

Managing Income Taxes

Managing Checking and Savings Accounts

Building and Maintaining Good Credit

Credit Cards and Consumer Loans

Obtaining Affordable Housing

Managing Property and Liability Risk

Managing Health Expenses

Life Insurance Planning

Investment Fundamentals

Investing in Stocks and Bonds

Mutual Funds and Exchange Traded Funds

Real Estate and High-Risk Investments

Retirement and Estate Planning

Filters