Violet's car broke down on the way to work, and her mechanic has told her that the car cannot be fixed. Violet drives 30 miles one way to work each day. There is no reliable bus or train transportation that goes anywhere near her work. Violet decides she needs a car for reliable transportation to work. What step in the car buying process is Violet carrying out?

• Problem identification

• Evaluating alternatives

• Determining the purchase price

• Post-purchase activities

Imagine you're renting an apartment in a bustling city. What would your renter's insurance most likely cover?

• umbrella liability

• flood damage

• house and other structures

• personal property

Imagine you've just bought a new car. ______ is considered a variable operating cost of this automobile.

• Interest on auto loan

• Maintenance

• Registration fee

• Insurance

Ty rides his bicycle to work so that he does not have to worry about getting in a car accident. How is Ty managing his risk?

• Reduction

• Assumption

• Shifting

• Avoidance

John is looking to buy a house and is considering a conventional mortgage. This type of mortgage usually has:

• a payment cap

• equal payments

• a variable interest rate

• a government guarantee

In the context of driving, negligence is best described as:

• common road hazards

• vehicle damage

• failure to take ordinary or reasonable care while driving

• high risk auto insurance coverage

Your home insurance policy has a $500 deductible. If a small fire causes $850 in damages to your home, what amount of the claim would the insurance company pay?

• $350

• $850

• $500

• not able to determine from this information

Imagine you're buying a home priced at $300,000. Private Mortgage Insurance (PMI) is usually required if the down payment is less than ______ percent of the purchase price of the home.

• 15

• 5

• 12

• 20

Imagine a scenario where a teenager, without a driving license, takes their parent's car for a joyride and ends up damaging a neighbor's fence. The parent may be held responsible for the actions of their child because those actions caused financial harm to the neighbor. This principle is known as:

• negligence

• vicarious liability

• self insurance

• strict liability

Imagine you've just bought a brand new car. Which of the following will be the largest fixed expense over the first year of ownership?

• Registration, license, and fees

• Depreciation

• Parking

• Insurance