STATE OF COLORADO MOTOR VEHICLE DEALER BOARD
MASTERY EXAMINATION 200 QUESTIONS WITH RATIONALES
1. How many total members serve on the Colorado Motor Vehicle
Dealer Board?
A. Five
B. Seven
C. Nine
D. Eleven
Correct Answer: C
Rationale: The Board consists of nine members: three licensed motor
vehicle dealers, three licensed used motor vehicle dealers, and three
public members.
2. What is the required surety bond amount for a new motor vehicle
dealer in Colorado?
A. $15,000
B. $25,000
C. $50,000
D. $100,000
Correct Answer: C
Rationale: The amount of the bond shall be fifty thousand dollars for a
motor vehicle dealer applicant.
3. How many hours of pre-licensing education are required for a used
motor vehicle dealer applicant?
A. Four hours
,B. Eight hours
C. Sixteen hours
D. Twenty hours
Correct Answer: B
Rationale: An applicant for a used motor vehicle dealer's license shall
not be licensed unless one of the specified persons has completed an
eight-hour pre-licensing education program.
4. Which of the following is a function of the Motor Vehicle Dealer
Board?
A. Setting motor vehicle registration fees
B. Issuing driver's licenses
C. Administering written examinations to applicants
D. Conducting emissions testing
Correct Answer: C
Rationale: Activities of the Division include administering written
examinations to applicants for licensure.
5. How many members of the Board must be licensed motor vehicle
dealers?
A. One
B. Two
C. Three
D. Four
Correct Answer: C
Rationale: The Board consists of nine members, three of whom shall be
licensed motor vehicle dealers.
6. What is the maximum administrative fine the Board may impose for
each separate offense by a licensee?
,A. $1,000
B. $5,000
C. $10,000
D. $25,000
Correct Answer: C
Rationale: The Board may impose an administrative fine upon its own
initiative, not to exceed ten thousand dollars for each offense by any
licensee.
7. What is the surety bond amount required for a motor vehicle
salesperson?
A. $5,000
B. $10,000
C. $15,000
D. $50,000
Correct Answer: C
Rationale: Colorado law requires a salesperson applicant to provide a
$15,000 surety bond.
8. What is the minimum Vantage credit score required for a dealer
license applicant?
A. 650
B. 680
C. 701
D. 750
Correct Answer: C
Rationale: The Dealer Board requires a Vantage score of at least 701 or
higher for each applicant.
, 9. What is the minimum net worth requirement for a
dealer/wholesaler license applicant?
A. $50,000
B. $75,000
C. $100,000
D. $150,000
Correct Answer: C
Rationale: The Board requires a net worth of at least $100,000 for a
dealer/wholesaler license applicant.
10. How many public members serve on the Motor Vehicle Dealer
Board?
A. Two
B. Three
C. Four
D. Five
Correct Answer: B
Rationale: The Board consists of nine members, three of whom shall be
members from the public at large.
11. What score must an applicant achieve to pass the Online Mastery
Examination?
A. 70%
B. 75%
C. 80%
D. 85%
Correct Answer: D
Rationale: An applicant must pass the Online Mastery Exam with a
passing score of 85%.
MASTERY EXAMINATION 200 QUESTIONS WITH RATIONALES
1. How many total members serve on the Colorado Motor Vehicle
Dealer Board?
A. Five
B. Seven
C. Nine
D. Eleven
Correct Answer: C
Rationale: The Board consists of nine members: three licensed motor
vehicle dealers, three licensed used motor vehicle dealers, and three
public members.
2. What is the required surety bond amount for a new motor vehicle
dealer in Colorado?
A. $15,000
B. $25,000
C. $50,000
D. $100,000
Correct Answer: C
Rationale: The amount of the bond shall be fifty thousand dollars for a
motor vehicle dealer applicant.
3. How many hours of pre-licensing education are required for a used
motor vehicle dealer applicant?
A. Four hours
,B. Eight hours
C. Sixteen hours
D. Twenty hours
Correct Answer: B
Rationale: An applicant for a used motor vehicle dealer's license shall
not be licensed unless one of the specified persons has completed an
eight-hour pre-licensing education program.
4. Which of the following is a function of the Motor Vehicle Dealer
Board?
A. Setting motor vehicle registration fees
B. Issuing driver's licenses
C. Administering written examinations to applicants
D. Conducting emissions testing
Correct Answer: C
Rationale: Activities of the Division include administering written
examinations to applicants for licensure.
5. How many members of the Board must be licensed motor vehicle
dealers?
A. One
B. Two
C. Three
D. Four
Correct Answer: C
Rationale: The Board consists of nine members, three of whom shall be
licensed motor vehicle dealers.
6. What is the maximum administrative fine the Board may impose for
each separate offense by a licensee?
,A. $1,000
B. $5,000
C. $10,000
D. $25,000
Correct Answer: C
Rationale: The Board may impose an administrative fine upon its own
initiative, not to exceed ten thousand dollars for each offense by any
licensee.
7. What is the surety bond amount required for a motor vehicle
salesperson?
A. $5,000
B. $10,000
C. $15,000
D. $50,000
Correct Answer: C
Rationale: Colorado law requires a salesperson applicant to provide a
$15,000 surety bond.
8. What is the minimum Vantage credit score required for a dealer
license applicant?
A. 650
B. 680
C. 701
D. 750
Correct Answer: C
Rationale: The Dealer Board requires a Vantage score of at least 701 or
higher for each applicant.
, 9. What is the minimum net worth requirement for a
dealer/wholesaler license applicant?
A. $50,000
B. $75,000
C. $100,000
D. $150,000
Correct Answer: C
Rationale: The Board requires a net worth of at least $100,000 for a
dealer/wholesaler license applicant.
10. How many public members serve on the Motor Vehicle Dealer
Board?
A. Two
B. Three
C. Four
D. Five
Correct Answer: B
Rationale: The Board consists of nine members, three of whom shall be
members from the public at large.
11. What score must an applicant achieve to pass the Online Mastery
Examination?
A. 70%
B. 75%
C. 80%
D. 85%
Correct Answer: D
Rationale: An applicant must pass the Online Mastery Exam with a
passing score of 85%.
