Case Study: Personal Financial Planning — Quiz Answers

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Which is the most important consideration when deciding to purchase or lease a vehicle?

A
the cost of gas and insurance
B
all monthly car payments
C
all current monthly expenditures
D
the amount of cash saved
4

What is an advantage of renting a place to live?

A
low down payment
B
lower up-front costs
C
increasing equity over time
D
payments change from month to month
5

When making a decision about housing, the first step should be

A
gathering information on available housing.
B
visiting different housing locations.
C
analyzing the availability of housing loans.
D
comparing the cost of housing alternatives.
6

Joann has decided to purchase a new car. What should she do next according to the decision-making process?

A
Visit a car dealership.
B
Choose a car color and style.
C
Arrange for a car loan.
D
Research available cars for sale.
7

What is the most acceptable and easy way to revise a budget to allow for the purchase of a new couch?

A
Cancel renters' insurance.
B
Cook dinners at home instead of going out to eat.
C
Skip a car payment for a few months.
D
Advertise for a roommate to reduce rent.
8

Buying a new car can create a financial challenge because

A
car payments are likely to exceed available income.
B
car insurance rates will be higher than renter’s insurance.
C
car insurance rates will decrease over time.
D
car payments must become part of the budget.
9

Daniel wants to buy a laptop computer, and he has $300 in savings. He can purchase a new computer for $279 or a refurbished [repaired or renovated] computer for $100. What should Daniel do next?

A
Review the pros and cons of the different available computers.
B
Obtain a credit card to pay for a refurbished computer.
C
Revise his budget to allow for a new computer.
D
Evaluate his decision to buy a computer.

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