Personal Finance 6.02: Question Preview (ID: 9890)


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An ADVANTAGE of buying a new car instead of a used one is that a new car:
a) can be insured at lower costs. b) depreciates more slowly than used cars. c) has more defects. d) offers more choices of features.
An ADVANTAGE of what type of vehicle is that it conserves energy more than other types?
a) Automobiles b) Motorcycles c) Sports utility vehicles d) Vans
When Patricia's automobile was severely damaged by branches falling from a tree, her insurance paid for the damages. Which type of insurance is this?
a) Collision b) Comprehensive physical damage c) Liability d) Medical
Seth turned in his leased car before the 36-month lease ends. One condition of this decision is having:
a) a possible option to buy the vehicle. b) to pay the next monthly payment. c) to pay a penalty for early termination. d) to pay for vehicle depreciation.
Kara is comparing the estimated value of the make, model, and year for three different used cars. Which type of pricing is this?
a) Base price b) Book value c) Invoice price d) Sticker price
Ben purchased a luxury sports car at an auto superstore. Which is MOST LIKELY true of Ben's new car?
a) Will have 15,000 miles on odometer b) Will cost less to insure than most cars c) Will have a warranty d) Will only be available for leasing, not buying
Allison purchased a used car "as is" at an auction. What is MOST LIKELY true of Allison's new car?
a) Will be recalled by the manufacturer b) Will not be insurable c) Will not have a warranty d) Will only be available for leasing, not buying
An advantage of buying a used car instead of a new one is that used cars:
a) can be insured at lower costs. b) have better warranties than new cars. c) have fewer defects than new car d) increase in value more quickly than new cars
Martin is comparing the book value of several used cars. Which step in meeting transportation needs is this?
a) List transportation options b) Set priorities c) Do the research d) Obtain vehicle insurance
Oliver is checking locations of bus stops and possible carpools from the dorm to his internship site. Which step in meeting transportation needs is this?
a) List transportation options b) Set priorities c) Do the research d) Obtain vehicle insurance
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