Question 1

____ is a fixed auto ownership cost.

Accepted Answer

A)  Gasoline 
B)  Installment loan payment 
C)  Auto insurance 
D)  Maintenance 
E)  b and c 
A)  Gasoline 
B)  Installment loan payment 
C)  Auto insurance 
D)  Maintenance 
E)  b and c

Question 2

In which of the following situations would you have to pay additional money when returning a vehicle using an open-end lease?

Accepted Answer

A)  residual value is less than expected 
B)  residual value is more than expected 
C)  mileage limits were exceeded 
D)  a and c 
E)  b and c 
A)  residual value is less than expected 
B)  residual value is more than expected 
C)  mileage limits were exceeded 
D)  a and c 
E)  b and c

Question 3

INSTRUCTIONS: Choose the word or phrase in [ ] which will correctly complete the statement. Select
-Longer term auto loans have a [lower rate but higher payment | higher rate but lower payment]

Accepted Answer

A) for the first item 
B) for the second item 
C) if neither item will correctly complete the 
A) for the first item 
B) for the second item 
C) if neither item will correctly complete the

Question 4

Capitalized cost on an auto lease is similar to the interest rate on a loan.

Accepted Answer

A) True 
 B)False

Question 5

INSTRUCTIONS: Choose the word or phrase in [ ] which will correctly complete the statement. Select
-The [longer | shorter] the period of time you expect to live in a house,the more likely refinancing is a sound financial decision.

Accepted Answer

A) for the first item 
B) for the second item 
C) if neither item will correctly complete the 
A) for the first item 
B) for the second item 
C) if neither item will correctly complete the

Question 6

The market price of a house is $125,000 and the homebuyer will borrow $100,000.Two points will equal $2,000.

Accepted Answer

A) True 
 B)False

Question 7

At the end of your car lease period,you intend to turn in the car,and you will not pay extra at that time based on the residual value of the car.You have ____ lease.

Accepted Answer

A)  a residual 
B)  an open-end 
C)  a purchase option 
D)  a closed-end 
E)  none of these 
A)  a residual 
B)  an open-end 
C)  a purchase option 
D)  a closed-end 
E)  none of these

Question 8

Early termination clauses on an auto lease typically apply to cars that are stolen or totaled in an accident as well as when you just want to return the vehicle before the end of the lease.

Accepted Answer

A) True 
 B)False

Question 9

The seller of the house typically pays the

Accepted Answer

A)  loan application fee. 
B)  real estate agent's commission. 
C)  appraisal fee. 
D)  points. 
E)  title search and insurance. 
A)  loan application fee. 
B)  real estate agent's commission. 
C)  appraisal fee. 
D)  points. 
E)  title search and insurance.

Question 10

The type of mortgage that will most likely need to be refinanced is the ____ mortgage.

Accepted Answer

A)  fixed-rate 
B)  adjustable-rate 
C)  balloon-payment 
D)  graduated-payment 
E)  growing-equity 
A)  fixed-rate 
B)  adjustable-rate 
C)  balloon-payment 
D)  graduated-payment 
E)  growing-equity

Question 11

Homeowners may be allowed to deduct the following on their taxes

Accepted Answer

A)  homeowners insurance 
B)  mortgage interest 
C)  home improvements 
D)  mortgage principal 
A)  homeowners insurance 
B)  mortgage interest 
C)  home improvements 
D)  mortgage principal

Question 12

The job of a mortgage banker is to locate conventional loans for clients.

Accepted Answer

A) True 
 B)False

Question 13

INSTRUCTIONS: Choose the word or phrase in [ ] which will correctly complete the statement. Select
-There is direct ownership of your living space in a [condo | co-op apartment].

Accepted Answer

A) for the first item 
B) for the second item 
C) if neither item will correctly complete the 
A) for the first item 
B) for the second item 
C) if neither item will correctly complete the

Question 14

You can deduct mortgage interest and property taxes on your home to reduce your federal income taxes only if you itemize deductions.

Accepted Answer

A) True 
 B)False

Question 15

The loss of value in a car over time is called

Accepted Answer

A)  maintenance. 
B)  loan payments. 
C)  sales payments. 
D)  commissions. 
E)  depreciation. 
A)  maintenance. 
B)  loan payments. 
C)  sales payments. 
D)  commissions. 
E)  depreciation.

Question 16

The affordability ratios used to qualify applicants for FHA and VA loans are more stringent than those used for conventional loans.

Accepted Answer

A) True 
 B)False

Question 17

To be legally binding,real estate buy-sell agreements must be in writing,but leases may be oral.

