ECON 248 UNIT 5 EXAM SCRIPT TESTED
QUESTIONS AND SOLUTIONS 100 PERCENT
CORRECT
◉ If you have a small sum of money to deposit and don't want to have
access to it at any time, which of these would be your best choice,
even though it carries low interest rates? Answer: Savings Accounts
◉ Which of the following is true?
a. Add-ons from the dealership like rustproofing are generally not a
good idea.
b. The depreciation of new cars is minimal in the first year of
ownership
c. Car prices cannot be negotiated on the internet.
d. The price advertised by the dealership for the car includes the tax
and title fees Answer: The depreciation of new cars is minimal in the
first year of ownership
◉ Leasing a car might be a good option for someone who
a. drives a lot of miles every year
b. wants to own the car at the end of the term
c. wants to customize their car
d. always wants to drive a newer car Answer: always wants to drive a
newer car
, ◉ Buying a car might be the best option for someone who
a. always wants to have their car under warranty for repairs
b. wants to own the car as an asset at the end of the term
c. wants low monthly payments on the vehicle
d. always wants to drive a newer car Answer: wants to own the car as
an asset at the end of the term
◉ When you lease a car you have to be concerned about depreciation.
Answer: false
◉ Once a 1-year lease is signed, how frequently can landlords
increase the amount of rent due? Answer: At the end of the lease
◉ Renting would be better than buying for an individual who
__________________________ Answer: does not want to pay for
maintenance and upkeep expenses.
◉ Which of these categories of expenses would be present for both
renters and buyers? Answer: Electric and natural gas utilities expense
◉ A ________________ is a formal legal contract between a renter
and a landlord Answer: lease
QUESTIONS AND SOLUTIONS 100 PERCENT
CORRECT
◉ If you have a small sum of money to deposit and don't want to have
access to it at any time, which of these would be your best choice,
even though it carries low interest rates? Answer: Savings Accounts
◉ Which of the following is true?
a. Add-ons from the dealership like rustproofing are generally not a
good idea.
b. The depreciation of new cars is minimal in the first year of
ownership
c. Car prices cannot be negotiated on the internet.
d. The price advertised by the dealership for the car includes the tax
and title fees Answer: The depreciation of new cars is minimal in the
first year of ownership
◉ Leasing a car might be a good option for someone who
a. drives a lot of miles every year
b. wants to own the car at the end of the term
c. wants to customize their car
d. always wants to drive a newer car Answer: always wants to drive a
newer car
, ◉ Buying a car might be the best option for someone who
a. always wants to have their car under warranty for repairs
b. wants to own the car as an asset at the end of the term
c. wants low monthly payments on the vehicle
d. always wants to drive a newer car Answer: wants to own the car as
an asset at the end of the term
◉ When you lease a car you have to be concerned about depreciation.
Answer: false
◉ Once a 1-year lease is signed, how frequently can landlords
increase the amount of rent due? Answer: At the end of the lease
◉ Renting would be better than buying for an individual who
__________________________ Answer: does not want to pay for
maintenance and upkeep expenses.
◉ Which of these categories of expenses would be present for both
renters and buyers? Answer: Electric and natural gas utilities expense
◉ A ________________ is a formal legal contract between a renter
and a landlord Answer: lease
