Midterm M.O.F.

My friend offered the bank his house as .... when he needed a loan.

• collateral

• debt

• term

• tenure

The bank will take possession of your car if you .... your car loan.

• pay off

• default on

• endorse

• compute

The amount of money that the lender lends to the borrower is called ....

• principal

• tenure

• default

• collateral

What would NOT be a part of getting a good deal when buying a car?

• Low monthly payments

• Low interest rate

• More for your trade-in

• Paying less than invoice price

What is invoice pricing?

• The cost you pay as a buyer

• The cost the dealer pays for the car

• The base price

• The cost of the vehicle plus options

What should you do before going to buy a car? Select all that apply.

• Research exactly what car you want

• Research insurance

• Research loans (bank vs Credit Union)

• Nothing, let the dealership do the work for you

If I am not comfortable with the car buying process, what should I do?

• Cross my fingers and hope for the best

• Buy the car anyways

• Invite the salesperson to dinner

• Get up and leave

Buying a used car can save the consumer an average of ______ % in overall ownership costs.

• 25

• 50

• 0

• 100

An unexpected cost of car ownership is....

• Depreciation

• Regular Maintenance

• Gas

• Insurance

Gene McDonald's bank granted him a single-payment loan of $5000 for 90 days at 9% ordinary interest. What is the amount of ordinary interest owed?

• $112.50

• $150.00

• $132.50

• $156.20