Question 1

The most common loan term for home mortgages is 20 years.

Accepted Answer

A) True 
 B)False

Question 2

Advantages of buying a used car rather than a new car include

Accepted Answer

A)  good mechanical condition. 
B)  will depreciate less quickly. 
C)  more choices available. 
D)  cost. 
E)  all of the above. 
A)  good mechanical condition. 
B)  will depreciate less quickly. 
C)  more choices available. 
D)  cost. 
E)  all of the above.

Question 3

Terminating a car lease before expiration is often difficult and costly.

Accepted Answer

A) True 
 B)False

Question 4

Homeowner's insurance will cost about ____ percent of the market value of the home.

Accepted Answer

A)  1/4 
B)  1/4 to 1/2 
C)  1/2 
D)  1/2 to 3/4 
E)  3/4 
A)  1/4 
B)  1/4 to 1/2 
C)  1/2 
D)  1/2 to 3/4 
E)  3/4

Question 5

Terms of renting a housing unit may be contained in a contract called a

Accepted Answer

A)  deposit requirement. 
B)  renewal option. 
C)  lease. 
D)  housing code. 
E)  housing standard. 
A)  deposit requirement. 
B)  renewal option. 
C)  lease. 
D)  housing code. 
E)  housing standard.

Question 6

A significant legal difference between a cooperative and a condominium is that the condominium owner normally holds a title to the property.

Accepted Answer

A) True 
 B)False

Question 7

The capital cost reduction on a vehicle lease is

Accepted Answer

A)  like the down payment on a loan. 
B)  the rate of interest on a lease. 
C)  the residual value at the end of the lease. 
D)  the depreciation on a lease. 
E)  the same as the purchase option on a lease. 
A)  like the down payment on a loan. 
B)  the rate of interest on a lease. 
C)  the residual value at the end of the lease. 
D)  the depreciation on a lease. 
E)  the same as the purchase option on a lease.

Question 8

The loss of value in a car over time is called

Accepted Answer

A)  maintenance. 
B)  loan payments. 
C)  sales payments. 
D)  commissions. 
E)  depreciation. 
A)  maintenance. 
B)  loan payments. 
C)  sales payments. 
D)  commissions. 
E)  depreciation.

Question 9

The largest single investment you will undertake in your lifetime will probably be the purchase of an automobile.

Accepted Answer

A) True 
 B)False

Question 10

Federal regulation requires sellers to give buyers a signed statement attesting to the fact that the mileage shown on the odometer of their used car is correct.

Accepted Answer

A) True 
 B)False

Question 11

____ is a reason for preferring to rent rather than to buy.

Accepted Answer

A)  Mobility 
B)  No maintenance worries 
C)  Lower monthly cash flows 
D)  Down payment money better used elsewhere 
E)  All of these are reasons 
A)  Mobility 
B)  No maintenance worries 
C)  Lower monthly cash flows 
D)  Down payment money better used elsewhere 
E)  All of these are reasons

Question 12

Negative amortization is possible with an adjustable-rate mortgage.

Accepted Answer

A) True 
 B)False

Question 13

Security deposits are controlled by the tenant.

Accepted Answer

A) True 
 B)False

Question 14

Points paid when a home is refinanced can all be deducted as interest in the year they are paid.

Accepted Answer

A) True 
 B)False

Question 15

One should use their emergency funds to make a larger down payment on a vehicle.

Accepted Answer

A) True 
 B)False

Question 16

A 5 percent down payment will result in larger monthly mortgage payments than a 10 percent down payment on the same house for the same maturity mortgage.

Accepted Answer

A) True 
 B)False

Question 17

Patrick would like to know the monthly payments and the total finance charges on the following 2 loans: (Show all work. )
a.
$30,000,9%,36 months
b.
$30,000,9%,48 months

Accepted Answer

a.
36 month loan: PV=30,000,I=

Question 18

Which of the following are reasons people lease vehicles?

