Car & Loan Quiz
1. Most used cars sold by private parties have a one-year warranty.
2. A service contract is designed to avoid costly repairs as a motor vehicle gets older.
3. The truth-in-lending law requires that a borrower be informed of the total finance charge.
4. Bodily-injury liability covers the damage to another person's car for which you were at
5. Collision insurance covers damage caused to a motor vehicle by vandalism or floods.
6. The most reliable source for buying a used car is usually:
a rental car company.
a police auction.
a car dealer.
private party sales.
7. (Fill in the blank) warranty refers to the fact that a product will do what it is designed to do.
An unexpired manufacturer's
8. The truth-in-lending law requires that borrowers be informed of the:
cost of auto insurance.
features of an extended warranty.
reasons a person has been denied credit.
9. The auto insurance coverage for damage to your vehicle as a result of an accident is called:
10. Doctor costs for injuries to others resulting from an accident are covered by (fill in the blank) liability.
CAR AND LOAN QUIZ ANSWERS
- it is designed to do
- amount financed
- bodily injury liability