Question 1

Gasoline is a variable cost of automobile ownership.

Accepted Answer

A) True 
 B)False

Question 2

If a renter and a homeowner lived in housing units of similar size and type,the owner would probably have greater monthly costs initially.

Accepted Answer

A) True 
 B)False

Question 3

The affordability ratios used to qualify applicants for FHA and VA loans are more stringent than those used for conventional loans.

Accepted Answer

A) True 
 B)False

Question 4

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.
-You are paying on a car loan,a furniture loan,and a student loan.This will have [an | no] effect on the lender's decision to grant you a mortgage loan.

Accepted Answer

The answer of INSTRUCTIONS: Choose the word or phrase in...

Question 5

The act requiring mortgage lenders to give borrowers HUD booklets and good faith estimates of the closing costs is called the

Accepted Answer

A)  Equal Credit Opportunity Act. 
B)  Truth-in-Lending Act. 
C)  Real Estate Settlement Procedures Act. 
D)  Mortgage Lenders Act of 1980. 
E)  None of the above. 
A)  Equal Credit Opportunity Act. 
B)  Truth-in-Lending Act. 
C)  Real Estate Settlement Procedures Act. 
D)  Mortgage Lenders Act of 1980. 
E)  None of the above.

Question 6

Other factors being equal,fixed-rate mortgages will have higher interest rates initially than adjustable-rate mortgages.

Accepted Answer

A) True 
 B)False

Question 7

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.
-Using an FHA mortgage to finance your home would require a [lower | higher] down payment than a conventional loan.

Accepted Answer

The answer of INSTRUCTIONS: Choose the word or phrase in...

Question 8

Which of the following typically saves the buyer the most on an auto purchase?

Accepted Answer

A)  No-haggle pricing 
B)  Internet purchases 
C)  Buying a car through a buying service 
D)  Using low-interest offers rather than rebate offers. 
E)  None of the above.Each case will be different 
A)  No-haggle pricing 
B)  Internet purchases 
C)  Buying a car through a buying service 
D)  Using low-interest offers rather than rebate offers. 
E)  None of the above.Each case will be different

Question 9

Which of the following is true regarding cooperative apartments?

Accepted Answer

A)  They are essentially the same as condominiums. 
B)  It may be more difficult to get a home mortgage than for other types of housing. 
C)  They tend to be more expensive than single-family dwellings. 
D)  They produce more tax advantages than other types of homes. 
E)  All of the above 
A)  They are essentially the same as condominiums. 
B)  It may be more difficult to get a home mortgage than for other types of housing. 
C)  They tend to be more expensive than single-family dwellings. 
D)  They produce more tax advantages than other types of homes. 
E)  All of the above

Question 10

To refinance a mortgage,the lender typically requires at least 20% equity in the home.

Accepted Answer

A) True 
 B)False

Question 11

First-time homebuyers can withdraw up to $10,000 from an IRA without penalty regardless of their age.

Accepted Answer

A) True 
 B)False

Question 12

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.
-A major variable cost of owning a car is [the loan payment | gasoline].

Accepted Answer

The answer of INSTRUCTIONS: Choose the word or phrase in...

Question 13

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 [longer | shorter] the period of time you expect to live in a house,the more likely refinancing is a sound financial decision.

Accepted Answer

The answer of INSTRUCTIONS: Choose the word or phrase in...

Question 14

A growing trend in new car pricing is

Accepted Answer

A)  posting the sticker price on the car 
B)  offering a one-price,no-haggling policy. 
C)  posting the sticker price on the car. 
D)  negotiating the price of the car. 
E)  all of the above 
A)  posting the sticker price on the car 
B)  offering a one-price,no-haggling policy. 
C)  posting the sticker price on the car. 
D)  negotiating the price of the car. 
E)  all of the above

Question 15

To be legally binding,real estate buy-sell agreements must be in writing,but leases may be oral.

Accepted Answer

A) True 
 B)False

Question 16

Condominiums and townhomes are generally less costly than single-family,detached homes.

Accepted Answer

A) True 
 B)False

Question 17

You should not talk with the car dealer about a trade in until after you have negotiated the final price on the car you are purchasing.

