Question 1

Over the past decade,the number of new car sales are down and the number of new car leases are up.What is probably the main reason why this is true?

Accepted Answer

A)  The salesman makes a higher commission when cars are leased. 
B)  The manufacturers prefer it when people lease instead of purchase. 
C)  New cars are getting so expensive that the average person can't afford to buy them. 
D)  Both A and B are correct. 
A)  The salesman makes a higher commission when cars are leased. 
B)  The manufacturers prefer it when people lease instead of purchase. 
C)  New cars are getting so expensive that the average person can't afford to buy them. 
D)  Both A and B are correct.

Question 2

You have an annual gross income of $36,000.Using the 28/36 rule for maximum mortgage payment (PITI)estimation,what is your maximum PITI payment using your monthly gross income as a guide (28%)?

Accepted Answer

A)  $840 
B)  $1,080 
C)  $680 
D)  $640 
E)  $880 
A)  $840 
B)  $1,080 
C)  $680 
D)  $640 
E)  $880

Question 3

Tenants are guaranteed to get their full deposit back no matter the condition of the unit upon moving out.

Accepted Answer

A) True 
 B)False

Question 4

You are planning on starting your own business in 18 months and you intend to purchase a new home.You have looked carefully at your budget and have determined that you can afford a PITI of $900 per month.Your banker has told you that you can easily qualify for a PITI of $1,150 per month.Which of the following is the most reasonable explanation for this discrepancy?

Accepted Answer

A)  Your banker knows you really would be happier in a more expensive house. 
B)  Your banker is not aware of your other long-term financial goals. 
C)  Your banker's number is more accurate than your number. 
D)  None of the above is a reasonable explanation. 
A)  Your banker knows you really would be happier in a more expensive house. 
B)  Your banker is not aware of your other long-term financial goals. 
C)  Your banker's number is more accurate than your number. 
D)  None of the above is a reasonable explanation.

Question 5

A deposit included with an offer to buy that assures the seller that the buyer is serious about buying the house is called

Accepted Answer

A)  assurance deposit. 
B)  buyer's assurance. 
C)  home deposit. 
D)  earnest money. 
E)  none of the above. 
A)  assurance deposit. 
B)  buyer's assurance. 
C)  home deposit. 
D)  earnest money. 
E)  none of the above.

Question 6

Why is important to determine your housing needs not only for the present but also for the next several years?

Accepted Answer

The closing costs and selling fees assoc

Question 7

Suppose that you are at the end of your automobile lease.The leasing company has just informed you that the car's market value is greater than its residual value and they will be sending you a refund.What type of lease did you have?

Accepted Answer

A)  Closed-end lease 
B)  Open-end lease 
C)  Walk-away lease 
D)  Residual lease 
E)  None of the above 
A)  Closed-end lease 
B)  Open-end lease 
C)  Walk-away lease 
D)  Residual lease 
E)  None of the above

Question 8

Explain why the 28/36 percent rule is so important to understand.

Accepted Answer

A reputable lender wants to make sure th

Question 9

Automobile leasing is actually just a long-term rental agreement with the lessor.

Accepted Answer

A) True 
 B)False

Question 10

Give the major financial advantages of home ownership.

Accepted Answer

Owning a home is one of the only true ta

Question 11

What are the common options for housing?

Accepted Answer

-Purchase a home.
-B

Question 12

What drawbacks might a co-op have over a house for a family of eight who are relocating to a new area and need to purchase a home?

Accepted Answer

A)  More expensive to purchase 
B)  More expensive to operate and maintain 
C)  Less freedom to make changes and less privacy 
D)  No ownership of shares in the corporation 
A)  More expensive to purchase 
B)  More expensive to operate and maintain 
C)  Less freedom to make changes and less privacy 
D)  No ownership of shares in the corporation

Question 13

A condominium is a good choice of housing for someone seeking an affordable,low-maintenance situation with some shared amenities.

Accepted Answer

A) True 
 B)False

Question 14

Sandra Smith wants to know the purpose of a title search.What would you tell her?

Accepted Answer

A)  To gain a clear title to the property 
B)  To make sure the person selling the property really owns it 
C)  To protect you against challenges to the title 
D)  All of the above 
A)  To gain a clear title to the property 
B)  To make sure the person selling the property really owns it 
C)  To protect you against challenges to the title 
D)  All of the above

Question 15

Thomas took a new job in Iowa.He is buying his first home.He has qualified for an APR of 4.6%.He plans on making payments for the next 20 years.He anticipates that he can afford a payment of $550.00.How much of a mortgage will Thomas qualify for?

Accepted Answer

A)  $56,990 
B)  $75,210 
C)  $86,199 
D)  $110,224 
A)  $56,990 
B)  $75,210 
C)  $86,199 
D)  $110,224

Question 16

Select the one cost that is not involved in home ownership.

