Question 1

A loan-to-value ratio of 80 percent would require a buyer to make a 20% down payment.

Accepted Answer

A) True 
 B)False  True

Question 2

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

Accepted Answer

A) True 
 B)False  True

Question 3

If 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. B

Question 4

The first choice in housing in the United States is:

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 5

The financing rate on the car you are leasing is called the:

Accepted Answer

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

Question 6

Which of the following is a type of down payment on the car you are leasing?

Accepted Answer

A)  Money factor 
B)  Capitalized cost 
C)  Residual value 
D)  Purchase option 
E)  Capitalized cost reduction 
A)  Money factor 
B)  Capitalized cost 
C)  Residual value 
D)  Purchase option 
E)  Capitalized cost reduction

Question 7

A real estate sales contract contains the terms and provisions which establish the sale's transaction.

Accepted Answer

A) True 
 B)False

Question 8

The affordability ratios used to qualify applicants for Federal Housing Administration and Veteran Allowance loans are more stringent than those used for conventional loans.

Accepted Answer

A) True 
 B)False

Question 9

Which of the following is a reason for people to lease vehicles?

Accepted Answer

A)  Leasing is generally less expensive than buying. 
B)  Monthly payments for leases are generally less expensive than loan payments. 
C)  One can afford a more expensive car with the same monthly payment by leasing rather than buying. 
D)  b and c only 
E)  a,b,and c 
A)  Leasing is generally less expensive than buying. 
B)  Monthly payments for leases are generally less expensive than loan payments. 
C)  One can afford a more expensive car with the same monthly payment by leasing rather than buying. 
D)  b and c only 
E)  a,b,and c

Question 10

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.
-For most homeowners,the most important financial reason for owning a home is for the [inflation hedge | tax shelter].

Accepted Answer

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

Question 11

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 most popular type of lease is the [closed-end | open-end] lease.

Accepted Answer

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

Question 12

Commercial banks are an important source of both mortgage loans and interim construction loans.

Accepted Answer

A) True 
 B)False

Question 13

A buydown refers to a:

Accepted Answer

A)  mortgage that starts with unusually low payments that rise over several years to a fixed payment. 
B)  financing made available by a builder or seller to a potential new-home buyer at well below market interest rates,often only for a short period. 
C)  fixed-rate mortgage with payments that increase over a specific period. 
D)  mortgage that requires the borrower to pay only interest; typically used to finance the purchase of more expensive properties. 
E)  loan on which payments which equal half the regular annual interest amount are made every six months. 
A)  mortgage that starts with unusually low payments that rise over several years to a fixed payment. 
B)  financing made available by a builder or seller to a potential new-home buyer at well below market interest rates,often only for a short period. 
C)  fixed-rate mortgage with payments that increase over a specific period. 
D)  mortgage that requires the borrower to pay only interest; typically used to finance the purchase of more expensive properties. 
E)  loan on which payments which equal half the regular annual interest amount are made every six months.

Question 14

When you receive title to an individual unit and joint ownership of any common areas and facilities,you have purchased a:

Accepted Answer

A)  single family home. 
B)  cooperative. 
C)  condominium. 
D)  row house. 
E)  mobile home. 
A)  single family home. 
B)  cooperative. 
C)  condominium. 
D)  row house. 
E)  mobile home.

Question 15

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 16

The majority of each monthly payment at the beginning of the loan goes to pay:

Accepted Answer

A)  principal. 
B)  interest. 
C)  real estate taxes. 
D)  homeowner's insurance. 
E)  private mortgage insurance. 
A)  principal. 
B)  interest. 
C)  real estate taxes. 
D)  homeowner's insurance. 
E)  private mortgage insurance.

Question 17

Which of the following is tax deductible if one itemizes deductions?

Accepted Answer

A)  Principal,interest,real estate taxes,and insurance 
B)  Principal,interest,and real estate taxes 
C)  Principal and interest 
D)  Interest,real estate taxes,and insurance 
E)  Interest,PMI,and real estate taxes 
A)  Principal,interest,real estate taxes,and insurance 
B)  Principal,interest,and real estate taxes 
C)  Principal and interest 
D)  Interest,real estate taxes,and insurance 
E)  Interest,PMI,and real estate taxes

Question 18

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 19

The federal income tax advantage gained from home ownership will depend on the amount of deductible interest and property taxes and your total income.

Accepted Answer

A) True 
 B)False

Question 20

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

Accepted Answer

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

A loan-to-value ratio of 80 percent would require a buyer to make a 20% down payment.

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

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

The first choice in housing in the United States is:

The financing rate on the car you are leasing is called the:

Which of the following is a type of down payment on the car you are leasing?

A real estate sales contract contains the terms and provisions which establish the sale's transaction.

The affordability ratios used to qualify applicants for Federal Housing Administration and Veteran Allowance loans are more stringent than those used for conventional loans.

Which of the following is a reason for people to lease vehicles?

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 most popular type of lease is the [closed-end | open-end] lease.

Commercial banks are an important source of both mortgage loans and interim construction loans.

A buydown refers to a:

When you receive title to an individual unit and joint ownership of any common areas and facilities,you have purchased a:

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.

The majority of each monthly payment at the beginning of the loan goes to pay:

Which of the following is tax deductible if one itemizes deductions?

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 federal income tax advantage gained from home ownership will depend on the amount of deductible interest and property taxes and your total income.

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

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

A loan-to-value ratio of 80 percent would require a buyer to make a 20% down payment.

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

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

The first choice in housing in the United States is:

The financing rate on the car you are leasing is called the:

Which of the following is a type of down payment on the car you are leasing?

A real estate sales contract contains the terms and provisions which establish the sale's transaction.

The affordability ratios used to qualify applicants for Federal Housing Administration and Veteran Allowance loans are more stringent than those used for conventional loans.

Which of the following is a reason for people to lease vehicles?

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 most popular type of lease is the [closed-end | open-end] lease.

Commercial banks are an important source of both mortgage loans and interim construction loans.

A buydown refers to a:

When you receive title to an individual unit and joint ownership of any common areas and facilities,you have purchased a:

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.

The majority of each monthly payment at the beginning of the loan goes to pay:

Which of the following is tax deductible if one itemizes deductions?

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 federal income tax advantage gained from home ownership will depend on the amount of deductible interest and property taxes and your total income.

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

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