Question 1

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

Accepted Answer

A) Residual value is less than expected. 
B) Residual value is more than expected. 
C) Mileage limits were exceeded. 
D) Both a and c apply. 
E) Both b and c apply. 
A) Residual value is less than expected. 
B) Residual value is more than expected. 
C) Mileage limits were exceeded. 
D) Both a and c apply. 
E) Both b and c apply.

Question 2

You should secure the trade-in value of your current automobile before you start negotiating the final price on the car you are purchasing.

Accepted Answer

A) True 
 B)False

Question 3

Reasons why auto leasing is so popular include all of the following except

Accepted Answer

A) lower monthly payments 
B) lower down payment 
C) lower total cost 
D) getting more expensive car for the same monthly payment 
E) rising new car prices 
A) lower monthly payments 
B) lower down payment 
C) lower total cost 
D) getting more expensive car for the same monthly payment 
E) rising new car prices

Question 4

A significant legal difference between a cooperative apartment and a condominium is that the condominium owner normally holds a title to the property.

Accepted Answer

A) True 
 B)False

Question 5

Choose the word or phrase in [ ] which will correctly complete the statement. Select A for the first item, B for the second item, and C if neither item will correctly complete the statement.
-The total amount of interest you would have to pay would be less with a [25 | 20] year mortgage.

Accepted Answer

The answer of Choose the word or phrase in [...

Question 6

Which of the following is true regarding cooperative apartments?

Accepted Answer

A) They are essentially the same as condominiums. 
B) It may be more difficult to obtain a home mortgage for them. 
C) They tend to be more expensive than single-family dwellings. 
D) They produce more tax advantages than other types of homes. 
E) All of the above are true. 
A) They are essentially the same as condominiums. 
B) It may be more difficult to obtain a home mortgage for them. 
C) They tend to be more expensive than single-family dwellings. 
D) They produce more tax advantages than other types of homes. 
E) All of the above are true.

Question 7

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 8

Choose the word or phrase in [ ] which will correctly complete the statement. Select A for the first item, B for the second item, and C if neither item will correctly complete the statement.
-Longer term auto loans have a [lower rate but higher payment | higher rate but lower payment].

Accepted Answer

The answer of Choose the word or phrase in [...

Question 9

Choose the word or phrase in [ ] which will correctly complete the statement. Select A for the first item, B for the second item, and C if neither item will correctly complete the statement.
-A convertible ARM will have a [higher | lower] interest rate than a traditional ARM.

Accepted Answer

The answer of Choose the word or phrase in [...

Question 10

Other factors being equal,fixed-rate mortgages will have higher interest rates initially than adjustable-rate mortgages.

Accepted Answer

A) True 
 B)False

Question 11

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

Accepted Answer

A) True 
 B)False

Question 12

Most lenders do not want mortgage payments plus other installment loan payments to exceed ____ percent of your monthly gross income.

Accepted Answer

A) 10-15 
B) 15-18 
C) 25-30 
D) 30-33 
E) 33-38 
A) 10-15 
B) 15-18 
C) 25-30 
D) 30-33 
E) 33-38

Question 13

____ is(are)an up-front,one-time cost of home ownership.

Accepted Answer

A) The down payment 
B) Closing costs 
C) Property taxes 
D) Insurance 
E) Both a and b 
A) The down payment 
B) Closing costs 
C) Property taxes 
D) Insurance 
E) Both a and b

Question 14

A signed sales contract binds you to purchase the car at the price stated in the contract.

Accepted Answer

A) True 
 B)False

Question 15

Choose the word or phrase in [ ] which will correctly complete the statement. Select A for the first item, B for the second item, and C if neither item will correctly complete the statement.
-Using an FHA mortgage to finance your home would require a [lower | higher] down payment than a conventional loan.

Accepted Answer

The answer of Choose the word or phrase in [...

Question 16

Choose the word or phrase in [ ] which will correctly complete the statement. Select A for the first item, B for the second item, and C if neither item will correctly complete the statement.
-If you qualify,you might be able to buy a home with no down payment with [an FHA | a VA] loan.

Accepted Answer

The answer of Choose the word or phrase in [...

