Question 1

Most homeowners get financial benefit from owning a home as it results in:

Accepted Answer

A) the creation of a recession proof liability. 
B) saving tax liability by tax evasion. 
C) tax savings due to tax shelter. 
D) reducing non-depreciating assets. 
E) adding to the hidden costs of mortgage payments. 
A) the creation of a recession proof liability. 
B) saving tax liability by tax evasion. 
C) tax savings due to tax shelter. 
D) reducing non-depreciating assets. 
E) adding to the hidden costs of mortgage payments.

Question 2

Earnest money is the sum of money the home buyer pledges with the ____________. ​

Accepted Answer

A) lender to guarantee the purchase 
B) seller to indicate the intent of purchase 
C) realtor for finding the desired home within a preset budget 
D) lender to originate the loan 
A) lender to guarantee the purchase 
B) seller to indicate the intent of purchase 
C) realtor for finding the desired home within a preset budget 
D) lender to originate the loan

Question 3

The financing rate on a lease similar to the interest rate on a loan is called the _____.

Accepted Answer

A) lease point 
B) residual rate 
C) money factor 
D) purchase option 
E) capitalized cost 
A) lease point 
B) residual rate 
C) money factor 
D) purchase option 
E) capitalized cost

Question 4

A behavioral bias in which an individual tends to allow an initial estimate (of value or price)to dominate the subsequent assessment (of value or price)regardless of new information to the contrary is called _____.

Accepted Answer

A) foreclosing 
B) anchoring 
C) depreciating 
D) leasing 
E) cooperating 
A) foreclosing 
B) anchoring 
C) depreciating 
D) leasing 
E) cooperating

Question 5

If your lender charges 1.5 mortgage points on a house selling for $100,000,on which there is a $90,000 loan,the points will cost you ____________. ​

Accepted Answer

A) $1,350 
B) $1,500 
C) $2,850 
D) $150 
A) $1,350 
B) $1,500 
C) $2,850 
D) $150

Question 6

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 percent,4-year loan from a credit society,what is the maximum loan amount Jana can afford? (Round off the answer to nearest units place.)

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 7

Which of the following is a fixed auto ownership cost?

Accepted Answer

A) The cost of fuel 
B) The cost of oil 
C) The cost of automobile insurance 
D) The maintenance and repair costs 
E) The cost of tires 
A) The cost of fuel 
B) The cost of oil 
C) The cost of automobile insurance 
D) The maintenance and repair costs 
E) The cost of tires

Question 8

____________ are ongoing costs of home ownership. ​

Accepted Answer

A) Down payments 
B) Closing costs 
C) Taxes on capital gains 
D) Property taxes and insurance 
A) Down payments 
B) Closing costs 
C) Taxes on capital gains 
D) Property taxes and insurance

Question 9

Jackie is in the 28 percent marginal tax bracket and has no other itemized deductions except those related to her home.If she is eligible for a standard deduction worth $6,100 and she incurs the following costs related to housing,how much tax savings will she receive as a result of her home purchase? $$\begin{array} { | l | l | l | } 
\hline \text { Mortgage interest } & & \$ 14,000 \
\hline \text { Principal repayment } & & \$ 800 \
\hline \text { Homeowner's insurance } & \$ 1,000 & \
\hline \text { Real estate taxes } & & \$ 4,000 \
\hline \text { Homeowner's association fees } & \$ 1,200 & \
\hline
\end{array}$$

Accepted Answer

A) $13,250 
B) $5,040 
C) $3,332 
D) $2,800 
E) $0 
A) $13,250 
B) $5,040 
C) $3,332 
D) $2,800 
E) $0

Question 10

The _____ governs closings on owner-occupied houses,condominiums,and apartment buildings of four units or fewer.

