Question 1

In many states rental deposits are to be kept in a bank account separate from the landlord's general funds.

Accepted Answer

A) True 
 B)False

Question 2

What would be the best housing choice for a young family with children?

Accepted Answer

A)  A home in a questionable school district. 
B)  A condominium that caters to young adults with active lifestyles. 
C)  A co-op with little privacy. 
D)  A house in a neighborhood with families that have children. 
A)  A home in a questionable school district. 
B)  A condominium that caters to young adults with active lifestyles. 
C)  A co-op with little privacy. 
D)  A house in a neighborhood with families that have children.

Question 3

Which of the following is not an advantage of living in a condo?

Accepted Answer

A)  Limited maintenance 
B)  Building equity for resale and investment 
C)  Direct ownership of a specific unit 
D)  Freedom from neighbors 
A)  Limited maintenance 
B)  Building equity for resale and investment 
C)  Direct ownership of a specific unit 
D)  Freedom from neighbors

Question 4

Daniel is due to receive the balance of his trust fund in 5 years;as a result he has taken out a(n)________ mortgage where he has made small payments for several years and will pay off the balance in one large payment with his trust funds.

Accepted Answer

A)  ARM 
B)  graduated payment 
C)  shared appreciation 
D)  fixed rate 
E)  balloon payment 
A)  ARM 
B)  graduated payment 
C)  shared appreciation 
D)  fixed rate 
E)  balloon payment

Question 5

Private mortgage insurance typically is not needed with a down payment of 20% or larger.Why?

Accepted Answer

A)  Not true, all mortgage loans require PMI. 
B)  Buyers who have large down payments don't choose the extra insurance. 
C)  Buyers who invest large down payments are more motivated to make their mortgage payments. 
D)  All of the above 
E)  None of the above 
A)  Not true, all mortgage loans require PMI. 
B)  Buyers who have large down payments don't choose the extra insurance. 
C)  Buyers who invest large down payments are more motivated to make their mortgage payments. 
D)  All of the above 
E)  None of the above

Question 6

One of the main barriers to home ownership is the down payment.

Accepted Answer

A) True 
 B)False

Question 7

Abraham is buying a new truck.The sale price for the truck is $23,410.His bank is loaning him the money at an APR of 6.5 for 5 years.How much will Abraham's monthly truck payment be?

Accepted Answer

A)  $229.36 
B)  $375.88 
C)  $307.65 
D)  $402.35 
E)  $458.04 
A)  $229.36 
B)  $375.88 
C)  $307.65 
D)  $402.35 
E)  $458.04

Question 8

Leasing a car may make sense for some people but there are disadvantages to leasing.What are the disadvantages to leasing a car verses purchasing the car outright?

Accepted Answer

When you lease the car you never build e

Question 9

________ is a publication that provides unbiased ratings and recommendations for a host of products and services

Accepted Answer

A)  USA Consumer 
B)  Consumer Reports 
C)  People Magazine 
D)  Bloomberg Weekly 
A)  USA Consumer 
B)  Consumer Reports 
C)  People Magazine 
D)  Bloomberg Weekly

Question 10

If the roof of your condominium building needs expensive repairs,then the condominium board will pay for repairs at no expense to you.

Accepted Answer

A) True 
 B)False

Question 11

Write a paragraph giving at least five important tips on buying a new car.

Accepted Answer

Find out the dealer's invoice price for

Question 12

You can only get an ARM loan from a predatory lender.

Accepted Answer

A) True 
 B)False

Question 13

What kind of valuable information can you find online at websites such as Edmunds.com or Autosite.com concerning smart buying for automobiles?

Accepted Answer

A)  The dealer cost and dealer holdback for the automobile you are interested in. 
B)  The trade-in value on your current automobile. 
C)  The final price you will pay for the automobile at the dealership. 
D)  Only A and B are correct. 
E)  All of the above are correct. 
A)  The dealer cost and dealer holdback for the automobile you are interested in. 
B)  The trade-in value on your current automobile. 
C)  The final price you will pay for the automobile at the dealership. 
D)  Only A and B are correct. 
E)  All of the above are correct.

Question 14

A mortgage with a 20% down payment will have a higher APR than one with less than 20% down.

Accepted Answer

A) True 
 B)False

Question 15

A mortgage with an APR higher than normal is a subprime mortgage.

Accepted Answer

A) True 
 B)False

Question 16

You currently have an ARM that is charging you 7% with an index rate of 4%,a margin of 3%,and a periodic annual cap of 3.0%.Assume that rates have now increased by 2% during the last seven months.What rate will your ARM be adjusted to?

Accepted Answer

A)  will remain at 7% fixed rate 
B)  8% 
C)  9% 
D)  10% 
E)  11% 
A)  will remain at 7% fixed rate 
B)  8% 
C)  9% 
D)  10% 
E)  11%

Question 17

A real estate short sale is a sale of property where the proceeds from the sale exceed the balance owed on the property.

Accepted Answer

A) True 
 B)False

Question 18

In evaluating your financial history,lenders generally focus on which of the following?

Accepted Answer

A)  Your income 
B)  Your credit report 
C)  Your FICO score 
D)  All of the above 
A)  Your income 
B)  Your credit report 
C)  Your FICO score 
D)  All of the above

Question 19

When making a smart purchase you don't need to consider such charges as delivery fees,installation fees or service costs as these are already included in the purchase price.

Accepted Answer

A) True 
 B)False

Question 20

Suppose that you were thinking about leasing a new vehicle.Which of the following should not be an important consideration?