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

Choose the word or phrase in [ ] which will correctly complete the statement. Select A for the first item, B for the second item, and C if neither item will correctly complete the statement.
-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

The answer of Choose the word or phrase in [...

Question 19

The greatest fixed cost involved with owning an automobile is usually the monthly loan payments.

Accepted Answer

A) True 
 B)False

Question 20

Most lenders do not want mortgage payments to exceed ____ percent of your monthly gross income.

Accepted Answer

A) 10-15 
B) 15-18 
C) 25-30 
D) 30-33 
E) 33-38 
A) 10-15 
B) 15-18 
C) 25-30 
D) 30-33 
E) 33-38

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

You should secure the trade-in value of your current automobile before you start negotiating the final price on the car you are purchasing.

Reasons why auto leasing is so popular include all of the following except

A significant legal difference between a cooperative apartment and a condominium is that the condominium owner normally holds a title to the property.

Choose the word or phrase in [ ] which will correctly complete the statement. Select A for the first item, B for the second item, and C if neither item will correctly complete the statement. -The total amount of interest you would have to pay would be less with a [25 | 20] year mortgage.

Which of the following is true regarding cooperative apartments?

The seller of the house typically pays the

Choose the word or phrase in [ ] which will correctly complete the statement. Select A for the first item, B for the second item, and C if neither item will correctly complete the statement. -Longer term auto loans have a [lower rate but higher payment | higher rate but lower payment].

Choose the word or phrase in [ ] which will correctly complete the statement. Select A for the first item, B for the second item, and C if neither item will correctly complete the statement. -A convertible ARM will have a [higher | lower] interest rate than a traditional ARM.

Other factors being equal,fixed-rate mortgages will have higher interest rates initially than adjustable-rate mortgages.

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

Most lenders do not want mortgage payments plus other installment loan payments to exceed ____ percent of your monthly gross income.

____ is(are)an up-front,one-time cost of home ownership.

A signed sales contract binds you to purchase the car at the price stated in the contract.

Choose the word or phrase in [ ] which will correctly complete the statement. Select A for the first item, B for the second item, and C if neither item will correctly complete the statement. -If you qualify,you might be able to buy a home with no down payment with [an FHA | a VA] loan.

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

The greatest fixed cost involved with owning an automobile is usually the monthly loan payments.

Most lenders do not want mortgage payments to exceed ____ percent of your monthly gross income.

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

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

You should secure the trade-in value of your current automobile before you start negotiating the final price on the car you are purchasing.

Reasons why auto leasing is so popular include all of the following except

A significant legal difference between a cooperative apartment and a condominium is that the condominium owner normally holds a title to the property.

Choose the word or phrase in [ ] which will correctly complete the statement. Select A for the first item, B for the second item, and C if neither item will correctly complete the statement. -The total amount of interest you would have to pay would be less with a [25 | 20] year mortgage.

Which of the following is true regarding cooperative apartments?

The seller of the house typically pays the

Choose the word or phrase in [ ] which will correctly complete the statement. Select A for the first item, B for the second item, and C if neither item will correctly complete the statement. -Longer term auto loans have a [lower rate but higher payment | higher rate but lower payment].

Choose the word or phrase in [ ] which will correctly complete the statement. Select A for the first item, B for the second item, and C if neither item will correctly complete the statement. -A convertible ARM will have a [higher | lower] interest rate than a traditional ARM.

Other factors being equal,fixed-rate mortgages will have higher interest rates initially than adjustable-rate mortgages.

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

Most lenders do not want mortgage payments plus other installment loan payments to exceed ____ percent of your monthly gross income.

____ is(are)an up-front,one-time cost of home ownership.

A signed sales contract binds you to purchase the car at the price stated in the contract.

Choose the word or phrase in [ ] which will correctly complete the statement. Select A for the first item, B for the second item, and C if neither item will correctly complete the statement. -If you qualify,you might be able to buy a home with no down payment with [an FHA | a VA] loan.

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

The greatest fixed cost involved with owning an automobile is usually the monthly loan payments.

Most lenders do not want mortgage payments to exceed ____ percent of your monthly gross income.

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