Personal Finance Courses:
Vehicle Acquisition
Test your knowledge
Choose wisely. There is only one correct answer to each question.
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1.
Liability coverage on an automobile insurance policy covers damages that you cause to _______.
Choose wisely. There is only one correct answer.
Yourself
Other people
Both you and other people
Other people. Liability covers others, not you. Other forms of coverage will cover you.
2.
What is probably the biggest advantage of buying a used vehicle instead of a new one?
Choose wisely. There is only one correct answer.
The state of the safety features
The price
The amount of maintenance included
The fuel efficiency
The price. For most people, price is the biggest advantage.
3.
If your take-home pay after taxes is $1,000 a month, then your car payments should ideally be how much at the most?
Choose wisely. There is only one correct answer.
$100
$200
$400
$500
$200. A popular recommendation is that your total monthly car payments should not exceed 20% of your take-home pay.
4.
Most car leases state an annual mileage limit.
Choose wisely. There is only one correct answer.
True
False
True. The limit is usually between 10,000 and 15,000 miles.
5.
Your car's license plate establishes you as the legal owner of the vehicle.
Choose wisely. There is only one correct answer.
True
False
False. The title, not the license plate, does this.
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DONE