3
QuizMultiple Choice

Warranties

Question 3 • 26-27 Ignite Financial Literacy Personal Finance - EL3403

If an item tends to be very expensive to repair, how might that affect your decision to purchase a warranty for it?

Answer
A
If an item is very expensive to repair, it is probably easier to buy a new one than to repair it, so a warranty is probably not worth it.
B
The price of a warranty is based on the price of the repairs, so a warranty might not be a good idea.
C
Buying an extended warranty might be a good idea so that you do not have to repair the item yourself.
D
Buying a limited warranty might be a good idea because limited warranties sometimes do not deal with repairs, meaning that you will not have to handle these expensive repairs.
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