Personal Finance
When Jane researched the brands and prices of refrigerators, she was Comparison shopping. Compulsive shopping. Impulse shopping. Trade-off shopping. Warranty shopping.
Comparison shopping.
A no-haggling dealer presents the price of a new car to be accepted or rejected as stated and is called a ___ dealer. Invoice price. Sticker price. Set price. Capitalized cost. Residual value.
capitalized cost
Jennifer is thinking about leasing a sports car. She will make monthly payments based on a money factor and the price of the vehicle, which is called the Invoice price. Sticker price. Set price. Capitalized cost. Residual value.
capitalized cost
Service contracts on vehicles usually are wise financial decisions. True False
false
A lawyer is necessary when you appear in small claims court. True False
false
Abigail checked out brands and prices of blue jeans at several stores. She was impulse shopping. True False
false
An example of a "preshopping activity" is negotiating the price of a product. True False
false
Lemon laws have been enacted in 48 of the 50 states for new vehicle purchases. True False
false
Prices at the local convenience store will probably be lower than at the national retail grocery store. True False
false
Studies of consumer problems consistently rank auto repairs as one of the best consumer services with few consumer complaints. True False
false
The best place to find a qualified lawyer who will meet your specific needs is a phone book. True False
false
To extend the life of your vehicle, you should get a tune-up every 10,000 miles. True False
false
The price of a leased vehicle is known as the Invoice price. Sticker price. Set price. Capitalized cost. Residual value.
residual value
Which of the following costs will increase directly with the number of miles driven? Depreciation Gasoline Insurance Interest on an auto loan License and registration
Gasoline
While Paul was shopping for a new chainsaw, he found a great deal on a new drill and bought it. This is an example of Comparison shopping. Compulsive shopping. Impulse shopping. Trade-off shopping. Warranty shopping.
Impulse shopping.
A vehicle lease has several costs. Which of the following is the interest rate used to calculate the monthly cost? Capitalized cost. Money factor. Payment schedule. Residual value. All of these.
payment schedule
A partial refund of the price of a product is called a Coupon Open dating Rebate Unit pricing Warranty
rebate
The dealer's cost is also known as the Invoice price. Sticker price. Set price. Capitalized cost. Residual value.
set price
The amount printed on a label with the suggested retail price that is posted on a vehicle is called the Invoice price. Sticker price. Set price. Capitalized cost. Residual value.
sticker price
While evaluating alternatives, all of the following are appropriate questions you could ask before making a major purchase except Is it possible to delay the purchase or to do without the item? Should I pay for the item with cash or buy it on credit? Which brands should I consider? How do the price, quality, and service compare at different stores? All of these are questions that should be asked.
All of these are questions that should be asked.
Which of the following is a disadvantage of a car lease? A large down payment is required. At the end of the lease, you have no ownership interest in the vehicle. The capitalized cost is usually lower than the list price. Monthly lease payments are usually lower than monthly financing payments. You can usually obtain a more expensive vehicle than with an outright purchase.
At the end of the lease, you have no ownership interest in the vehicle.
Frank bought some miniblinds. Although he did not receive a written warranty, the blinds should be expected to open and close properly. What kind of warranty does Frank have? "As-is" warranty Express warranty Full warranty Implied warranty Limited warranty
implied warranty
A service contract... Is better than an extended warranty. Is an agreement to cover repair during the implied warranty period. Is included automatically with the purchase of a vehicle. Usually does not cover the engine cooling system. Covers the repair costs of a product.
Covers the repair costs of a product.
Which of the following is an advantage of a car lease? A large down payment is required. At the end of the lease, you have no ownership interest in the vehicle The capitalized cost is usually higher than the list price. Monthly lease payments are usually lower than monthly financing payments. The total cost of a lease may be higher than a purchase.
Monthly lease payments are usually lower than monthly financing payments.
These products are highly advertised and available at many stores. Private-label brands Store brands National brands Regional brands Generic items
National brands
The lowest payment does not necessarily mean the best credit plan. If your car loan is a long period of time, you may end up owing more than the car is worth, which is called Low monthly payments. Low-interest loan. Negative equity. Loan preapproval. All of these are potential problems.
