FCS 340 EXAM 3 QUESTIONS & ANSWERS
The text states that leasing is the best way to finance a vehicle. - Answers -False
Financing a car through where is usually the most expensive type of financing. -
Answers -a dealership
A typical vehicle loses half of its value after how many years? - Answers -3
Carfax - Answers -Vehicle History
KBB - Answers -Fair value of vehicle
Consumers Reports - Answers -Comparing vehicles
One variable that should be considered in understanding the total cost of owning a car
is - Answers -Depreciation
According to the text, what percentage of new vehicles are leased rather than
purchased? - Answers -25%
If you have anyone dependent on your income, you have an ethical responsibility to
have sufficient life insurance. - Answers -True
Assume Risk (for example, losing a wallet) - Answers -Low Frequency, Low severity
Transfer Risk (for example, home fire) - Answers -Low frequency High severity
Reduce Risk (for example, common cold) - Answers -High frequency Low severity
Avoid Risk (for example, lung cancer caused by smoking) - Answers -High Frequency
High severity
Which type of statistical event are you most likely to purchase insurance for? - Answers
-Low Frequency, High Severity
According to the text, which of the following should we consider in regard to life
insurance? - Answers -Do I need life insurance?
How much life insurance should I purchase?
What kind of life insurance should I buy?
How should the life insurance proceeds be received?
Which of the following is not a common method used to determine the needed amount
of life insurance? - Answers -Affordability
The text states that leasing is the best way to finance a vehicle. - Answers -False
Financing a car through where is usually the most expensive type of financing. -
Answers -a dealership
A typical vehicle loses half of its value after how many years? - Answers -3
Carfax - Answers -Vehicle History
KBB - Answers -Fair value of vehicle
Consumers Reports - Answers -Comparing vehicles
One variable that should be considered in understanding the total cost of owning a car
is - Answers -Depreciation
According to the text, what percentage of new vehicles are leased rather than
purchased? - Answers -25%
If you have anyone dependent on your income, you have an ethical responsibility to
have sufficient life insurance. - Answers -True
Assume Risk (for example, losing a wallet) - Answers -Low Frequency, Low severity
Transfer Risk (for example, home fire) - Answers -Low frequency High severity
Reduce Risk (for example, common cold) - Answers -High frequency Low severity
Avoid Risk (for example, lung cancer caused by smoking) - Answers -High Frequency
High severity
Which type of statistical event are you most likely to purchase insurance for? - Answers
-Low Frequency, High Severity
According to the text, which of the following should we consider in regard to life
insurance? - Answers -Do I need life insurance?
How much life insurance should I purchase?
What kind of life insurance should I buy?
How should the life insurance proceeds be received?
Which of the following is not a common method used to determine the needed amount
of life insurance? - Answers -Affordability
