Question 1

Capitalized cost on an auto lease is the same as the price of the car.

Accepted Answer

A) True 
 B)False

Question 2

In a co-op,the buyer receives title to a unit and joint ownership of the common areas.

Accepted Answer

A) True 
 B)False

Question 3

Townhome,condominium and co-op owners can deduct real estate taxes and mortgage interest on their federal income taxes.

Accepted Answer

A) True 
 B)False

Question 4

The cost of a title search and title insurance are typically part of the closing costs on a housing transaction.

Accepted Answer

A) True 
 B)False

Question 5

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.
-If your lender charges 1 1/2 mortgage points on a house selling for $100,000 on which there is to be a $90,000 loan,the points will cost you [$1,350 | $1,500].

Accepted Answer

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

Question 6

Most new car warranties cover a minimum of the first 72,000 miles or 6 years of ownership.

Accepted Answer

A) True 
 B)False

Question 7

What is the maximum amount a first-time home buyer who is not 59 years old can withdraw from an IRA without penalty?

Accepted Answer

A)  $25,000 
B)  $15,000 
C)  $10,000 
D)  $ 5,000 
E)  $ 2,000 
A)  $25,000 
B)  $15,000 
C)  $10,000 
D)  $ 5,000 
E)  $ 2,000

Question 8

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 most popular type of lease is the [closed-end | open-end] lease.

Accepted Answer

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

Question 9

Most lenders do not want mortgage payments to exceed ____ percent of your gross monthly income.

Accepted Answer

A)  10-15 
B)  15-18 
C)  25-30 
D)  30-33 
E)  33-38 
A)  10-15 
B)  15-18 
C)  25-30 
D)  30-33 
E)  33-38

Question 10

When shopping for a lease,you want a

Accepted Answer

A)  high capitalized cost 
B)  low capitalize cost 
C)  high money factor 
D)  low residual value 
E)  a and d 
A)  high capitalized cost 
B)  low capitalize cost 
C)  high money factor 
D)  low residual value 
E)  a and d

Question 11

If a buyer withdraws from a transaction without a valid reason after signing a sales contract,he typically loses his earnest money.

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 real estate agent will typically be paid by the [buyer | seller] of the house.

Accepted Answer

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

Question 13

Cars typically depreciate 20 to 25 percent during the first ____ months of a car's life.

Accepted Answer

A)  0 - 12 
B)  12 - 18 
C)  18 - 24 
D)  24 - 36 
E)  36 - 48 
A)  0 - 12 
B)  12 - 18 
C)  18 - 24 
D)  24 - 36 
E)  36 - 48

Question 14

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.
-It is very difficult to recover the cost of home improvements like [kitchen improvements | adding a swimming pool].

Accepted Answer

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

Question 15

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 sticker price on a new car is the [manufacturer's suggested retail price | dealer's cost] for the vehicle.

Accepted Answer

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

Question 16

Henry has $2,500 for a down payment and thinks he can afford monthly payments of $400.If he can finance a vehicle with an 8%,3-year loan,what is the maximum amount Henry can spend on the car?

Accepted Answer

A)  $12,765 
B)  $14,400 
C)  $14,079 
D)  $15,265 
E)  $16,879 
A)  $12,765 
B)  $14,400 
C)  $14,079 
D)  $15,265 
E)  $16,879

Question 17

Most new car warranties are void if the owner fails to perform routine maintenance on the car.

Accepted Answer

A) True 
 B)False

Question 18

To research used car prices,you can check one of the popular price guides including:

Accepted Answer

A)  National Automobile Dealers Association (NAD
A)  
B)  Official Used Car Guide 
C)  Edmunds Used Car Prices 
D)  All of the above. 
A)  National Automobile Dealers Association (NAD
A)  
B)  Official Used Car Guide 
C)  Edmunds Used Car Prices 
D)  All of the above.

Question 19

A closed-end automobile lease is the most popular type of lease.

Accepted Answer

A) True 
 B)False

Question 20

Graduated payment mortgages and growing equity mortgages are both examples of adjustable-rate mortgages.

Accepted Answer

A) True 
 B)False

Capitalized cost on an auto lease is the same as the price of the car.

In a co-op,the buyer receives title to a unit and joint ownership of the common areas.

Townhome,condominium and co-op owners can deduct real estate taxes and mortgage interest on their federal income taxes.

The cost of a title search and title insurance are typically part of the closing costs on a housing transaction.

Most new car warranties cover a minimum of the first 72,000 miles or 6 years of ownership.

What is the maximum amount a first-time home buyer who is not 59 years old can withdraw from an IRA without penalty?

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 most popular type of lease is the [closed-end | open-end] lease.

Most lenders do not want mortgage payments to exceed ____ percent of your gross monthly income.

When shopping for a lease,you want a

If a buyer withdraws from a transaction without a valid reason after signing a sales contract,he typically loses his earnest money.

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 real estate agent will typically be paid by the [buyer | seller] of the house.

Cars typically depreciate 20 to 25 percent during the first ____ months of a car's life.

Henry has $2,500 for a down payment and thinks he can afford monthly payments of $400.If he can finance a vehicle with an 8%,3-year loan,what is the maximum amount Henry can spend on the car?

Most new car warranties are void if the owner fails to perform routine maintenance on the car.

To research used car prices,you can check one of the popular price guides including:

A closed-end automobile lease is the most popular type of lease.

Graduated payment mortgages and growing equity mortgages are both examples of adjustable-rate mortgages.

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

Capitalized cost on an auto lease is the same as the price of the car.

In a co-op,the buyer receives title to a unit and joint ownership of the common areas.

Townhome,condominium and co-op owners can deduct real estate taxes and mortgage interest on their federal income taxes.

The cost of a title search and title insurance are typically part of the closing costs on a housing transaction.

Most new car warranties cover a minimum of the first 72,000 miles or 6 years of ownership.

What is the maximum amount a first-time home buyer who is not 59 years old can withdraw from an IRA without penalty?

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 most popular type of lease is the [closed-end | open-end] lease.

Most lenders do not want mortgage payments to exceed ____ percent of your gross monthly income.

When shopping for a lease,you want a

If a buyer withdraws from a transaction without a valid reason after signing a sales contract,he typically loses his earnest money.

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 real estate agent will typically be paid by the [buyer | seller] of the house.

Cars typically depreciate 20 to 25 percent during the first ____ months of a car's life.

Henry has $2,500 for a down payment and thinks he can afford monthly payments of $400.If he can finance a vehicle with an 8%,3-year loan,what is the maximum amount Henry can spend on the car?

Most new car warranties are void if the owner fails to perform routine maintenance on the car.

To research used car prices,you can check one of the popular price guides including:

A closed-end automobile lease is the most popular type of lease.

Graduated payment mortgages and growing equity mortgages are both examples of adjustable-rate mortgages.

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