FA 1st Semester Final Exam 2024

Front

What type of insurance covers damage to a car from natural disasters or vandalism?

Back

Comprehensive insurance covers damage to a car from natural disasters or vandalism.

Front

What type of insurance pays for the repair or replacement of a car damaged in an accident?

Back

Collision insurance pays for the repair or replacement of a car damaged in an accident.

Front

What type of insurance covers damages caused to another person?

Back

Liability insurance covers damages caused to another person.

Front

What is an example of a variable expense?

Back

A utility bill is an example of a variable expense.

Front

When purchasing a used car from a private seller, to whom do you pay the sales tax?

Back

You pay the sales tax to the DMV.

Front

What is the primary purpose of liability insurance?

Back

The primary purpose of liability insurance is to protect the insured from legal claims and damages caused to others.

Front

What does collision insurance specifically cover?

Back

Collision insurance specifically covers damage to your own vehicle resulting from a collision with another vehicle or object.

Front

What is the difference between comprehensive and collision insurance?

Back

Comprehensive insurance covers non-collision-related incidents (like theft or natural disasters), while collision insurance covers damage from accidents.

Front

What is a fixed expense? Provide an example.

Back

A fixed expense is a cost that does not change from month to month, such as a car payment.

Front

What is the role of the DMV in vehicle transactions?

Back

The DMV (Department of Motor Vehicles) handles vehicle registration, title transfers, and collects sales tax on vehicle purchases.