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