Question 1

Which of the following should one tell the auto salesperson when shopping for a vehicle?

Accepted Answer

A)  The type of vehicle you are interested in purchasing 
B)  Whether you will be trading in your current vehicle 
C)  The type of financing or leasing you prefer 
D)  How much monthly payment you can afford 
E)  All of the above 
A)  The type of vehicle you are interested in purchasing 
B)  Whether you will be trading in your current vehicle 
C)  The type of financing or leasing you prefer 
D)  How much monthly payment you can afford 
E)  All of the above

Question 2

The FHA ____ high loan-to-value ratio mortgages.

Accepted Answer

A)  guarantees 
B)  insures 
C)  subsidizes 
D)  grants 
E)  allows 
A)  guarantees 
B)  insures 
C)  subsidizes 
D)  grants 
E)  allows

Question 3

The greatest fixed cost involved with owning an automobile is usually the monthly loan payments.

Accepted Answer

A) True 
 B)False

Question 4

The type of mortgage that will most likely need to be refinanced is the ____ mortgage.

Accepted Answer

A)  fixed-rate 
B)  adjustable-rate 
C)  balloon-payment 
D)  graduated-payment 
E)  growing-equity 
A)  fixed-rate 
B)  adjustable-rate 
C)  balloon-payment 
D)  graduated-payment 
E)  growing-equity

Question 5

Fixed automobile costs increase as the number of miles driven increase.

Accepted Answer

A) True 
 B)False

Question 6

Financially,you will generally do better by selling your old vehicle yourself rather than trading it in.

Accepted Answer

A) True 
 B)False

Question 7

To make a legally binding offer on a car,you must sign a sales contract that specifies the offering price and all the conditions of your offer.

Accepted Answer

A) True 
 B)False

Question 8

In which of the following situations would you have to pay additional money when returning a vehicle using an open-end lease?

Accepted Answer

A)  residual value is less than expected 
B)  residual value is more than expected 
C)  mileage limits were exceeded 
D)  a and c 
E)  b and c 
A)  residual value is less than expected 
B)  residual value is more than expected 
C)  mileage limits were exceeded 
D)  a and c 
E)  b and c

Question 9

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 total amount of interest you would have to pay would be less with a [25 | 20] year mortgage.

Accepted Answer

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

Question 10

A lender will generally require mortgage insurance if the down payment is less than 20 percent.

Accepted Answer

A) True 
 B)False

Question 11

A money factor of 0.00280 on a lease is equivalent to an annual percentage rate of

Accepted Answer

A)  2.80. 
B)  3.60. 
C)  6.72. 
D)  8.64. 
E)  10.80. 
A)  2.80. 
B)  3.60. 
C)  6.72. 
D)  8.64. 
E)  10.80.

Question 12

A used car from ____ will generally cost less.

Accepted Answer

A)  franchise dealerships 
B)  independent used car lots 
C)  private individuals 
D)  superstores 
E)  lenders 
A)  franchise dealerships 
B)  independent used car lots 
C)  private individuals 
D)  superstores 
E)  lenders

Question 13

A PITI payment is composed of principal,interest,real estate taxes,and insurance.

Accepted Answer

A) True 
 B)False

Question 14

When testing driving a car,it is recommended to make sure it fits into your garage,especially if you're interested in a larger SUV or truck.

Accepted Answer

A) True 
 B)False

Question 15

First-time homebuyers can withdraw up to $25,000 from an IRA without penalty if they are 30 years of age or less.

Accepted Answer

A) True 
 B)False

Question 16

The federal income tax advantage gained from home ownership will depend on the amount of deductible interest and property taxes and your total income.

Accepted Answer

A) True 
 B)False

Question 17

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 earnest money deposit is a payment to the [real estate agent for his services | seller to show good faith when making an offer to buy].

Accepted Answer

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

Question 18

The market price of a house is $125,000 and the homebuyer will borrow $100,000.Two points will equal $2,500.

