Virtual Business: Personal Finance Reading Quiz Lessons 5

This will allow you to borrow money to buy a car, but you will have to pay it back with interest over time:

• Gift

• Lease

• Lend-lease

• Loan

This allows you to use a car for a specified period of time for a specified monthly payment:

• Loan

• Contract

• Lease

• Gift

With this type of insurance, if you are involved in an accident both parties will be covered by their own insurance policies

• Collision

• No-fault

• Comprehensive

• Liability

This number helps you compare loans:

• APR

• Credit score

• GPA

• Principal

This type of insurance pays to fix damages that you cause, but does not cover your own car:

• No-fault

• Collision

• Liability

• Comprehensive

Which one of the following is not part of your automobile operating costs?

• Insurance

• Transaction fees

• Parking

• Gas

When you are looking for a used car, this resource will help you best determine the value of a particular make and model:

• Road and Track

• Car and Driver

• Consumer Reports

• Kelley Blue Book

A substantial one of these will keep you from going upside down on your loan, that is, owing more on your car than it is worth

• Finance Charges

• Insurance

• Down Payment

• Interest

Purchasing rather than leasing will generally cause your initial monthly payments to be:

• Higher

• Lower

• The same

• All of these

This includes the interest you will have to pay to a lender beyond the amount you need to purchase the car:

• Lease Origination Fee

• Transaction Fee

• Finance Charges

• Down Payment