Module 10 Test

This part of your car insurance policy pays for damages to your car in case you are in an accident.

• Collision

• Uninsured motorist

• Comprehensive

• Overall vehicle

Leasing a car might be a good option for someone who

• drives a lot of miles every year

• wants to own the car at the end of the term

• always wants to drive a newer car

• wants to customize their car

Renting would be better than buying for an individual who

• does not want to need to pay for maintenance and upkeep expenses

• plans on staying at their home for at least 20 years.

• wants to own several large dogs and a few cats.

• wants to paint the walls bright colors

A home inspection

• should be done by a licensed building inspector.

• is done after the home is purchased.

• all of these

• should only be done for properties with sale prices of $500,000 or more.

With an Adjustable Rate Mortgage (ARM), the interest rate paid over the life of the loan will

• increase or decrease as the prime rate changes

• always be lower than a fixed rate mortgage

• not change for the life of the loan

• change every 5 years in predictable patterns

Most renters and all homeowners will both need to pay monthly for

• electricity

• washing machine payments

• a new furnace

• their mortgage payment

Funds that are left over after you have paid for the necessities of food, clothing, and shelter are called _____________.

• Expenditure funds

• Mandatory Funds

• Discretionary funds

• Savings

The ___________ can be used to check on a business and make sure they are reputable.

• Better Business Bureau

• Consumer Education Center

• Firelands Economic Association

• Confidence Business Analyst Society

___________ covers damage to your car in case of theft or vandalism.

• Comprehensive

• Collision

• Uninsured motorist

• Property damage liability

Expenses for a renter could include [expenses].

• none of these.

• security deposit

• first and last month's rent

• additional fees