Question 1

What is the purpose of subletting an apartment?

Accepted Answer

A)  to increase the rent 
B)  to lower maintenance costs 
C)  to convert the units to condominiums 
D)  to meet certain government housing regulations 
E)  to obtain another tenant to complete a lease period 
A)  to increase the rent 
B)  to lower maintenance costs 
C)  to convert the units to condominiums 
D)  to meet certain government housing regulations 
E)  to obtain another tenant to complete a lease period

Question 2

A lease only protects the rights of the tenant.

Accepted Answer

A) True 
 B)False

Question 3

The purpose of a counteroffer is to

Accepted Answer

A)  negotiate the purchase price. 
B)  reduce mortgage payments. 
C)  lower real estate property taxes. 
D)  avoid paying points at closing. 
E)  avoid paying the real estate agent's commission. 
A)  negotiate the purchase price. 
B)  reduce mortgage payments. 
C)  lower real estate property taxes. 
D)  avoid paying points at closing. 
E)  avoid paying the real estate agent's commission.

Question 4

An escrow account is designed to reduce the cost of a mortgage.

Accepted Answer

A) True 
 B)False

Question 5

Renting would be most appropriate for people who

Accepted Answer

A)  have limited funds currently available. 
B)  have difficulty establishing credit. 
C)  want to reduce their taxes. 
D)  enjoy remodeling their residence. 
E)  desire the financial benefits of increased equity. 
A)  have limited funds currently available. 
B)  have difficulty establishing credit. 
C)  want to reduce their taxes. 
D)  enjoy remodeling their residence. 
E)  desire the financial benefits of increased equity.

Question 6

Which document is used to transfer ownership of property from one party to another?

Accepted Answer

A)  Title 
B)  Escrow account 
C)  Settlement statement 
D)  Appraisal 
E)  Deed 
A)  Title 
B)  Escrow account 
C)  Settlement statement 
D)  Appraisal 
E)  Deed

Question 7

Which of the following is an example of a conventional mortgage?

Accepted Answer

A)  a First Home mortgage 
B)  a buy down 
C)  a fixed rate mortgage 
D)  a shared appreciation mortgage 
E)  a home equity loan 
A)  a First Home mortgage 
B)  a buy down 
C)  a fixed rate mortgage 
D)  a shared appreciation mortgage 
E)  a home equity loan

Question 8

Closing costs are the fees and charges owed when making the decision to refinance a home.

Accepted Answer

A) True 
 B)False

Question 9

A lease always gives the landlord the right to:

Accepted Answer

A)  to increase the rent 
B)  to evict the tenant at any time 
C)  to take legal action against a tenant for nonpayment of rent 
D)  to ignore government housing regulations 
E)  cancel the lease 
A)  to increase the rent 
B)  to evict the tenant at any time 
C)  to take legal action against a tenant for nonpayment of rent 
D)  to ignore government housing regulations 
E)  cancel the lease

Question 10

Which of the following is an example of a closing cost?

Accepted Answer

A)  origination fee 
B)  mortgage application fee 
C)  earnest money 
D)  title insurance 
E)  down payment 
A)  origination fee 
B)  mortgage application fee 
C)  earnest money 
D)  title insurance 
E)  down payment

Question 11

Current interest rates can affect the price of a home.

Accepted Answer

A) True 
 B)False

Question 12

A common opportunity cost associated with renting is

Accepted Answer

A)  interest lost on the down payment. 
B)  interest lost on closing costs. 
C)  property taxes. 
D)  maintenance costs. 
E)  interest lost on the security deposit. 
A)  interest lost on the down payment. 
B)  interest lost on closing costs. 
C)  property taxes. 
D)  maintenance costs. 
E)  interest lost on the security deposit.

Question 13

The main financial benefit of owning is

Accepted Answer

A)  lower living expenses. 
B)  don't pay GST. 
C)  investment value growth. 
D)  lower initial costs. 
E)  high financial commitment. 
A)  lower living expenses. 
B)  don't pay GST. 
C)  investment value growth. 
D)  lower initial costs. 
E)  high financial commitment.

Question 14

The most commonly considered factor when selecting a home is the

Accepted Answer

A)  size of the home. 
B)  condition of the home. 
C)  location of the home. 
D)  local zoning laws. 
E)  current interest rates. 
A)  size of the home. 
B)  condition of the home. 
C)  location of the home. 
D)  local zoning laws. 
E)  current interest rates.

Question 15

A real estate agent can best assist a homebuyer by

Accepted Answer

A)  assisting in getting a mortgage 
B)  setting the purchase price. 
C)  offering new home warranties. 
D)  assisting you in obtaining financing. 
E)  paying the first month's mortgage payment. 
A)  assisting in getting a mortgage 
B)  setting the purchase price. 
C)  offering new home warranties. 
D)  assisting you in obtaining financing. 
E)  paying the first month's mortgage payment.

Question 16

Which of the following would increase the speed of equity growth for a homebuyer?