Accepted Answer

A)  Leasing is generally less expensive than buying. 
B)  Monthly payments for leases are generally less expensive than loan payments. 
C)  One can afford a more expensive car with the same monthly payment by leasing rather than buying. 
D)  b and c only 
E)  a,b,and c 
A)  Leasing is generally less expensive than buying. 
B)  Monthly payments for leases are generally less expensive than loan payments. 
C)  One can afford a more expensive car with the same monthly payment by leasing rather than buying. 
D)  b and c only 
E)  a,b,and c

Question 19

Which of the following is(are)regulated by the federal government?

Accepted Answer

A)  cost of used cars 
B)  cost of new cars 
C)  dealer mark up on new cars 
D)  odometer disclosure on used cars 
E)  all of the above 
A)  cost of used cars 
B)  cost of new cars 
C)  dealer mark up on new cars 
D)  odometer disclosure on used cars 
E)  all of the above

Question 20

For most homeowners,the most important financial reason for owning a home is

Accepted Answer

A)  security for loans. 
B)  an inflation hedge. 
C)  a tax shelter. 
D)  a cash flow item. 
E)  psychic income. 
A)  security for loans. 
B)  an inflation hedge. 
C)  a tax shelter. 
D)  a cash flow item. 
E)  psychic income.

The most common loan term for home mortgages is 20 years.

Advantages of buying a used car rather than a new car include

Terminating a car lease before expiration is often difficult and costly.

Homeowner's insurance will cost about ____ percent of the market value of the home.

Terms of renting a housing unit may be contained in a contract called a

A significant legal difference between a cooperative and a condominium is that the condominium owner normally holds a title to the property.

The capital cost reduction on a vehicle lease is

The loss of value in a car over time is called

The largest single investment you will undertake in your lifetime will probably be the purchase of an automobile.

Federal regulation requires sellers to give buyers a signed statement attesting to the fact that the mileage shown on the odometer of their used car is correct.

____ is a reason for preferring to rent rather than to buy.

Negative amortization is possible with an adjustable-rate mortgage.

Security deposits are controlled by the tenant.

Points paid when a home is refinanced can all be deducted as interest in the year they are paid.

One should use their emergency funds to make a larger down payment on a vehicle.

A 5 percent down payment will result in larger monthly mortgage payments than a 10 percent down payment on the same house for the same maturity mortgage.

Patrick would like to know the monthly payments and the total finance charges on the following 2 loans: (Show all work. ) a. $30,000,9%,36 months b. $30,000,9%,48 months

Which of the following are reasons people lease vehicles?

Which of the following is(are)regulated by the federal government?

For most homeowners,the most important financial reason for owning a home is

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

The most common loan term for home mortgages is 20 years.

Advantages of buying a used car rather than a new car include

Terminating a car lease before expiration is often difficult and costly.

Homeowner's insurance will cost about ____ percent of the market value of the home.

Terms of renting a housing unit may be contained in a contract called a

A significant legal difference between a cooperative and a condominium is that the condominium owner normally holds a title to the property.

The capital cost reduction on a vehicle lease is

The loss of value in a car over time is called

The largest single investment you will undertake in your lifetime will probably be the purchase of an automobile.

Federal regulation requires sellers to give buyers a signed statement attesting to the fact that the mileage shown on the odometer of their used car is correct.

____ is a reason for preferring to rent rather than to buy.

Negative amortization is possible with an adjustable-rate mortgage.

Security deposits are controlled by the tenant.

Points paid when a home is refinanced can all be deducted as interest in the year they are paid.

One should use their emergency funds to make a larger down payment on a vehicle.

A 5 percent down payment will result in larger monthly mortgage payments than a 10 percent down payment on the same house for the same maturity mortgage.

Patrick would like to know the monthly payments and the total finance charges on the following 2 loans: (Show all work. ) a. $30,000,9%,36 months b. $30,000,9%,48 months

Which of the following are reasons people lease vehicles?

Which of the following is(are)regulated by the federal government?

For most homeowners,the most important financial reason for owning a home is

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