Accepted Answer

A) Equal Credit Opportunity Act 
B) Truth-in-Lending Act 
C) Real Estate Settlement Procedures Act 
D) Mortgage Lenders Act 
E) Real Estate Agents Act 
A) Equal Credit Opportunity Act 
B) Truth-in-Lending Act 
C) Real Estate Settlement Procedures Act 
D) Mortgage Lenders Act 
E) Real Estate Agents Act

Question 11

The ____________ Act governs closings on owner-occupied houses,condominiums,and apartment buildings of four units or fewer. ​

Accepted Answer

A) Equal Credit Opportunity 
B) Truth-in-Lending 
C) Real Estate Settlement Procedures 
D) Mortgage Lenders 
A) Equal Credit Opportunity 
B) Truth-in-Lending 
C) Real Estate Settlement Procedures 
D) Mortgage Lenders

Question 12

Barb and Bob want to purchase a new home but don't know how much mortgage they can qualify for.The lender requires that the total installment of loan payments do not exceed 35 percent of the monthly income.Based on Barb and Bob's financial data given below,what is the maximum monthly mortgage payment for which they can qualify? $$\begin{array} { | l | l | } 
\hline \text { Monthly Gross Income } & \$ 4,000 \
\hline \text { Car payment } & \$ 350 \
\hline \text { Student loan payment } & \$ 200 \
\hline
\end{array}$$

Accepted Answer

A) $1,400 
B) $1,208 
C) $1,502 
D) $850 
E) $500 
A) $1,400 
B) $1,208 
C) $1,502 
D) $850 
E) $500

Most homeowners get financial benefit from owning a home as it results in:

Earnest money is the sum of money the home buyer pledges with the ____________.

The financing rate on a lease similar to the interest rate on a loan is called the _____.

A behavioral bias in which an individual tends to allow an initial estimate (of value or price)to dominate the subsequent assessment (of value or price)regardless of new information to the contrary is called _____.

If your lender charges 1.5 mortgage points on a house selling for $100,000,on which there is a $90,000 loan,the points will cost you ____________.

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 percent,4-year loan from a credit society,what is the maximum loan amount Jana can afford? (Round off the answer to nearest units place.)

Which of the following is a fixed auto ownership cost?

____________ are ongoing costs of home ownership.

The _____ governs closings on owner-occupied houses,condominiums,and apartment buildings of four units or fewer.

The ____________ Act governs closings on owner-occupied houses,condominiums,and apartment buildings of four units or fewer.

Understanding the Financial Planning Process

Using Financial Statements and Budgets

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, ETFS and Real Estate

Planning for Retirement

Preserving Your Estate

Filters

Exam 5: Making Automobile and Housing Decisions

Most homeowners get financial benefit from owning a home as it results in:

Earnest money is the sum of money the home buyer pledges with the ____________. ​

The financing rate on a lease similar to the interest rate on a loan is called the _____.

A behavioral bias in which an individual tends to allow an initial estimate (of value or price)to dominate the subsequent assessment (of value or price)regardless of new information to the contrary is called _____.

If your lender charges 1.5 mortgage points on a house selling for $100,000,on which there is a $90,000 loan,the points will cost you ____________. ​

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 percent,4-year loan from a credit society,what is the maximum loan amount Jana can afford? (Round off the answer to nearest units place.)

Which of the following is a fixed auto ownership cost?

____________ are ongoing costs of home ownership. ​

The _____ governs closings on owner-occupied houses,condominiums,and apartment buildings of four units or fewer.

The ____________ Act governs closings on owner-occupied houses,condominiums,and apartment buildings of four units or fewer. ​

Understanding the Financial Planning Process

Using Financial Statements and Budgets

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, ETFS and Real Estate

Planning for Retirement

Preserving Your Estate

Filters

Earnest money is the sum of money the home buyer pledges with the ____________.

If your lender charges 1.5 mortgage points on a house selling for $100,000,on which there is a $90,000 loan,the points will cost you ____________.

____________ are ongoing costs of home ownership.

The ____________ Act governs closings on owner-occupied houses,condominiums,and apartment buildings of four units or fewer.