Accepted Answer

A) True 
 B)False

Question 19

The most popular mortgage loan for financing a home purchase is a(n)

Accepted Answer

A)  conventional fixed-rate loan. 
B)  FHA loan. 
C)  VA loan. 
D)  adjustable-rate loan. 
E)  Fannie Mae loan. 
A)  conventional fixed-rate loan. 
B)  FHA loan. 
C)  VA loan. 
D)  adjustable-rate loan. 
E)  Fannie Mae loan.

Question 20

Earnest money is the sum of money the home buyer deposits with the

Accepted Answer

A)  realtor to view homes. 
B)  realtor for finding the desired home. 
C)  lender to originate the loan. 
D)  seller to indicate intent of purchase. 
E)  lender to guarantee the purchase. 
A)  realtor to view homes. 
B)  realtor for finding the desired home. 
C)  lender to originate the loan. 
D)  seller to indicate intent of purchase. 
E)  lender to guarantee the purchase.

Which of the following should one tell the auto salesperson when shopping for a vehicle?

The FHA ____ high loan-to-value ratio mortgages.

The greatest fixed cost involved with owning an automobile is usually the monthly loan payments.

The type of mortgage that will most likely need to be refinanced is the ____ mortgage.

Fixed automobile costs increase as the number of miles driven increase.

Financially,you will generally do better by selling your old vehicle yourself rather than trading it in.

To make a legally binding offer on a car,you must sign a sales contract that specifies the offering price and all the conditions of your offer.

In which of the following situations would you have to pay additional money when returning a vehicle using an open-end lease?

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 total amount of interest you would have to pay would be less with a [25 | 20] year mortgage.

A lender will generally require mortgage insurance if the down payment is less than 20 percent.

A money factor of 0.00280 on a lease is equivalent to an annual percentage rate of

A used car from ____ will generally cost less.

A PITI payment is composed of principal,interest,real estate taxes,and insurance.

When testing driving a car,it is recommended to make sure it fits into your garage,especially if you're interested in a larger SUV or truck.

First-time homebuyers can withdraw up to $25,000 from an IRA without penalty if they are 30 years of age or less.

The federal income tax advantage gained from home ownership will depend on the amount of deductible interest and property taxes and your total income.

The market price of a house is $125,000 and the homebuyer will borrow $100,000.Two points will equal $2,500.

The most popular mortgage loan for financing a home purchase is a(n)

Earnest money is the sum of money the home buyer deposits with the

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

Which of the following should one tell the auto salesperson when shopping for a vehicle?

The FHA ____ high loan-to-value ratio mortgages.

The greatest fixed cost involved with owning an automobile is usually the monthly loan payments.

The type of mortgage that will most likely need to be refinanced is the ____ mortgage.

Fixed automobile costs increase as the number of miles driven increase.

Financially,you will generally do better by selling your old vehicle yourself rather than trading it in.

To make a legally binding offer on a car,you must sign a sales contract that specifies the offering price and all the conditions of your offer.

In which of the following situations would you have to pay additional money when returning a vehicle using an open-end lease?

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 total amount of interest you would have to pay would be less with a [25 | 20] year mortgage.

A lender will generally require mortgage insurance if the down payment is less than 20 percent.

A money factor of 0.00280 on a lease is equivalent to an annual percentage rate of

A used car from ____ will generally cost less.

A PITI payment is composed of principal,interest,real estate taxes,and insurance.

When testing driving a car,it is recommended to make sure it fits into your garage,especially if you're interested in a larger SUV or truck.

First-time homebuyers can withdraw up to $25,000 from an IRA without penalty if they are 30 years of age or less.

The federal income tax advantage gained from home ownership will depend on the amount of deductible interest and property taxes and your total income.

The market price of a house is $125,000 and the homebuyer will borrow $100,000.Two points will equal $2,500.

The most popular mortgage loan for financing a home purchase is a(n)

Earnest money is the sum of money the home buyer deposits with the

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