Question 1

The first choice in housing in the United States is a

Accepted Answer

A) single-family home. 
B) condominium. 
C) cooperative apartment. 
D) manufactured home. 
E) rental apartment. 
A) single-family home. 
B) condominium. 
C) cooperative apartment. 
D) manufactured home. 
E) rental apartment.

Question 2

____ is a reason for preferring to rent rather than to buy.

Accepted Answer

A) Flexibility 
B) No maintenance worries 
C) Lower monthly cash flows 
D) Down payment money better used elsewhere 
E) All of these 
A) Flexibility 
B) No maintenance worries 
C) Lower monthly cash flows 
D) Down payment money better used elsewhere 
E) All of these

Question 3

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 major variable cost of owning a car is [the loan payment | gasoline].

Accepted Answer

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

Question 4

The interest rates and monthly mortgage payments will not change over the life of your mortgage if 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 5

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

Accepted Answer

A) True 
 B)False

Question 6

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.
-Most lenders do not want your monthly installment loan payments to exceed [36 | 50] percent of your monthly income.

Accepted Answer

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

Question 7

Less rapid depreciation is one advantage of buying a used car rather than a new car.

Accepted Answer

A) True 
 B)False

Question 8

Anna purchased a vehicle six years ago for $25,000.She recently sold it for $5,000.Over the years,she paid a total of $5,800 on auto insurance,$4,800 on gas and maintenance,and $2,500 in interest.What was her depreciation cost on this vehicle?

Accepted Answer

A) $5,000 
B) $10,800 
C) $15,000 
D) $20,000 
E) $25,000 
A) $5,000 
B) $10,800 
C) $15,000 
D) $20,000 
E) $25,000

Question 9

The down payment on the car you are leasing is called the

Accepted Answer

A) money factor. 
B) capitalized cost. 
C) residual value. 
D) purchase option. 
E) capital cost reduction. 
A) money factor. 
B) capitalized cost. 
C) residual value. 
D) purchase option. 
E) capital cost reduction.

Question 10

In a co-op,the buyer receives title to a unit and joint ownership of the common areas.

Accepted Answer

A) True 
 B)False

Question 11

Lowballing is a sales technique where the salesperson quotes a low price for a car to get you to make an offer,and negotiates the price upward prior to signing the sales agreement.

Accepted Answer

A) True 
 B)False

Question 12

The price of the car you are leasing is called the

Accepted Answer

A) money factor. 
B) capitalized cost. 
C) residual value. 
D) purchase option. 
E) capital cost reduction. 
A) money factor. 
B) capitalized cost. 
C) residual value. 
D) purchase option. 
E) capital cost reduction.

Question 13

Depreciation is not an important consideration since it is not a recurring out-of-pocket cost.

Accepted Answer

A) True 
 B)False

Question 14

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

Accepted Answer

A) True 
 B)False

Question 15

Most new car warranties cover a minimum of the first 36,000 miles or 3 years of ownership,whichever comes last.

Accepted Answer

A) True 
 B)False

Question 16

The cost of a title search and title insurance are typically part of the closing costs on a housing transaction.

Accepted Answer

A) True 
 B)False

Question 17

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.
-Seeking mortgage prequalification [is | is not] recommended when you begin your house search.

Accepted Answer

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

Question 18

What is the maximum amount a first-time home buyer who is not 59½ 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 19

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

Accepted Answer

A) True 
 B)False

Question 20

When buying a used car,it is very important to have it checked by a reputable mechanic.

Accepted Answer

A) True 
 B)False

The first choice in housing in the United States is a

____ is a reason for preferring to rent rather than to buy.

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 major variable cost of owning a car is [the loan payment | gasoline].

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

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

Less rapid depreciation is one advantage of buying a used car rather than a new car.

Anna purchased a vehicle six years ago for $25,000.She recently sold it for $5,000.Over the years,she paid a total of $5,800 on auto insurance,$4,800 on gas and maintenance,and $2,500 in interest.What was her depreciation cost on this vehicle?

The down payment on the car you are leasing is called the

In a co-op,the buyer receives title to a unit and joint ownership of the common areas.

Lowballing is a sales technique where the salesperson quotes a low price for a car to get you to make an offer,and negotiates the price upward prior to signing the sales agreement.

The price of the car you are leasing is called the

Depreciation is not an important consideration since it is not a recurring out-of-pocket cost.

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

Most new car warranties cover a minimum of the first 36,000 miles or 3 years of ownership,whichever comes last.

The cost of a title search and title insurance are typically part of the closing costs on a housing transaction.

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. -Seeking mortgage prequalification [is | is not] recommended when you begin your house search.

What is the maximum amount a first-time home buyer who is not 59½ years old can withdraw from an IRA without penalty?

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

When buying a used car,it is very important to have it checked by a reputable mechanic.

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

The first choice in housing in the United States is a

____ is a reason for preferring to rent rather than to buy.

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 major variable cost of owning a car is [the loan payment | gasoline].

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

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

Less rapid depreciation is one advantage of buying a used car rather than a new car.

Anna purchased a vehicle six years ago for $25,000.She recently sold it for $5,000.Over the years,she paid a total of $5,800 on auto insurance,$4,800 on gas and maintenance,and $2,500 in interest.What was her depreciation cost on this vehicle?

The down payment on the car you are leasing is called the

In a co-op,the buyer receives title to a unit and joint ownership of the common areas.

Lowballing is a sales technique where the salesperson quotes a low price for a car to get you to make an offer,and negotiates the price upward prior to signing the sales agreement.

The price of the car you are leasing is called the

Depreciation is not an important consideration since it is not a recurring out-of-pocket cost.

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

Most new car warranties cover a minimum of the first 36,000 miles or 3 years of ownership,whichever comes last.

The cost of a title search and title insurance are typically part of the closing costs on a housing transaction.

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. -Seeking mortgage prequalification [is | is not] recommended when you begin your house search.

What is the maximum amount a first-time home buyer who is not 59½ years old can withdraw from an IRA without penalty?

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

When buying a used car,it is very important to have it checked by a reputable mechanic.

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