Accepted Answer

A)  I drive less than 15,000 miles annually. 
B)  I like to get a new car every few years. 
C)  I dislike the hassle of trading-in or selling cars. 
D)  It's the only way I can afford the vehicle that I want. 
E)  I dislike the hassle of maintenance. 
A)  I drive less than 15,000 miles annually. 
B)  I like to get a new car every few years. 
C)  I dislike the hassle of trading-in or selling cars. 
D)  It's the only way I can afford the vehicle that I want. 
E)  I dislike the hassle of maintenance.

In many states rental deposits are to be kept in a bank account separate from the landlord's general funds.

What would be the best housing choice for a young family with children?

Which of the following is not an advantage of living in a condo?

Daniel is due to receive the balance of his trust fund in 5 years;as a result he has taken out a(n)________ mortgage where he has made small payments for several years and will pay off the balance in one large payment with his trust funds.

Private mortgage insurance typically is not needed with a down payment of 20% or larger.Why?

One of the main barriers to home ownership is the down payment.

Abraham is buying a new truck.The sale price for the truck is $23,410.His bank is loaning him the money at an APR of 6.5 for 5 years.How much will Abraham's monthly truck payment be?

Leasing a car may make sense for some people but there are disadvantages to leasing.What are the disadvantages to leasing a car verses purchasing the car outright?

________ is a publication that provides unbiased ratings and recommendations for a host of products and services

If the roof of your condominium building needs expensive repairs,then the condominium board will pay for repairs at no expense to you.

Write a paragraph giving at least five important tips on buying a new car.

You can only get an ARM loan from a predatory lender.

What kind of valuable information can you find online at websites such as Edmunds.com or Autosite.com concerning smart buying for automobiles?

A mortgage with a 20% down payment will have a higher APR than one with less than 20% down.

A mortgage with an APR higher than normal is a subprime mortgage.

You currently have an ARM that is charging you 7% with an index rate of 4%,a margin of 3%,and a periodic annual cap of 3.0%.Assume that rates have now increased by 2% during the last seven months.What rate will your ARM be adjusted to?

A real estate short sale is a sale of property where the proceeds from the sale exceed the balance owed on the property.

In evaluating your financial history,lenders generally focus on which of the following?

When making a smart purchase you don't need to consider such charges as delivery fees,installation fees or service costs as these are already included in the purchase price.

Suppose that you were thinking about leasing a new vehicle.Which of the following should not be an important consideration?

The Financial Planning Process

Measuring Your Financial Health and Making a Plan

Understanding and Appreciating the Time Value of Money

Tax Planning and Strategies

Cash or Liquid Asset Management

Using Credit Cards: The Role of Open Credit

Student and Consumer Loans: The Role of Planned Borrowing

Life and Health Insurance

Property and Liability Insurance

Investment Basics

Investing in Stocks

Investing in Bonds and Other Alternatives

Mutual Funds: An Easy Way to Diversify

Retirement Planning

Estate Planning: Saving Your Heirs Money and Headaches

Financial Life Events Fitting the Pieces Together

Filters

Exam 8: The Home and Automobile Decision

In many states rental deposits are to be kept in a bank account separate from the landlord's general funds.

What would be the best housing choice for a young family with children?

Which of the following is not an advantage of living in a condo?

Daniel is due to receive the balance of his trust fund in 5 years;as a result he has taken out a(n)________ mortgage where he has made small payments for several years and will pay off the balance in one large payment with his trust funds.

Private mortgage insurance typically is not needed with a down payment of 20% or larger.Why?

One of the main barriers to home ownership is the down payment.

Abraham is buying a new truck.The sale price for the truck is $23,410.His bank is loaning him the money at an APR of 6.5 for 5 years.How much will Abraham's monthly truck payment be?

Leasing a car may make sense for some people but there are disadvantages to leasing.What are the disadvantages to leasing a car verses purchasing the car outright?

________ is a publication that provides unbiased ratings and recommendations for a host of products and services

If the roof of your condominium building needs expensive repairs,then the condominium board will pay for repairs at no expense to you.

Write a paragraph giving at least five important tips on buying a new car.

You can only get an ARM loan from a predatory lender.

What kind of valuable information can you find online at websites such as Edmunds.com or Autosite.com concerning smart buying for automobiles?

A mortgage with a 20% down payment will have a higher APR than one with less than 20% down.

A mortgage with an APR higher than normal is a subprime mortgage.

You currently have an ARM that is charging you 7% with an index rate of 4%,a margin of 3%,and a periodic annual cap of 3.0%.Assume that rates have now increased by 2% during the last seven months.What rate will your ARM be adjusted to?

A real estate short sale is a sale of property where the proceeds from the sale exceed the balance owed on the property.

In evaluating your financial history,lenders generally focus on which of the following?

When making a smart purchase you don't need to consider such charges as delivery fees,installation fees or service costs as these are already included in the purchase price.

Suppose that you were thinking about leasing a new vehicle.Which of the following should not be an important consideration?

The Financial Planning Process

Measuring Your Financial Health and Making a Plan

Understanding and Appreciating the Time Value of Money

Tax Planning and Strategies

Cash or Liquid Asset Management

Using Credit Cards: The Role of Open Credit

Student and Consumer Loans: The Role of Planned Borrowing

Life and Health Insurance

Property and Liability Insurance

Investment Basics

Investing in Stocks

Investing in Bonds and Other Alternatives

Mutual Funds: An Easy Way to Diversify

Retirement Planning

Estate Planning: Saving Your Heirs Money and Headaches

Financial Life Events Fitting the Pieces Together

Filters