Question 1

What is the maximum amount a first-time home buyer who is not 59   years old can withdraw from an IRA without penalty?

Accepted Answer

A)  $25,000 
B)  $15,000 
C)  $10,000 
D)  $ 5,000 
E)  $ 2,000 
A)  $25,000 
B)  $15,000 
C)  $10,000 
D)  $ 5,000 
E)  $ 2,000

Question 2

The "rent ratio" has fallen as home prices have fallen.

Accepted Answer

A) True 
 B)False

Question 3

INSTRUCTIONS: Choose the word or phrase in [ ] which will correctly complete the statement. Select
-You have a choice of a 25-year or 30-year mortgage.Your monthly payments will be [more | less] with the 30-year loan.

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

INSTRUCTIONS: Choose the word or phrase in [ ] which will correctly complete the statement. Select
-If your lender charges 1 1/2 mortgage points on a house selling for $100,000 on which there is to be a $90,000 loan,the points will cost you [$1,350 | $1,500].

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 5

Earnest money is the sum of money the home buyer deposits with the

Accepted Answer

A)  realtor to view homes. 
B)  realtor for finding the desired home. 
C)  lender to originate the loan. 
D)  seller to indicate intent of purchase. 
E)  lender to guarantee the purchase. 
A)  realtor to view homes. 
B)  realtor for finding the desired home. 
C)  lender to originate the loan. 
D)  seller to indicate intent of purchase. 
E)  lender to guarantee the purchase.

Question 6

INSTRUCTIONS: Choose the word or phrase in [ ] which will correctly complete the statement. Select
-The biggest fixed cost of owning a car is [the loan payment | insurance].

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 7

Fixed automobile costs increase as the number of miles driven increase.

Accepted Answer

A) True 
 B)False

Question 8

The greatest fixed cost involved with owning an automobile is usually the auto insurance payments.

Accepted Answer

A) True 
 B)False

Question 9

An adjustable rate mortgage with a baseline rate of 5%,a margin of 2%,and an annual cap of 1% would have an initial mortgage rate of 7%.

Accepted Answer

A) True 
 B)False

Question 10

An automobile is a personal use asset for most buyers.

Accepted Answer

A) True 
 B)False

Question 11

INSTRUCTIONS: Choose the word or phrase in [ ] which will correctly complete the statement. Select
-You made an $900 mortgage payment.The interest on the mortgage for this month was $850.You have just experienced [negative | positive] amortization.

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 12

According to federal law,private mortgage insurance on most loans currently made ends automatically once the mortgage is paid down to 78% of the original value of the house.

Accepted Answer

A) True 
 B)False

Question 13

The Veterans Administration guarantees mortgage loans given to qualified veterans.

Accepted Answer

A) True 
 B)False

Question 14

INSTRUCTIONS: Choose the word or phrase in [ ] which will correctly complete the statement. Select
-The Real Estate Settlement Procedures Act [limits the amount of closing costs a lender can charge | requires advance disclosure of closing costs].

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 15

The interest rates and monthly mortgage payments will not change over the life of your mortgage; you have a(n)

Accepted Answer

A)  reverse-annuity mortgage. 
B)  fixed-rate mortgage. 
C)  adjustable rate mortgage. 
D)  rollover mortgage. 
E)  graduated-payment mortgage. 
A)  reverse-annuity mortgage. 
B)  fixed-rate mortgage. 
C)  adjustable rate mortgage. 
D)  rollover mortgage. 
E)  graduated-payment mortgage.

Question 16

A real estate sales contract will include

Accepted Answer

A)  the amount you are willing to pay for the property. 
B)  the terms of the mortgage loan. 
C)  deed restrictions. 
D)  market value of the property. 
E)  none of the above. 
A)  the amount you are willing to pay for the property. 
B)  the terms of the mortgage loan. 
C)  deed restrictions. 
D)  market value of the property. 
E)  none of the above.

Question 17

INSTRUCTIONS: Choose the word or phrase in [ ] which will correctly complete the statement. Select
-With a [closed-end | open-end] lease,you turn in the car at the end of the term and have no additional financial obligation as a result of the residual value.

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 18

A PITI payment is composed of principal,interest,real estate taxes,and insurance.

Accepted Answer

A) True 
 B)False

Question 19

INSTRUCTIONS: Choose the word or phrase in [ ] which will correctly complete the statement. Select
-[Lessor | Lessee] is another term for landlord.

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 20

Most new car warranties cover a minimum of the first 72,000 miles or 6 years of ownership.

Accepted Answer

A) True 
 B)False

What is the maximum amount a first-time home buyer who is not 59 years old can withdraw from an IRA without penalty?

The "rent ratio" has fallen as home prices have fallen.

