Question 1

There are large regional differences in the price of housing.

Accepted Answer

A) True 
 B)False

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.
-The cost of auto insurance on a car should be investigate [before | after] purchasing a new vehicle.

Accepted Answer

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

Question 3

If you are buying a house that is for sale by the owners,the earnest money goes directly to the seller.

Accepted Answer

A) True 
 B)False

Question 4

____ could be deducted on your Federal income taxes.

Accepted Answer

A)  Rent payments 
B)  Mortgage interest 
C)  Homeowner's insurance 
D)  Utility bills 
E)  None of these 
A)  Rent payments 
B)  Mortgage interest 
C)  Homeowner's insurance 
D)  Utility bills 
E)  None of these

Question 5

____ is an up-front,one-time cost of home ownership.

Accepted Answer

A)  The down payment 
B)  Closing costs 
C)  Property taxes 
D)  Insurance 
E)  a and b 
A)  The down payment 
B)  Closing costs 
C)  Property taxes 
D)  Insurance 
E)  a and b

Question 6

____ is an ongoing cost of home ownership.

Accepted Answer

A)  The down payment 
B)  Closing costs 
C)  Property taxes 
D)  Sales taxes 
E)  Points 
A)  The down payment 
B)  Closing costs 
C)  Property taxes 
D)  Sales taxes 
E)  Points

Question 7

Capitalized cost on an auto lease is similar to the interest rate on a loan.

Accepted Answer

A) True 
 B)False

Question 8

The monthly interest on your mortgage was $690;you paid $650.The result is

Accepted Answer

A)  growing equity. 
B)  negative amortization. 
C)  fixed interest expense. 
D)  shrinking principal. 
E)  indexed equity. 
A)  growing equity. 
B)  negative amortization. 
C)  fixed interest expense. 
D)  shrinking principal. 
E)  indexed equity.

Question 9

Low-balling is a sales technique where the salesperson quotes a low price for a car to get you to make an offer,and negotiates the price upward prior to signing the sales agreement.

Accepted Answer

A) True 
 B)False

Question 10

A real estate sales contract contains the terms and provisions which establish the sale's transaction.

Accepted Answer

A) True 
 B)False

Question 11

Judy has $2,000 for a down payment on a vehicle and she can afford monthly payments of $400.She wants to finance a vehicle over no more than 4 years.If lenders are currently offering 6 percent interest on 5-year loans,what is the maximum price Judy can pay for a vehicle?

Accepted Answer

PMT= $400,I=6/12,N=6

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.
-Paying mortgage points to get a lower rate of interest makes more sense if you expect to live in a home for a [longer | shorter] period of time.

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 Real Estate Settlement Procedures Act governs [mortgage regulations | mortgage closings].

Accepted Answer

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

Question 14

Anna purchased a vehicle six years ago for $25,000.She recently sold it for $5,000.Over the years,she paid a total of $5,800 on auto insurance,$4,800 on gas and maintenance,and $2,500 in interest.What was her depreciation cost on this vehicle?

Accepted Answer

A)  $ 5,000 
B)  $10,800 
C)  $15,000 
D)  $20,000 
E)  $25,000 
A)  $ 5,000 
B)  $10,800 
C)  $15,000 
D)  $20,000 
E)  $25,000

Question 15

One can arrange auto loans through

Accepted Answer

A)  auto dealers. 
B)  banks. 
C)  credit unions. 
D)  consumer finance companies. 
E)  all of the above. 
A)  auto dealers. 
B)  banks. 
C)  credit unions. 
D)  consumer finance companies. 
E)  all of the above.

Question 16

Adjustable-rate mortgages with interest rate caps can lead to negative amortization.

Accepted Answer

A) True 
 B)False

Question 17

The following is/are major source(s)of home mortgages:

Accepted Answer

A)  Commercial Banks 
B)  Thrift Institutions 
C)  Mortgage Bankers and Brokers 
D)  Credit Unions 
E)  All of the above 
A)  Commercial Banks 
B)  Thrift Institutions 
C)  Mortgage Bankers and Brokers 
D)  Credit Unions 
E)  All of the above

Question 18

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

Accepted Answer

A)  $13,528 
B)  $14,400 
C)  $16,028 
D)  $17,028 
E)  $18,028 
A)  $13,528 
B)  $14,400 
C)  $16,028 
D)  $17,028 
E)  $18,028

Question 19

____ could be deducted on your Federal income taxes.

Accepted Answer

A)  Rent payments 
B)  Homeowner's insurance 
C)  Real estate taxes 
D)  Utility bills 
E)  None of these 
A)  Rent payments 
B)  Homeowner's insurance 
C)  Real estate taxes 
D)  Utility bills 
E)  None of these

Question 20

Automobiles tend to decrease in value over time.

Accepted Answer

A) True 
 B)False

There are large regional differences in the price of housing.

If you are buying a house that is for sale by the owners,the earnest money goes directly to the seller.

____ could be deducted on your Federal income taxes.

____ is an up-front,one-time cost of home ownership.

____ is an ongoing cost of home ownership.

Capitalized cost on an auto lease is similar to the interest rate on a loan.

The monthly interest on your mortgage was $690;you paid $650.The result is

Low-balling is a sales technique where the salesperson quotes a low price for a car to get you to make an offer,and negotiates the price upward prior to signing the sales agreement.

A real estate sales contract contains the terms and provisions which establish the sale's transaction.

Judy has $2,000 for a down payment on a vehicle and she can afford monthly payments of $400.She wants to finance a vehicle over no more than 4 years.If lenders are currently offering 6 percent interest on 5-year loans,what is the maximum price Judy can pay for a vehicle?

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 Real Estate Settlement Procedures Act governs [mortgage regulations | mortgage closings].

Anna purchased a vehicle six years ago for $25,000.She recently sold it for $5,000.Over the years,she paid a total of $5,800 on auto insurance,$4,800 on gas and maintenance,and $2,500 in interest.What was her depreciation cost on this vehicle?

One can arrange auto loans through

Adjustable-rate mortgages with interest rate caps can lead to negative amortization.

The following is/are major source(s)of home mortgages:

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

____ could be deducted on your Federal income taxes.

Automobiles tend to decrease in value over time.

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

There are large regional differences in the price of housing.

If you are buying a house that is for sale by the owners,the earnest money goes directly to the seller.

____ could be deducted on your Federal income taxes.

____ is an up-front,one-time cost of home ownership.

____ is an ongoing cost of home ownership.

Capitalized cost on an auto lease is similar to the interest rate on a loan.

The monthly interest on your mortgage was $690;you paid $650.The result is

Low-balling is a sales technique where the salesperson quotes a low price for a car to get you to make an offer,and negotiates the price upward prior to signing the sales agreement.

A real estate sales contract contains the terms and provisions which establish the sale's transaction.

Judy has $2,000 for a down payment on a vehicle and she can afford monthly payments of $400.She wants to finance a vehicle over no more than 4 years.If lenders are currently offering 6 percent interest on 5-year loans,what is the maximum price Judy can pay for a vehicle?

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 Real Estate Settlement Procedures Act governs [mortgage regulations | mortgage closings].

Anna purchased a vehicle six years ago for $25,000.She recently sold it for $5,000.Over the years,she paid a total of $5,800 on auto insurance,$4,800 on gas and maintenance,and $2,500 in interest.What was her depreciation cost on this vehicle?

One can arrange auto loans through

Adjustable-rate mortgages with interest rate caps can lead to negative amortization.

The following is/are major source(s)of home mortgages:

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

____ could be deducted on your Federal income taxes.

Automobiles tend to decrease in value over time.

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