Financial Literacy Assessments 1st 50 Q's

Which of the following is the most well-known vehicle valuation company according to the segment?

• CarMax

• Consumer Reports

• CarFax

• Kelly Blue Book

Invoice price is sometimes also referred to as which of the following?

• True Market Value

• Dealer Cost

• Sticker Price

• Out-the-Door Price

Which of the following is NOT an advantage of buying from a private seller as opposed to a dealership as discussed in the segment?

• Less hassle

• Increased ability to negotiate

• Lower starting prices

• Less pressure

How does the segment recommend checking for possible fluid leaks when examining a car?

• Walk around the car

• Look under the car

• Rev the engine when parked

• Test-drive the car

Which of the following is NOT recommended when test-driving a vehicle?

• Drive over bumps

• Test the brakes

• Listen to the radio

• Drive on the highway

According to the segment, your total automotive expenses should NOT exceed what percentage of your take-home pay?

• 10 percent

• 20 percent

• 30 percent

• 40 percent

Which type of auto insurance is required by law in most states?

• Liability

• Collision

• Comprehensive

• Personal injury

Sylvia is a first-time car buyer without an established credit history, so she is going to be charged a high interest rate. According to Raegan Sisemore, what could she do to get a lower interest rate?

• Agree to a lease term of more than five years

• Take a financial literacy class at a local college

• Get a co-buyer with good credit, such as a parent

• Open at least three other credit accounts at the same time

Raegan Sisemore said when you lease a car, you are basically paying for which of the following?

• Value plus interest

• Value plus endorsement

• Rent plus depreciation

• Rent plus down payment

Which of the following is NOT a possible consequence of buying a car which is beyond your means as discussed in the segment?

• Inability to pay bills

• Temporary incarceration

• Repossession of the vehicle

• Decline in credit scores