INSTRUCTIONS: Choose the word or phrase in [ ] which will correctly complete the statement. Select -You have a choice of a 25-year or 30-year mortgage.Your monthly payments will be [more | less] with the 30-year loan.

INSTRUCTIONS: Choose the word or phrase in [ ] which will correctly complete the statement. Select -If your lender charges 1 1/2 mortgage points on a house selling for $100,000 on which there is to be a $90,000 loan,the points will cost you [$1,350 | $1,500].

Earnest money is the sum of money the home buyer deposits with the

INSTRUCTIONS: Choose the word or phrase in [ ] which will correctly complete the statement. Select -The biggest fixed cost of owning a car is [the loan payment | insurance].

Fixed automobile costs increase as the number of miles driven increase.

The greatest fixed cost involved with owning an automobile is usually the auto insurance payments.

An adjustable rate mortgage with a baseline rate of 5%,a margin of 2%,and an annual cap of 1% would have an initial mortgage rate of 7%.

An automobile is a personal use asset for most buyers.

INSTRUCTIONS: Choose the word or phrase in [ ] which will correctly complete the statement. Select -You made an $900 mortgage payment.The interest on the mortgage for this month was $850.You have just experienced [negative | positive] amortization.

According to federal law,private mortgage insurance on most loans currently made ends automatically once the mortgage is paid down to 78% of the original value of the house.

The Veterans Administration guarantees mortgage loans given to qualified veterans.

INSTRUCTIONS: Choose the word or phrase in [ ] which will correctly complete the statement. Select -The Real Estate Settlement Procedures Act [limits the amount of closing costs a lender can charge | requires advance disclosure of closing costs].

The interest rates and monthly mortgage payments will not change over the life of your mortgage; you have a(n)

A real estate sales contract will include

INSTRUCTIONS: Choose the word or phrase in [ ] which will correctly complete the statement. Select -With a [closed-end | open-end] lease,you turn in the car at the end of the term and have no additional financial obligation as a result of the residual value.

A PITI payment is composed of principal,interest,real estate taxes,and insurance.

INSTRUCTIONS: Choose the word or phrase in [ ] which will correctly complete the statement. Select -[Lessor | Lessee] is another term for landlord.

Most new car warranties cover a minimum of the first 72,000 miles or 6 years of ownership.

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

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Exam 5: Making Automobile and Housing Decisions

What is the maximum amount a first-time home buyer who is not 59 years old can withdraw from an IRA without penalty?

The "rent ratio" has fallen as home prices have fallen.

INSTRUCTIONS: Choose the word or phrase in [ ] which will correctly complete the statement. Select -You have a choice of a 25-year or 30-year mortgage.Your monthly payments will be [more | less] with the 30-year loan.

INSTRUCTIONS: Choose the word or phrase in [ ] which will correctly complete the statement. Select -If your lender charges 1 1/2 mortgage points on a house selling for $100,000 on which there is to be a $90,000 loan,the points will cost you [$1,350 | $1,500].

Earnest money is the sum of money the home buyer deposits with the

INSTRUCTIONS: Choose the word or phrase in [ ] which will correctly complete the statement. Select -The biggest fixed cost of owning a car is [the loan payment | insurance].

Fixed automobile costs increase as the number of miles driven increase.

The greatest fixed cost involved with owning an automobile is usually the auto insurance payments.

An adjustable rate mortgage with a baseline rate of 5%,a margin of 2%,and an annual cap of 1% would have an initial mortgage rate of 7%.

An automobile is a personal use asset for most buyers.

INSTRUCTIONS: Choose the word or phrase in [ ] which will correctly complete the statement. Select -You made an $900 mortgage payment.The interest on the mortgage for this month was $850.You have just experienced [negative | positive] amortization.

According to federal law,private mortgage insurance on most loans currently made ends automatically once the mortgage is paid down to 78% of the original value of the house.

The Veterans Administration guarantees mortgage loans given to qualified veterans.

INSTRUCTIONS: Choose the word or phrase in [ ] which will correctly complete the statement. Select -The Real Estate Settlement Procedures Act [limits the amount of closing costs a lender can charge | requires advance disclosure of closing costs].

The interest rates and monthly mortgage payments will not change over the life of your mortgage; you have a(n)

A real estate sales contract will include

INSTRUCTIONS: Choose the word or phrase in [ ] which will correctly complete the statement. Select -With a [closed-end | open-end] lease,you turn in the car at the end of the term and have no additional financial obligation as a result of the residual value.

A PITI payment is composed of principal,interest,real estate taxes,and insurance.

INSTRUCTIONS: Choose the word or phrase in [ ] which will correctly complete the statement. Select -[Lessor | Lessee] is another term for landlord.

Most new car warranties cover a minimum of the first 72,000 miles or 6 years of ownership.

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