Most People Do Not Buy the Safest Car They Can

question 50

Multiple Choice

Most people do not buy the safest car they can find. Why not?

• A) Other factors matter besides safety, such as comfort, cost, and fuel economy.
• B) People do not take the time to understand the safety features of cars.
• C) Consumers are unaware of the risks of different cars.
• D) The statement is false. People do buy the safest car they can find.

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Definitions:

Interest Per Month

Interest per month is the amount of interest charged or earned on a loan or investment for a one-month period, typically expressed as a percentage of the principal.

Year-end Balance

The total amount of money in an account or on the financial statements at the conclusion of the fiscal year.

Compounded Monthly

Interest on an investment or loan calculated each month on both the initial principal and the accumulated interest from previous months.

Effective Annual Interest Rate

The effective annual interest rate considers the effects of compounding, providing a true reflection of the annual cost of borrowing over a year.