Accepted Answer

A)  making a down payment of 10 percent instead of 20 percent 
B)  obtaining a mortgage interest rate of 9 percent instead of 8 percent 
C)  obtaining a 20-year mortgage instead of a 25-year mortgage 
D)  making larger deposits to the escrow account 
E)  making smaller deposit to the escrow account 
A)  making a down payment of 10 percent instead of 20 percent 
B)  obtaining a mortgage interest rate of 9 percent instead of 8 percent 
C)  obtaining a 20-year mortgage instead of a 25-year mortgage 
D)  making larger deposits to the escrow account 
E)  making smaller deposit to the escrow account

Question 17

Which of the following would increase the speed of equity growth for a homebuyer?

Accepted Answer

A)  making a down payment of 10 percent instead of 20 percent 
B)  obtaining a mortgage interest rate of 7 percent instead of 8 percent 
C)  obtaining a 25-year mortgage instead of a 20-year mortgage 
D)  making larger deposits to the escrow account 
E)  making smaller deposit to the escrow account 
A)  making a down payment of 10 percent instead of 20 percent 
B)  obtaining a mortgage interest rate of 7 percent instead of 8 percent 
C)  obtaining a 25-year mortgage instead of a 20-year mortgage 
D)  making larger deposits to the escrow account 
E)  making smaller deposit to the escrow account

Question 18

Zoning laws are restrictions on how the property area can be used.

Accepted Answer

A) True 
 B)False

Question 19

Which of the following is an example of a closing cost?

Accepted Answer

A)  origination fee 
B)  mortgage application fee 
C)  earnest money 
D)  deed recording fee 
E)  down payment 
A)  origination fee 
B)  mortgage application fee 
C)  earnest money 
D)  deed recording fee 
E)  down payment

Question 20

A conventional mortgage usually involves

Accepted Answer

A)  a variable interest rate. 
B)  a government guarantee. 
C)  a balloon payment. 
D)  equal payments. 
E)  a payment cap. 
A)  a variable interest rate. 
B)  a government guarantee. 
C)  a balloon payment. 
D)  equal payments. 
E)  a payment cap.

What is the purpose of subletting an apartment?

A lease only protects the rights of the tenant.

The purpose of a counteroffer is to

An escrow account is designed to reduce the cost of a mortgage.

Renting would be most appropriate for people who

Which document is used to transfer ownership of property from one party to another?

Which of the following is an example of a conventional mortgage?

Closing costs are the fees and charges owed when making the decision to refinance a home.

A lease always gives the landlord the right to:

Which of the following is an example of a closing cost?

Current interest rates can affect the price of a home.

A common opportunity cost associated with renting is

The main financial benefit of owning is

The most commonly considered factor when selecting a home is the

A real estate agent can best assist a homebuyer by

Which of the following would increase the speed of equity growth for a homebuyer?

Which of the following would increase the speed of equity growth for a homebuyer?

Zoning laws are restrictions on how the property area can be used.

Which of the following is an example of a closing cost?

A conventional mortgage usually involves

Personal Financial Planning: An Introduction

Money Management Strategy: Financial Statements and Budgeting

Planning Your Tax Strategy

The Banking Services of Financial Institutions

Introduction to Consumer Credit

Choosing a Source Credit: the Costs of Credit Alternatives

Home and Automobile Insurance

Life, Health, and Disability Insurance

Fundamentals of Investing

Investing in Stocks

Investing in Bonds

Investing in Mutual Funds

Retirement Planning

Estate Planning

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Exam 7: The Finances of Housing

What is the purpose of subletting an apartment?

A lease only protects the rights of the tenant.

The purpose of a counteroffer is to

An escrow account is designed to reduce the cost of a mortgage.

Renting would be most appropriate for people who

Which document is used to transfer ownership of property from one party to another?

Which of the following is an example of a conventional mortgage?

Closing costs are the fees and charges owed when making the decision to refinance a home.

A lease always gives the landlord the right to:

Which of the following is an example of a closing cost?

Current interest rates can affect the price of a home.

A common opportunity cost associated with renting is

The main financial benefit of owning is

The most commonly considered factor when selecting a home is the

A real estate agent can best assist a homebuyer by

Which of the following would increase the speed of equity growth for a homebuyer?

Which of the following would increase the speed of equity growth for a homebuyer?

Zoning laws are restrictions on how the property area can be used.

Which of the following is an example of a closing cost?

A conventional mortgage usually involves

Personal Financial Planning: An Introduction

Money Management Strategy: Financial Statements and Budgeting

Planning Your Tax Strategy

The Banking Services of Financial Institutions

Introduction to Consumer Credit

Choosing a Source Credit: the Costs of Credit Alternatives

Home and Automobile Insurance

Life, Health, and Disability Insurance

Fundamentals of Investing

Investing in Stocks

Investing in Bonds

Investing in Mutual Funds

Retirement Planning

Estate Planning

Filters