If You Default on Your Automobile Loan

question 88

Multiple Choice

If you default on your automobile loan,

• A)an advance notice to you is required before your car is repossessed.
• B)no advance notice is required before repossession.
• C)the federal consumer credit laws give you protection.
• D)you don't have to pay the full balance due on the loan.
• E)the creditor pays the towing and storage costs.

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Definitions:

Total Expenditures

The sum total of all spending, often referenced in the context of consumer, government, or business expenditures.

Rational Consumer

An economic theory assumption about consumers behaving logically, making choices to maximize their utility or satisfaction given their budget constraints.

Entire Income

The total earnings or revenue generated by an individual or entity from all sources before any deductions.

Price Elasticity

A measure of how much the quantity demanded of a good responds to a change in the price of that good, with all other factors being held constant.