Question 1

Generally,renting would be preferred to buying when:

Accepted Answer

A)  you have no money to make a down payment. 
B)  you know your job will be temporary. 
C)  you have just gone through a divorce. 
D)  all of these 
E)  none of these 
A)  you have no money to make a down payment. 
B)  you know your job will be temporary. 
C)  you have just gone through a divorce. 
D)  all of these 
E)  none of these

Question 2

Lowballing is a sales technique where the salesperson quotes a low price for a car then tries to get you to purchase a different,more expensive vehicle.

Accepted Answer

A) True 
 B)False

Question 3

Negative amortization is possible with an adjustable-rate mortgage.

Accepted Answer

A) True 
 B)False

Question 4

A loan-to-value ratio of 90 percent would require a buyer to make a 90% down payment.

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.
-A condominium/townhome buyer shares joint ownership of [common areas | his living space].

Accepted Answer

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

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.
-[Lessor | Lessee] is another term for landlord.

Accepted Answer

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

Question 7

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 term condominium/townhome refers to a type of [architecture | ownership].

Accepted Answer

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

Question 8

The money factor on an auto lease is similar to the interest rate on a loan.

Accepted Answer

A) True 
 B)False

Question 9

A fee charged by lenders as a condition of a mortgage loan that effectively raises the interest rate is called:

Accepted Answer

A)  mortgage points. 
B)  a down payment. 
C)  a commission. 
D)  an add-on charge. 
E)  loan fee. 
A)  mortgage points. 
B)  a down payment. 
C)  a commission. 
D)  an add-on charge. 
E)  loan fee.

Question 10

Barb and Bob want to purchase a new home but don't know how much mortgage they can qualify for.The lender requires total installment loan payments not exceed 35% of gross monthly income.Based on Barb and Bob's financial data below,what is the maximum monthly mortgage payment for which they can qualify?

Accepted Answer

A)  $1,400 
B)  $1,208 
C)  $1,050 
D)  $ 850 
E)  $ 500 
A)  $1,400 
B)  $1,208 
C)  $1,050 
D)  $ 850 
E)  $ 500

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.
-As a homeowner,you can deduct the mortgage interest and [property taxes | property insurance] if you itemize on your federal taxes.

Accepted Answer

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

Question 12

_____ and _____ are often paid as part of one's house payment and held in an escrow account.

Accepted Answer

A)  Closing costs; interest 
B)  Insurance; real estate taxes 
C)  Principal; interest 
D)  Insurance; utilities 
E)  Utilities; real estate taxes 
A)  Closing costs; interest 
B)  Insurance; real estate taxes 
C)  Principal; interest 
D)  Insurance; utilities 
E)  Utilities; real estate taxes

Question 13

The largest single investment you will undertake in your lifetime will probably be the purchase of a house.

Accepted Answer

A) True 
 B)False

Question 14

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 earnest money deposit is a payment to the [real estate agent for his services | seller to show good faith when making an offer to buy].

Accepted Answer

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

Question 15

One can arrange auto loans through:

Accepted Answer

A)  auto dealers. 
B)  banks. 
C)  credit unions. 
D)  consumer finance companies. 
E)  all of the above 
A)  auto dealers. 
B)  banks. 
C)  credit unions. 
D)  consumer finance companies. 
E)  all of the above

Question 16

Points can be deducted from federal income taxes in the year paid when they are used to:

Accepted Answer

A)  finance a first home. 
B)  finance a second home. 
C)  refinance a first home. 
D)  refinance a second home. 
E)  a and c only 
A)  finance a first home. 
B)  finance a second home. 
C)  refinance a first home. 
D)  refinance a second home. 
E)  a and c only

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 preapproval [is | is not] recommended when you begin your house search.

Accepted Answer

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

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.
-A [loan-to-value ratio | affordability ratio] specifies the maximum percentage of the value of a property that the lender is willing to loan.

Accepted Answer

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

Question 19

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.
-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

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

Question 20

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

Generally,renting would be preferred to buying when:

Lowballing is a sales technique where the salesperson quotes a low price for a car then tries to get you to purchase a different,more expensive vehicle.

Negative amortization is possible with an adjustable-rate mortgage.

A loan-to-value ratio of 90 percent would require a buyer to make a 90% down 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 condominium/townhome buyer shares joint ownership of [common areas | his living space].

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. -[Lessor | Lessee] is another term for landlord.

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 term condominium/townhome refers to a type of [architecture | ownership].

The money factor on an auto lease is similar to the interest rate on a loan.

A fee charged by lenders as a condition of a mortgage loan that effectively raises the interest rate is called:

_ and _ are often paid as part of one's house payment and held in an escrow account.

The largest single investment you will undertake in your lifetime will probably be the purchase of a house.

One can arrange auto loans through:

Points can be deducted from federal income taxes in the year paid when they are used to:

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 preapproval [is | is not] recommended when you begin your house search.

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

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

Generally,renting would be preferred to buying when:

Lowballing is a sales technique where the salesperson quotes a low price for a car then tries to get you to purchase a different,more expensive vehicle.

Negative amortization is possible with an adjustable-rate mortgage.

A loan-to-value ratio of 90 percent would require a buyer to make a 90% down 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 condominium/townhome buyer shares joint ownership of [common areas | his living space].

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. -[Lessor | Lessee] is another term for landlord.

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 term condominium/townhome refers to a type of [architecture | ownership].

The money factor on an auto lease is similar to the interest rate on a loan.

A fee charged by lenders as a condition of a mortgage loan that effectively raises the interest rate is called:

_____ and _____ are often paid as part of one's house payment and held in an escrow account.

The largest single investment you will undertake in your lifetime will probably be the purchase of a house.

One can arrange auto loans through:

Points can be deducted from federal income taxes in the year paid when they are used to:

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 preapproval [is | is not] recommended when you begin your house search.

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

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

_ and _ are often paid as part of one's house payment and held in an escrow account.