Accepted Answer

A)  Down payment 
B)  Closing/settlement costs 
C)  Rental deposit 
D)  Points/discount points 
E)  Loan origination fee 
A)  Down payment 
B)  Closing/settlement costs 
C)  Rental deposit 
D)  Points/discount points 
E)  Loan origination fee

Question 17

Which of the following factors plays a role in determining the monthly lease payment of a car?

Accepted Answer

A)  The agreed-upon price of the vehicle 
B)  The length of the lease 
C)  Your down payment plus any trade-in allowance or rebate 
D)  The value of the vehicle at the end of the lease 
E)  All of the above 
A)  The agreed-upon price of the vehicle 
B)  The length of the lease 
C)  Your down payment plus any trade-in allowance or rebate 
D)  The value of the vehicle at the end of the lease 
E)  All of the above

Question 18

Stretching a car loan from 48 months to 60 months means the car will end up resulting in a smaller monthly payment.

Accepted Answer

A) True 
 B)False

Question 19

A fixed-rate mortgage is harder to budget for than an adjustable rate mortgage.

Accepted Answer

A) True 
 B)False

Question 20

The typical down payment is 20% for traditional mortgage loans.

Accepted Answer

A) True 
 B)False

Over the past decade,the number of new car sales are down and the number of new car leases are up.What is probably the main reason why this is true?

You have an annual gross income of $36,000.Using the 28/36 rule for maximum mortgage payment (PITI)estimation,what is your maximum PITI payment using your monthly gross income as a guide (28%)?

Tenants are guaranteed to get their full deposit back no matter the condition of the unit upon moving out.

A deposit included with an offer to buy that assures the seller that the buyer is serious about buying the house is called

Why is important to determine your housing needs not only for the present but also for the next several years?

Suppose that you are at the end of your automobile lease.The leasing company has just informed you that the car's market value is greater than its residual value and they will be sending you a refund.What type of lease did you have?

Explain why the 28/36 percent rule is so important to understand.

Automobile leasing is actually just a long-term rental agreement with the lessor.

Give the major financial advantages of home ownership.

What are the common options for housing?

What drawbacks might a co-op have over a house for a family of eight who are relocating to a new area and need to purchase a home?

A condominium is a good choice of housing for someone seeking an affordable,low-maintenance situation with some shared amenities.

Sandra Smith wants to know the purpose of a title search.What would you tell her?

Thomas took a new job in Iowa.He is buying his first home.He has qualified for an APR of 4.6%.He plans on making payments for the next 20 years.He anticipates that he can afford a payment of $550.00.How much of a mortgage will Thomas qualify for?

Select the one cost that is not involved in home ownership.

Which of the following factors plays a role in determining the monthly lease payment of a car?

Stretching a car loan from 48 months to 60 months means the car will end up resulting in a smaller monthly payment.

A fixed-rate mortgage is harder to budget for than an adjustable rate mortgage.

The typical down payment is 20% for traditional mortgage loans.

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

Over the past decade,the number of new car sales are down and the number of new car leases are up.What is probably the main reason why this is true?

You have an annual gross income of $36,000.Using the 28/36 rule for maximum mortgage payment (PITI)estimation,what is your maximum PITI payment using your monthly gross income as a guide (28%)?

Tenants are guaranteed to get their full deposit back no matter the condition of the unit upon moving out.

A deposit included with an offer to buy that assures the seller that the buyer is serious about buying the house is called

Why is important to determine your housing needs not only for the present but also for the next several years?

Suppose that you are at the end of your automobile lease.The leasing company has just informed you that the car's market value is greater than its residual value and they will be sending you a refund.What type of lease did you have?

Explain why the 28/36 percent rule is so important to understand.

Automobile leasing is actually just a long-term rental agreement with the lessor.

Give the major financial advantages of home ownership.

What are the common options for housing?

What drawbacks might a co-op have over a house for a family of eight who are relocating to a new area and need to purchase a home?

A condominium is a good choice of housing for someone seeking an affordable,low-maintenance situation with some shared amenities.

Sandra Smith wants to know the purpose of a title search.What would you tell her?

Thomas took a new job in Iowa.He is buying his first home.He has qualified for an APR of 4.6%.He plans on making payments for the next 20 years.He anticipates that he can afford a payment of $550.00.How much of a mortgage will Thomas qualify for?

Select the one cost that is not involved in home ownership.

Which of the following factors plays a role in determining the monthly lease payment of a car?

Stretching a car loan from 48 months to 60 months means the car will end up resulting in a smaller monthly payment.

A fixed-rate mortgage is harder to budget for than an adjustable rate mortgage.

The typical down payment is 20% for traditional mortgage loans.

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