Question 1

A consumer can save money by

Accepted Answer

A) paying cash for purchases. 
B) avoiding buying on impulse. 
C) stocking up on advertised specials. 
D) (all of these) 
A) paying cash for purchases. 
B) avoiding buying on impulse. 
C) stocking up on advertised specials. 
D) (all of these)

Question 2

Leases work best for people who plan to buy a new vehicle every five to seven years.

Accepted Answer

A) True 
 B)False

Question 3

A consumer should tell the car salesperson how much he or she can afford for a car so the salesperson can help him or her find an affordable car.

Accepted Answer

A) True 
 B)False

Question 4

An increasing number of people are using the Internet to shop for appliances,vehicles,furniture,and other "big ticket" items.

Accepted Answer

A) True 
 B)False

Question 5

Using the decision-making grid below,calculate the total score for Appliance "A."

Accepted Answer

A) 7.48 
B) 7.60 
C) 7.35 
D) 7.00 
A) 7.48 
B) 7.60 
C) 7.35 
D) 7.00

Question 6

During the comparison-shopping phase,you narrow the choices so you can begin negotiating for the best deal.

Accepted Answer

A) True 
 B)False

Question 7

Owing more on a vehicle loan than the vehicle is actually worth is called being

Accepted Answer

A) upside down. 
B) in default. 
C) strangled. 
D) depreciation. 
A) upside down. 
B) in default. 
C) strangled. 
D) depreciation.

Question 8

Most auto dealers will provide a used-vehicle history report at no cost to a prospective buyer.

Accepted Answer

A) True 
 B)False

Question 9

A service contract offers free or low-cost repairs to the product

Accepted Answer

A) during the warranty period. 
B) at no additional cost. 
C) only if the product is covered by a full warranty. 
D) for a specified period of time. 
A) during the warranty period. 
B) at no additional cost. 
C) only if the product is covered by a full warranty. 
D) for a specified period of time.

Question 10

An ill-advised credit purchase can have negative effects on your budget for years.

Accepted Answer

A) True 
 B)False

Question 11

When you have a consumer complaint,it is important to deal with ____ before moving to other channels.

Accepted Answer

A) a self-regulatory organization 
B) the actual seller 
C) a consumer action agency 
D) the small claims court 
A) a self-regulatory organization 
B) the actual seller 
C) a consumer action agency 
D) the small claims court

Question 12

The best place to make your final purchase decision is at the place of purchase.

Accepted Answer

A) True 
 B)False

Question 13

New vehicles can depreciate very quickly after purchase.

Accepted Answer

A) True 
 B)False

Question 14

When shopping for any product,it may help to review publications on a more specific topic,such as PC World.Bear in mind that trade magazines accept advertising for the products they report on and may not be as unbiased as Consumer Reports.

Accepted Answer

A) True 
 B)False

Question 15

Compare the cost of the following leasing agreement with the finance charge on a loan for the same time period: The value of the car is $15,000 at the beginning of the lease period,and its projected residual value at the end of three years is $4,000.The lease requires a $500 down payment.
 
Other things being equal,one would want to finance this car rather than take this lease if the finance cost were ____ or less.

Accepted Answer

A) $790 
B) $1,290 
C) $1,790 
D) $2,390 
A) $790 
B) $1,290 
C) $1,790 
D) $2,390

Question 16

"Gap" insurance

Accepted Answer

A) pays off the loan balance of a "totaled" vehicle. 
B) is very profitable for the dealer. 
C) is a good deal for the buyer. 
D) pays off the loan balance as well as being very profitable for the dealer. 
A) pays off the loan balance of a "totaled" vehicle. 
B) is very profitable for the dealer. 
C) is a good deal for the buyer. 
D) pays off the loan balance as well as being very profitable for the dealer.

Question 17

In addition to the price of the auto,____ may be a price variable in an auto negotiation.

Accepted Answer

A) trade-in value 
B) financing terms 
C) service contract costs 
D) all of these 
A) trade-in value 
B) financing terms 
C) service contract costs 
D) all of these

Question 18

When comparison shopping,your goal is to make a decision to purchase an item.

Accepted Answer

A) True 
 B)False

Question 19

Mary Kay has decided she would like to negotiate on a new car with a sticker price of $22,000.The typical dealer cost on this vehicle is approximately ____.

Accepted Answer

A) $21,560 
B) $19,800 
C) $19,360 
D) $21,340 
A) $21,560 
B) $19,800 
C) $19,360 
D) $21,340

Question 20

Never discuss ____ with an auto dealer.

Accepted Answer

A) trade-in values 
B) cost of service contracts 
C) affordable monthly payments 
D) the need for a loan 
A) trade-in values 
B) cost of service contracts 
C) affordable monthly payments 
D) the need for a loan

A consumer can save money by

Leases work best for people who plan to buy a new vehicle every five to seven years.

A consumer should tell the car salesperson how much he or she can afford for a car so the salesperson can help him or her find an affordable car.

An increasing number of people are using the Internet to shop for appliances,vehicles,furniture,and other "big ticket" items.

Using the decision-making grid below,calculate the total score for Appliance "A."

During the comparison-shopping phase,you narrow the choices so you can begin negotiating for the best deal.

Owing more on a vehicle loan than the vehicle is actually worth is called being

Most auto dealers will provide a used-vehicle history report at no cost to a prospective buyer.

A service contract offers free or low-cost repairs to the product

An ill-advised credit purchase can have negative effects on your budget for years.

When you have a consumer complaint,it is important to deal with ____ before moving to other channels.

The best place to make your final purchase decision is at the place of purchase.

New vehicles can depreciate very quickly after purchase.

When shopping for any product,it may help to review publications on a more specific topic,such as PC World.Bear in mind that trade magazines accept advertising for the products they report on and may not be as unbiased as Consumer Reports.

"Gap" insurance

In addition to the price of the auto,____ may be a price variable in an auto negotiation.

When comparison shopping,your goal is to make a decision to purchase an item.

Mary Kay has decided she would like to negotiate on a new car with a sticker price of $22,000.The typical dealer cost on this vehicle is approximately ____.

Never discuss ____ with an auto dealer.

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

A consumer can save money by

Leases work best for people who plan to buy a new vehicle every five to seven years.

A consumer should tell the car salesperson how much he or she can afford for a car so the salesperson can help him or her find an affordable car.

An increasing number of people are using the Internet to shop for appliances,vehicles,furniture,and other "big ticket" items.

Using the decision-making grid below,calculate the total score for Appliance "A."

During the comparison-shopping phase,you narrow the choices so you can begin negotiating for the best deal.

Owing more on a vehicle loan than the vehicle is actually worth is called being

Most auto dealers will provide a used-vehicle history report at no cost to a prospective buyer.

A service contract offers free or low-cost repairs to the product

An ill-advised credit purchase can have negative effects on your budget for years.

When you have a consumer complaint,it is important to deal with ____ before moving to other channels.

The best place to make your final purchase decision is at the place of purchase.

New vehicles can depreciate very quickly after purchase.

When shopping for any product,it may help to review publications on a more specific topic,such as PC World.Bear in mind that trade magazines accept advertising for the products they report on and may not be as unbiased as Consumer Reports.

"Gap" insurance

In addition to the price of the auto,____ may be a price variable in an auto negotiation.

When comparison shopping,your goal is to make a decision to purchase an item.

Mary Kay has decided she would like to negotiate on a new car with a sticker price of $22,000.The typical dealer cost on this vehicle is approximately ____.

Never discuss ____ with an auto dealer.

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