Question 1

The first choice in housing in the United States is

Accepted Answer

A)  single-family home. 
B)  condominium. 
C)  cooperative apartment. 
D)  manufactured home. 
E)  rental apartment. 
A)  single-family home. 
B)  condominium. 
C)  cooperative apartment. 
D)  manufactured home. 
E)  rental apartment.

Question 2

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 have a choice of a 25-year or 30-year mortgage.Your monthly payments will be [more | less] with the 30-year loan.

Accepted Answer

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

Question 3

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

Accepted Answer

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

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.
-When buying a home,the [emotional | financial] factors often carry the greatest weight.

Accepted Answer

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

Question 5

Jana has $1,500 for a down payment and thinks she can afford monthly payments of $300.If she can finance a vehicle with a 7%,4-year loan,what is the maximum loan amount Jana can afford?

Accepted Answer

A)  $12,528 
B)  $14,208 
C)  $16,028 
D)  $17,900 
E)  $18,028 
A)  $12,528 
B)  $14,208 
C)  $16,028 
D)  $17,900 
E)  $18,028

Question 6

Billy and Suzie want to calculate the difference in monthly payments on a $110,000 home as a result of a $5,000 down payment or a $10,000 down payment.Use your financial calculator to figure the monthly payments,assuming they get a 6.5%,30-year mortgage.

Accepted Answer

$ 5,000 down payment: PV = $10

Question 7

Soon after signing a sales contract,homebuyers often have buyer's remorse as they question whether they have done the right thing.

Accepted Answer

A) True 
 B)False

Question 8

The real estate commission charged for selling new homes than is generally lower than for selling previously occupied homes.

Accepted Answer

A) True 
 B)False

Question 9

In a condominium and townhome,the buyer receives title to an individual unit and joint ownership of the common areas.

Accepted Answer

A) True 
 B)False

Question 10

You will need to purchase homeowners insurance equal to the purchase price of the house you are buying.

Accepted Answer

A) True 
 B)False

Question 11

The latest model used cars are typically sold by independent used car lots.

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.
-Terminating a lease early is typically [difficult | easy].

Accepted Answer

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

Question 13

A financial advantage of renting compared to purchasing housing is

Accepted Answer

A)  income tax treatment. 
B)  need for down payment. 
C)  required security deposit. 
D)  the legal obligation. 
E)  stable monthly payments. 
A)  income tax treatment. 
B)  need for down payment. 
C)  required security deposit. 
D)  the legal obligation. 
E)  stable monthly payments.

Question 14

If a lender requires that mortgage payments cannot exceed 30% of gross income and total loan payments cannot exceed 38% of gross income,calculate the monthly payment for which a person with the following financial data could qualify.

Accepted Answer

$5,500 * 0.3 = $1,650
$5,500 *

Question 15

The most common loan term for home mortgages is 30 years.

Accepted Answer

A) True 
 B)False

Question 16

Early termination clauses on an auto lease typically apply to cars that are stolen or totaled in an accident as well as when you just want to return the vehicle before the end of the lease.

Accepted Answer

A) True 
 B)False

Question 17

The Veterans Administration guarantees mortgage loans given to qualified veterans.

Accepted Answer

A) True 
 B)False

Question 18

The term condominium refers to a style of architecture.

Accepted Answer

A) True 
 B)False

Question 19

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.
-With most ARMs,the interest rate over the lifetime of the loan can [increase to any level | increase only up to the pre-stated maximum].

Accepted Answer

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

Question 20

A real estate sales contract will include

Accepted Answer

A)  the amount you are willing to pay for the property. 
B)  the terms of the mortgage loan. 
C)  deed restrictions. 
D)  market value of the property. 
E)  none of the above. 
A)  the amount you are willing to pay for the property. 
B)  the terms of the mortgage loan. 
C)  deed restrictions. 
D)  market value of the property. 
E)  none of the above.

The first choice in housing in the United States is

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

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. -When buying a home,the [emotional | financial] factors often carry the greatest weight.

Jana has $1,500 for a down payment and thinks she can afford monthly payments of $300.If she can finance a vehicle with a 7%,4-year loan,what is the maximum loan amount Jana can afford?

Billy and Suzie want to calculate the difference in monthly payments on a $110,000 home as a result of a $5,000 down payment or a $10,000 down payment.Use your financial calculator to figure the monthly payments,assuming they get a 6.5%,30-year mortgage.

Soon after signing a sales contract,homebuyers often have buyer's remorse as they question whether they have done the right thing.

The real estate commission charged for selling new homes than is generally lower than for selling previously occupied homes.

In a condominium and townhome,the buyer receives title to an individual unit and joint ownership of the common areas.

You will need to purchase homeowners insurance equal to the purchase price of the house you are buying.

The latest model used cars are typically sold by independent used car lots.

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. -Terminating a lease early is typically [difficult | easy].

A financial advantage of renting compared to purchasing housing is

If a lender requires that mortgage payments cannot exceed 30% of gross income and total loan payments cannot exceed 38% of gross income,calculate the monthly payment for which a person with the following financial data could qualify.

The most common loan term for home mortgages is 30 years.

Early termination clauses on an auto lease typically apply to cars that are stolen or totaled in an accident as well as when you just want to return the vehicle before the end of the lease.

The Veterans Administration guarantees mortgage loans given to qualified veterans.

The term condominium refers to a style of architecture.

A real estate sales contract will include

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 first choice in housing in the United States is

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

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. -When buying a home,the [emotional | financial] factors often carry the greatest weight.

Jana has $1,500 for a down payment and thinks she can afford monthly payments of $300.If she can finance a vehicle with a 7%,4-year loan,what is the maximum loan amount Jana can afford?

Billy and Suzie want to calculate the difference in monthly payments on a $110,000 home as a result of a $5,000 down payment or a $10,000 down payment.Use your financial calculator to figure the monthly payments,assuming they get a 6.5%,30-year mortgage.

Soon after signing a sales contract,homebuyers often have buyer's remorse as they question whether they have done the right thing.

The real estate commission charged for selling new homes than is generally lower than for selling previously occupied homes.

In a condominium and townhome,the buyer receives title to an individual unit and joint ownership of the common areas.

You will need to purchase homeowners insurance equal to the purchase price of the house you are buying.

The latest model used cars are typically sold by independent used car lots.

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. -Terminating a lease early is typically [difficult | easy].

A financial advantage of renting compared to purchasing housing is

If a lender requires that mortgage payments cannot exceed 30% of gross income and total loan payments cannot exceed 38% of gross income,calculate the monthly payment for which a person with the following financial data could qualify.

The most common loan term for home mortgages is 30 years.

Early termination clauses on an auto lease typically apply to cars that are stolen or totaled in an accident as well as when you just want to return the vehicle before the end of the lease.

The Veterans Administration guarantees mortgage loans given to qualified veterans.

The term condominium refers to a style of architecture.

A real estate sales contract will include

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