Accepted Answer

A) True 
 B)False

Question 18

Generally,renting would be preferred to buying when

Accepted Answer

A)  you have no money to make a down payment. 
B)  you know your job will be temporary. 
C)  you have just gone through a divorce. 
D)  all of these. 
E)  none of these. 
A)  you have no money to make a down payment. 
B)  you know your job will be temporary. 
C)  you have just gone through a divorce. 
D)  all of these. 
E)  none of these.

Question 19

Pete and Pam want to purchase a new home but don't know how much mortgage they can qualify for.The lender requires total installment loan payments not exceed 32% of gross monthly income.Based on Pete and Pam's financial data below,what is the maximum monthly mortgage payment for which they can qualify?

Accepted Answer

A)  $1,700 
B)  $1,600 
C)  $ 900 
D)  $ 600 
E)  $ 500 
A)  $1,700 
B)  $1,600 
C)  $ 900 
D)  $ 600 
E)  $ 500

Question 20

When negotiating either an auto purchase or a lease,do not reveal what you can afford to pay per month.

Accepted Answer

A) True 
 B)False

Gasoline is a variable cost of automobile ownership.

If a renter and a homeowner lived in housing units of similar size and type,the owner would probably have greater monthly costs initially.

The affordability ratios used to qualify applicants for FHA and VA loans are more stringent than those used for conventional loans.

The act requiring mortgage lenders to give borrowers HUD booklets and good faith estimates of the closing costs is called the

Other factors being equal,fixed-rate mortgages will have higher interest rates initially than adjustable-rate mortgages.

Which of the following typically saves the buyer the most on an auto purchase?

Which of the following is true regarding cooperative apartments?

To refinance a mortgage,the lender typically requires at least 20% equity in the home.

First-time homebuyers can withdraw up to $10,000 from an IRA without penalty regardless of their age.

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. -A major variable cost of owning a car is [the loan payment | gasoline].

A growing trend in new car pricing is

To be legally binding,real estate buy-sell agreements must be in writing,but leases may be oral.

Condominiums and townhomes are generally less costly than single-family,detached homes.

You should not talk with the car dealer about a trade in until after you have negotiated the final price on the car you are purchasing.

Generally,renting would be preferred to buying when

When negotiating either an auto purchase or a lease,do not reveal what you can afford to pay per month.

Understanding the Financial Planning Process

Your Financial Statements and Plans

Preparing Your Taxes

Managing Your Cash and Savings

Using Credit

Using Consumer Loans

Insuring Your Life

Insuring Your Health

Protecting Your Property

Investment Planning

Investing in Stocks and Bonds

Investing in Mutual Funds

Planning for Retirement

Preserving Your Estate

Filters

Exam 5: Making Automobile and Housing Decisions

Gasoline is a variable cost of automobile ownership.

If a renter and a homeowner lived in housing units of similar size and type,the owner would probably have greater monthly costs initially.

The affordability ratios used to qualify applicants for FHA and VA loans are more stringent than those used for conventional loans.

The act requiring mortgage lenders to give borrowers HUD booklets and good faith estimates of the closing costs is called the

Other factors being equal,fixed-rate mortgages will have higher interest rates initially than adjustable-rate mortgages.

Which of the following typically saves the buyer the most on an auto purchase?

Which of the following is true regarding cooperative apartments?

To refinance a mortgage,the lender typically requires at least 20% equity in the home.

First-time homebuyers can withdraw up to $10,000 from an IRA without penalty regardless of their age.

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. -A major variable cost of owning a car is [the loan payment | gasoline].

A growing trend in new car pricing is

To be legally binding,real estate buy-sell agreements must be in writing,but leases may be oral.

Condominiums and townhomes are generally less costly than single-family,detached homes.

You should not talk with the car dealer about a trade in until after you have negotiated the final price on the car you are purchasing.

Generally,renting would be preferred to buying when

When negotiating either an auto purchase or a lease,do not reveal what you can afford to pay per month.

Understanding the Financial Planning Process

Your Financial Statements and Plans

Preparing Your Taxes

Managing Your Cash and Savings

Using Credit

Using Consumer Loans

Insuring Your Life

Insuring Your Health

Protecting Your Property

Investment Planning

Investing in Stocks and Bonds

Investing in Mutual Funds

Planning for Retirement

Preserving Your Estate

Filters