Chapter Review
Chapter 28:
Cars and the Consumer
Practice Test
1.
The sticker price on a new car __________.
a.
is the price most people pay for a new car
b.
is generally discounted in part on the basis of the buyer's negotiating ability
c.
reflects any manufacturer's bonuses, rebates, or special sales
d.
is not affected by the time of year
2.
Considering safety features when buying a car is important because __________.
a.
while the likelihood of being in an accident is remote, people should be prepared
b.
in an average year, one out of every three motorists is involved in an accident
c.
a driver can never be too safe
d.
in an average year, one out of every two motorists is involved in an accident
3.
Bumper-to-bumper warranties on new cars generally exclude __________.
a.
batteries and tires
b.
engines
c.
drivetrains
d.
brakes
4.
If a used car has a sticker saying it is being sold "as is," __________.
a.
there is no warranty
b.
the warranty is limited to 30 days
c.
the warranty only covers major mechanical parts
d.
the warranty only covers labor costs
5.
Financing a car with a longer repayment period means that the car will __________.
a.
be cheaper because the payments are lower
b.
cost more because there will be more paid in interest
c.
cost the same regardless of the length of repayment
d.
cost less because the interest is lower
6.
Interest rates on a car loan may vary based on which of the following?
a.
the age of the car
b.
the lender
c.
general economic conditions
d.
all of the above
7.
If you __________, you may make your car warranty ineffective.
a.
fail to perform scheduled maintenance
b.
miss a car payment
c.
complain to the Better Business Bureau
d.
fail to notify your car dealership within 48 hours of discovering a problem
8.
The difference between leasing and buying a car is that __________.
a.
monthly purchase payments are generally lower than monthly lease payments
b.
car insurance is not required when leasing a car
c.
at the end of the lease agreement, the lessee does not own the car
d.
gas is provided at no cost to individuals leasing cars
9.
Insurance payments may vary based on all of the following EXCEPT __________.
a.
your driving record
b.
your age and gender
c.
how much you plan to drive
d.
your income
10.
The first thing to do when a person is involved in an auto accident is __________.
a.
call the police
b.
check for injuries
c.
look for witnesses
d.
exchange information with the other driver
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