13
QuizMultiple Choice

Investing and Financial Markets — Unit test

Question 13 • Personal Finance - EL3403

Buying a new car can create a financial challenge because

Answer
A
car insurance rates will decrease over time.
B
car payments must become part of the budget.
C
car insurance rates will be higher than renter’s insurance.
D
car payments are likely to exceed available income.

Explanation

Buying a new car usually means taking on regular payments, so those payments need to be included in the household budget. That added expense can make it harder to cover other costs. The best answer is “car payments must become part of the budget”; the question does not imply that payments will exceed available income.

AI-written and checked against the verified answer.

Previous
Next