Exam 5: Making Automobile and Housing Decisions

INSTRUCTIONS: Choose the word or phrase in [ ] which will correctly complete the statement.Select A for the first item,B for the second item,and C if neither item will correctly complete the statement. -In the same geographic area,the cost of a [detached home | condo] will usually be lower.

A loan-to-value ratio of 90 percent would require a buyer to make a 90% down payment.

INSTRUCTIONS: Choose the word or phrase in [ ] which will correctly complete the statement.Select A for the first item,B for the second item,and C if neither item will correctly complete the statement. -There is direct ownership of your living space in a [condo | co-op apartment].

The difference between the market value of your home and the balance of the mortgage is your equity in the property.

Earnest money deposits and contingency clauses are usually specified in the sale contract.

INSTRUCTIONS: Choose the word or phrase in [ ] which will correctly complete the statement.Select A for the first item,B for the second item,and C if neither item will correctly complete the statement. -Your car dealer has offered you an extended warranty.Most experts believe you [should | should not] purchase this warranty.

The highest average cost housing to purchase would be a

The realtor's fee is usually paid by the home seller.

You can deduct mortgage interest and property taxes on your home to reduce your federal income taxes only if you itemize deductions.

Even people without children should consider the school district when purchasing a home.

INSTRUCTIONS: Choose the word or phrase in [ ] which will correctly complete the statement.Select A for the first item,B for the second item,and C if neither item will correctly complete the statement. -The condominium/townhome buyer shares joint ownership of [common areas | his living space].

The greatest fixed cost involved with owning an automobile is usually the auto insurance payments.

If the maximum loan-to-value ratio that a lender will accept on a $100,000 loan is 90 percent,then the borrower must make

The price of the car you are leasing is called the

INSTRUCTIONS: Choose the word or phrase in [ ] which will correctly complete the statement.Select A for the first item,B for the second item,and C if neither item will correctly complete the statement. -The biggest fixed cost of owning a car is [the loan payment | insurance].

Points can be deducted from federal income taxes in the year paid when they are used to

The most common commission paid to the realtor to sell your property is approximately 3 to 5 percent.

The sales contract on an automobile purchase contractually binds you to purchase the car at the price you offered in the contract.

An escrow account is used to collect ____ from one's monthly mortgage payment.

INSTRUCTIONS: Choose the word or phrase in [ ] which will correctly complete the statement.Select A for the first item,B for the second item,and C if neither item will correctly complete the statement. -The 11^th District Cost of Funds index is much [more | less] volatile than LIBOR and CD-based indexes.