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Cars And Insurance Part 2
Test Description: More review for cars and insurance unit in ARR.
Instructions: Answer all questions to get your test result.
1) When shopping for a car remember that ___.
A
well known and highly advertised dealerships have the best prices.
B
going to several dealers is wise because it helps you locate the best deal.
C
going to new dealers is wise because they have the least experience and will be willing to negotiate the lowest prices
D
going to just one dealership is wise because it cuts down on time spent shopping.
2) Which of the following is an advantage of a new car?
A
Expensive
B
Less repairs/warranty
C
Depreciation
D
Costs less to insure
3) Insurance is _____.
A
a risk-sharing plan for consumers
B
unnecessary for people who have no dependents
C
unaffordable for young people
D
only for careless people who are prone to accidents.
4) What type of auto insurance protects a car from damage caused by fire, theft, water, hail, and vandalism?
A
Collision
B
Comprehensive
C
General liability
D
Uninsured motorist
5) When buying a car, one should base their choice on needs. Which of the following is the least important need to consider?
A
Amount of space for passengers
B
Sound system
C
Price
D
Miles per gallon
6) A used Honda Civic should be:
A
Covered under warranty
B
Inspected by a mechanic before purchasing
C
More expensive than a new Honda Civic
D
More reliable than a new Honda Civic
7) Jessica did not want to buy a new car due to depreciation. This is when:
A
The car increases in expenses
B
The car decreases in value due to time and use
C
The car decreases in reliability due to time and use
D
The car increases in reliability
8) Joe was not looking when he pulled into oncoming traffic and caused an accident. The driver of the car was injured. What type of insurance should Joe have to cover the cost of these injuries?
A
Uninsured motorist
B
Medical payments
C
General liability
D
Collision
9) Joe was not looking when he pulled into oncoming traffic and caused an accident. Joe injured himself. Which type of insurance should Joe have to cover the cost of these injuries?
A
General liability
B
Medical payments
C
Comprehensive
D
Uninsured motorist
10) Jimmy makes $33,625 a year after taxes. Thus he is making, $2,802 a month. What is the most Jimmy can spend on a car payment in one month?
A
$924.66
B
$3,362
C
$420.30
D
$11,096
*select an answer for all questions
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