Question 1

The sub-prime mortgage crisis in 2007 was caused by

Accepted Answer

A)  a housing bubble 
B)  excessive risk taking by lenders and investors 
C)  loose lending practices 
D)  low interest rates 
E)  all four factors contributed 
A)  a housing bubble 
B)  excessive risk taking by lenders and investors 
C)  loose lending practices 
D)  low interest rates 
E)  all four factors contributed

Question 2

Many people believe that location is the most important factor to consider when selecting a home.

Accepted Answer

A) True 
 B)False

Question 3

Given the following, calculate the TDS ratio. All income and expense items are annual. $$\begin{array} { | l | r | l | r | } 
\hline \text { Gross income } & \mathbf { \$ 4 8 , 0 0 0 } & \text { Bank account } & \mathbf { \$ 1 , 0 0 0 } \
\hline \text { Net income } & \$ 38,000 & \text { Property taxes } & \$ 4,800 \
\hline \text { Heating } & \$ 3,600 & \text { Annual car payment } & \$ 4,200 \
\hline \text { Credit card payments } & \$ 2,400 & \text { Car loan balance } & \$ 10,000 \
\hline \text { Student loan payments } & \$ 2,400 & \text { Mortgage payments } & \$ 18,000 \
\hline
\end{array}$$

Accepted Answer

A)  28% 
B)  41% 
C)  50% 
D)  74% 
E)  84% 
A)  28% 
B)  41% 
C)  50% 
D)  74% 
E)  84%

Question 4

If you sell your home without the use of a real estate agent, you should still make use of a

Accepted Answer

A)  broker. 
B)  insurance agent. 
C)  lawyer. 
D)  contractor. 
E)  rental agent. 
A)  broker. 
B)  insurance agent. 
C)  lawyer. 
D)  contractor. 
E)  rental agent.

Question 5

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 15-year mortgage instead of a 30-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 15-year mortgage instead of a 30-year mortgage 
D)  making larger deposits to the escrow account 
E)  making smaller deposit to the escrow account

Question 6

The purpose of title insurance is to

Accepted Answer

A)  transfer ownership of property. 
B)  reduce the chance of a decrease in property value. 
C)  guarantee the boundaries of the property. 
D)  protect an owner from changes in mortgage interest rates. 
E)  cover the closing costs of a real estate transaction. 
A)  transfer ownership of property. 
B)  reduce the chance of a decrease in property value. 
C)  guarantee the boundaries of the property. 
D)  protect an owner from changes in mortgage interest rates. 
E)  cover the closing costs of a real estate transaction.

Question 7

As William Quintal conducts an investigation of property value factors, most real estate experts tell him that ____________ most influences the housing values in an area.

Accepted Answer

A)  community pride 
B)  style of homes 
C)  quality of schools 
D)  age of neighborhood 
E)  zoning laws 
A)  community pride 
B)  style of homes 
C)  quality of schools 
D)  age of neighborhood 
E)  zoning laws

Question 8

Ease of mobility is an advantage of owning a house.

Accepted Answer

A) True 
 B)False

Question 9

The amount of mortgage a person is eligible for would be increased by

Accepted Answer

A)  higher interest rates. 
B)  a lower down payment. 
C)  high debt obligations. 
D)  a low family income. 
E)  a larger down payment. 
A)  higher interest rates. 
B)  a lower down payment. 
C)  high debt obligations. 
D)  a low family income. 
E)  a larger down payment.

Question 10

Home improvements may contribute more to the value of the home than the cost of the renovations.

Accepted Answer

A) True 
 B)False

Question 11

Renting would be most appropriate for people who

Accepted Answer

A)  own a variety of pets. 
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)  own a variety of pets. 
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 12

Financial guidelines suggest that you should "spend no more than 25 to 30 percent of your take home pay on housing".

Accepted Answer

A) True 
 B)False

Question 13

The purpose of zoning laws is to

Accepted Answer

A)  restrictions on property use. 
B)  encourage new housing development. 
C)  minimize people moving from an area. 
D)  reduce real estate property taxes. 
E)  assist real estate agents in finding homes for sale. 
A)  restrictions on property use. 
B)  encourage new housing development. 
C)  minimize people moving from an area. 
D)  reduce real estate property taxes. 
E)  assist real estate agents in finding homes for sale.

The sub-prime mortgage crisis in 2007 was caused by

Many people believe that location is the most important factor to consider when selecting a home.

If you sell your home without the use of a real estate agent, you should still make use of a

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

The purpose of title insurance is to

As William Quintal conducts an investigation of property value factors, most real estate experts tell him that ____________ most influences the housing values in an area.

Ease of mobility is an advantage of owning a house.

The amount of mortgage a person is eligible for would be increased by

Home improvements may contribute more to the value of the home than the cost of the renovations.

Renting would be most appropriate for people who

Financial guidelines suggest that you should "spend no more than 25 to 30 percent of your take home pay on housing".

The purpose of zoning laws is to

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

Exam 7: The Finances of Housing

The sub-prime mortgage crisis in 2007 was caused by

Many people believe that location is the most important factor to consider when selecting a home.

If you sell your home without the use of a real estate agent, you should still make use of a

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

The purpose of title insurance is to

As William Quintal conducts an investigation of property value factors, most real estate experts tell him that ____________ most influences the housing values in an area.

Ease of mobility is an advantage of owning a house.

The amount of mortgage a person is eligible for would be increased by

Home improvements may contribute more to the value of the home than the cost of the renovations.

Renting would be most appropriate for people who

Financial guidelines suggest that you should "spend no more than 25 to 30 percent of your take home pay on housing".

The purpose of zoning laws is to

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