Question 3 • FL-2102373-Personal Finance and Money Management Honors
Read the scenario.Lupita is in the market for a new motorcycle. Lupita knows that having full coverage under the contract is crucial for her peace of mind and financial security. Lupita's budget is a significant factor in her decision-making process. She knows that exceeding her budget could strain her finances and potentially lead to difficulties in making monthly payments. As a result, Lupita carefully considers the total cost of the motorcycle, including the additional expense of full coverage insurance. How might the need for full coverage under the contract affect Lupita’s decision?
Answer
A
She might reconsider the purchase if the total cost exceeds her budget.
B
She may ensure the motorcycle she selects is equipped with the latest safety features.
C
She may include the latest technology and navigation system in the motorcycle purchase.
D
She might choose a different model motorcycle that comes with a higher insurance rate.
Explanation
Full coverage insurance adds to the total cost of owning the motorcycle. Since Lupita is concerned that going over budget could make monthly payments difficult, she may reconsider buying if the motorcycle plus insurance costs more than she can afford. This matches choice A, “She might reconsider the purchase if the total cost exceeds her budget.”
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