8
QuizMultiple Choice

Case Study: Personal Financial Planning — Quiz

Question 8 • Personal Finance

Buying a new car can create a financial challenge because

Answer
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.

Explanation

A car payment is a recurring expense, so buying a car means it must be included in the monthly budget. The payment does not necessarily exceed available income, and insurance-rate comparisons or changes over time are not the central budgeting challenge described here. The correct choice is “car payments must become part of the budget.”

AI-written and checked against the verified answer.

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