Negative equity
The expected value of a vehicle at the end of a lease is called the Invoice price. Sticker price. Set price. Capitalized cost. Residual value.
capitalized value
Most products come with some guarantee of quality. This type of warranty states that a defective product can be fixed or replaced during a reasonable amount of time. "As-is" warranty Express warranty Full warranty Implied warranty Limited warranty
full warranty
Steve bought a laptop that was defective. This laptop will be fixed or replaced by the manufacturer as long as he returns it in a reasonable amount of time. What type of warranty does he have on his laptop? "As-is" warranty Express warranty Full warranty Implied warranty Limited warranty
full warranty
Karen bought a mixer. She received a warranty that covers only certain aspects of the product. If the product fails, she may be required to pay part of the costs for shipping or repairs. Which of the following warranties does she have? "As-is" warranty Express warranty Full warranty Implied warranty Limited warranty
limited warranty
A vehicle lease has several costs. Which of the following is the amount paid monthly and the number of payments? Capitalized cost Money factor Payment schedule Residual value Trade-in value
low monthly payments
A vehicle lease has several costs. Which of the following is the price of the vehicle? Capitalized cost. Money factor. Payment schedule. Residual value. All of these.
money factor
A lease for a car is typically for three to five years. True False
true
A service contract is frequently called an extended warranty even though service contracts are not warranties. True False
true
Advantages of a lease over a purchase include that the buyer can usually obtain a more expensive vehicle and the monthly lease payments are usually lower than monthly financing payments. True False
true
The appearance of a used car can be deceptive. When purchasing a used vehicle, it is a good idea to Take out a loan for the entire cost. Accept the dealer at his word about the condition of the vehicle. Have a trained and trusted mechanic of your choice check out the vehicle. All of these are correct. None of these is correct.
Have a trained and trusted mechanic of your choice check out the vehicle.
Which of the following is correct about the lemon law? It applies when a vehicle has been out of service for 60 days. It was enacted in 45 of the 50 states. It requires a refund for the vehicle after the owner has made repeated attempts to obtain financing. It applies to vehicles that have been serviced four times to correct the same problem in the first 12,000 miles. It applies to both new and used vehicle purchases.
It applies to vehicles that have been serviced four times to correct the same problem in the first 12,000 miles.
A variable operating cost for a vehicle is Depreciation. Insurance. Interest on an auto loan. License and registration. Maintenance and repairs.
Maintenance and repairs.
All of the following are fixed operating costs for a vehicle except Depreciation. Insurance. Interest on an auto loan. License and registration. Maintenance and repairs.
Maintenance and repairs.
The unit price of a 32-ounce jar of honey that costs $8.32 is $0.13 per ounce. True False
false
Small claims court is used to take legal action by a few individuals on behalf of all who have suffered the same alleged injustice. True False
false
The best time to ask a lawyer about his fees is after he wins a case for you. True False
false
The only way that you can have long-term financial security is to not save all of your current income. True False
false
The settlement of a difference between two parties through discussion and negotiation by a mediator is legally binding. True False
false
Thomas bought a vehicle from a used car dealer. He returned it to the dealer because the transmission fell out 150 miles after he purchased it. The dealer refused to accept the return because the vehicle was sold "as is." This is an example of a limited warranty. True False
false
After two or three years of making loan payments on a new car, the balance owed is greater than the value of the car, which is a situation referred to as upside-down. True False
true
In determining the purchase price of a new car, a trade-in vehicle should NOT be mentioned until the cost of the new car has been settled. True False
true
One of the common sources to find a qualified lawyer who will meet your specific needs is referrals from friends. True False
true
Thomas bought a toaster that would not toast bread, and he returned it. The manufacturer accepted the return because it was defective and came with a full warranty. True False
true
This is a written guarantee from the manufacturer that specifies the conditions under which the product can be returned, replaced, or repaired. Coupon Open dating Rebate Unit pricing Warranty
warranty