Accepted Answer

A) True 
 B)False

Question 18

A FHA loan is insured by the federal government.

Accepted Answer

A) True 
 B)False

Question 19

____ could be deducted on your Federal income taxes.

Accepted Answer

A)  Rent payments 
B)  Mortgage interest 
C)  Homeowner's insurance 
D)  Utility bills 
E)  None of these 
A)  Rent payments 
B)  Mortgage interest 
C)  Homeowner's insurance 
D)  Utility bills 
E)  None of these

Question 20

Variable auto ownership costs are most dependent on

Accepted Answer

A)  driver behavior. 
B)  mileage driven. 
C)  city lived in. 
D)  down payment. 
E)  hours driven. 
A)  driver behavior. 
B)  mileage driven. 
C)  city lived in. 
D)  down payment. 
E)  hours driven.

____ is a fixed auto ownership cost.

In which of the following situations would you have to pay additional money when returning a vehicle using an open-end lease?

INSTRUCTIONS: Choose the word or phrase in [ ] which will correctly complete the statement. Select -Longer term auto loans have a [lower rate but higher payment | higher rate but lower payment]

Capitalized cost on an auto lease is similar to the interest rate on a loan.

INSTRUCTIONS: Choose the word or phrase in [ ] which will correctly complete the statement. Select -The [longer | shorter] the period of time you expect to live in a house,the more likely refinancing is a sound financial decision.

The market price of a house is $125,000 and the homebuyer will borrow $100,000.Two points will equal $2,000.

At the end of your car lease period,you intend to turn in the car,and you will not pay extra at that time based on the residual value of the car.You have ____ lease.

Early termination clauses on an auto lease typically apply to cars that are stolen or totaled in an accident as well as when you just want to return the vehicle before the end of the lease.

The seller of the house typically pays the

The type of mortgage that will most likely need to be refinanced is the ____ mortgage.

Homeowners may be allowed to deduct the following on their taxes

The job of a mortgage banker is to locate conventional loans for clients.

INSTRUCTIONS: Choose the word or phrase in [ ] which will correctly complete the statement. Select -There is direct ownership of your living space in a [condo | co-op apartment].

You can deduct mortgage interest and property taxes on your home to reduce your federal income taxes only if you itemize deductions.

The loss of value in a car over time is called

The affordability ratios used to qualify applicants for FHA and VA loans are more stringent than those used for conventional loans.

To be legally binding,real estate buy-sell agreements must be in writing,but leases may be oral.

A FHA loan is insured by the federal government.

____ could be deducted on your Federal income taxes.

Variable auto ownership costs are most dependent on

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

Planning for Retirement

Preserving Your Estate

Filters

Exam 5: Making Automobile and Housing Decisions

____ is a fixed auto ownership cost.

In which of the following situations would you have to pay additional money when returning a vehicle using an open-end lease?

INSTRUCTIONS: Choose the word or phrase in [ ] which will correctly complete the statement. Select -Longer term auto loans have a [lower rate but higher payment | higher rate but lower payment]

Capitalized cost on an auto lease is similar to the interest rate on a loan.

INSTRUCTIONS: Choose the word or phrase in [ ] which will correctly complete the statement. Select -The [longer | shorter] the period of time you expect to live in a house,the more likely refinancing is a sound financial decision.

The market price of a house is $125,000 and the homebuyer will borrow $100,000.Two points will equal $2,000.

At the end of your car lease period,you intend to turn in the car,and you will not pay extra at that time based on the residual value of the car.You have ____ lease.

Early termination clauses on an auto lease typically apply to cars that are stolen or totaled in an accident as well as when you just want to return the vehicle before the end of the lease.

The seller of the house typically pays the

The type of mortgage that will most likely need to be refinanced is the ____ mortgage.

Homeowners may be allowed to deduct the following on their taxes

The job of a mortgage banker is to locate conventional loans for clients.

INSTRUCTIONS: Choose the word or phrase in [ ] which will correctly complete the statement. Select -There is direct ownership of your living space in a [condo | co-op apartment].

You can deduct mortgage interest and property taxes on your home to reduce your federal income taxes only if you itemize deductions.

The loss of value in a car over time is called

The affordability ratios used to qualify applicants for FHA and VA loans are more stringent than those used for conventional loans.

To be legally binding,real estate buy-sell agreements must be in writing,but leases may be oral.

A FHA loan is insured by the federal government.

____ could be deducted on your Federal income taxes.

Variable auto ownership costs are most dependent on

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

Planning for Retirement

Preserving Your Estate

Filters