Question

a. lenders face greater risk on long - term loans.
b. consumers are less influenced by short - term returns.
c. lenders face greater competition for short - term loans.
d. consumers are more hesitant to make long - term investments.

1. which example shows an advantage of owning a car over leasing one? mcm.1.4

a. expiring warranty means that you will get to handle repair payments.
b. no restrictions on the number of miles to drive and the ability to customize, or make changes to the car.
c. you will drive a fairly new car for a limited period of time.
d. smaller monthly payments and good warranty to cover repairs.

1. leasing a car may be a better option than buying a car if... mcm.1.4

a. you dont plan on having it for long and dont want to worry about regular maintenance.
b. you have enough money for a large down payment.
c. you want the extended warranty and maintenance because you plan on having the car for a while.
d. you travel great distances regularly.

Explanation:

• Question 24: Owning a car allows for no mileage restrictions and customization, which are not always possible with leasing.
• Question 25: Leasing is good for short - term use without maintenance concerns.

Answer:

• 24. B. No restrictions on the number of miles to drive and the ability to customize, or make changes to the car.
• 25. A. you don't plan on having it for long and don't want to worry about regular maintenance.