Question 1

Earnest money is the sum of money the home buyer pledges 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 2

_____ is a reason for owning your own home.

Accepted Answer

A)  Pride of ownership 
B)  A feeling of permanence 
C)  A sense of stability 
D)  A tax shelter 
E)  All of these are reasons 
A)  Pride of ownership 
B)  A feeling of permanence 
C)  A sense of stability 
D)  A tax shelter 
E)  All of these are reasons

Question 3

Which of the following is a major source of home mortgages?

Accepted Answer

A)  Commercial Banks 
B)  Thrift Institutions 
C)  Mortgage Bankers and Brokers 
D)  Credit Unions 
E)  All of the above 
A)  Commercial Banks 
B)  Thrift Institutions 
C)  Mortgage Bankers and Brokers 
D)  Credit Unions 
E)  All of the above

Question 4

For most homeowners,the most important financial reason for owning a home is:

Accepted Answer

A)  security for loans. 
B)  an inflation hedge. 
C)  a tax shelter. 
D)  a cash flow item. 
E)  psychic income. 
A)  security for loans. 
B)  an inflation hedge. 
C)  a tax shelter. 
D)  a cash flow item. 
E)  psychic income.

Question 5

Terminating a car lease before expiration is often difficult and costly.

Accepted Answer

A) True 
 B)False

Question 6

In a condominium and townhome,the buyer receives title to an individual unit and joint ownership of the common areas.

Accepted Answer

A) True 
 B)False

Question 7

A real estate sales contract will include:

Accepted Answer

A)  the amount you have paid as an earnest money deposit. 
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 have paid as an earnest money deposit. 
B)  the terms of the mortgage loan. 
C)  deed restrictions. 
D)  market value of the property. 
E)  none of the above

Question 8

Capitalized cost on an auto lease is the same as the price of the car.

Accepted Answer

A) True 
 B)False

Question 9

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 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.
-Paying mortgage points to get a lower rate of interest makes more sense if you expect to live in a home for a [longer | shorter] period of time.

Accepted Answer

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

Question 11

Townhome,condominium and co-op owners can deduct real estate taxes and mortgage interest on their federal income taxes.

Accepted Answer

A) True 
 B)False

Question 12

Patrick would like to know the monthly payments and the total finance charges on the following 2 loans:
a.
$30,000,9%,36 months
b.
$30,000,9%,48 months

Accepted Answer

The answer of Patrick would like to know the monthly...

Question 13

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 14

One who leases an automobile is typically responsible for early termination costs,even when early termination is due to theft or auto accidents.

Accepted Answer

A) True 
 B)False

Question 15

The greatest fixed cost involved with purchasing an automobile financed with a loan is usually the monthly loan payments.

Accepted Answer

A) True 
 B)False

Question 16

The sales contract on an automobile purchase contractually binds you to purchase the car at the price you offered in the contract.

Accepted Answer

A) True 
 B)False

Question 17

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

Accepted Answer

A) True 
 B)False

Question 18

At the end of the lease period,you are required to:

Accepted Answer

A)  purchase the vehicle at its residual value. 
B)  pay for unreasonable wear and tear. 
C)  pay for additional mileage. 
D)  b and c 
E)  a,b,and c 
A)  purchase the vehicle at its residual value. 
B)  pay for unreasonable wear and tear. 
C)  pay for additional mileage. 
D)  b and c 
E)  a,b,and c

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.
-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

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

Question 20

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 [longer | shorter] the period of time you expect to live in a house,the more likely refinancing is a sound financial decision.

Accepted Answer

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

Earnest money is the sum of money the home buyer pledges with the:

_____ is a reason for owning your own home.

Which of the following is a major source of home mortgages?

For most homeowners,the most important financial reason for owning a home is:

Terminating a car lease before expiration is often difficult and costly.

In a condominium and townhome,the buyer receives title to an individual unit and joint ownership of the common areas.

A real estate sales contract will include:

Capitalized cost on an auto lease is the same as the price of the car.

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

Townhome,condominium and co-op owners can deduct real estate taxes and mortgage interest on their federal income taxes.

Patrick would like to know the monthly payments and the total finance charges on the following 2 loans: a. $30,000,9%,36 months b. $30,000,9%,48 months

The seller of the house typically pays the:

One who leases an automobile is typically responsible for early termination costs,even when early termination is due to theft or auto accidents.

The greatest fixed cost involved with purchasing an automobile financed with a loan is usually the monthly loan payments.

The sales contract on an automobile purchase contractually binds you to purchase the car at the price you offered in the contract.

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

At the end of the lease period,you are required to:

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

Earnest money is the sum of money the home buyer pledges with the:

_____ is a reason for owning your own home.

Which of the following is a major source of home mortgages?

For most homeowners,the most important financial reason for owning a home is:

Terminating a car lease before expiration is often difficult and costly.

In a condominium and townhome,the buyer receives title to an individual unit and joint ownership of the common areas.

A real estate sales contract will include:

Capitalized cost on an auto lease is the same as the price of the car.

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

Townhome,condominium and co-op owners can deduct real estate taxes and mortgage interest on their federal income taxes.

Patrick would like to know the monthly payments and the total finance charges on the following 2 loans: a. $30,000,9%,36 months b. $30,000,9%,48 months

The seller of the house typically pays the:

One who leases an automobile is typically responsible for early termination costs,even when early termination is due to theft or auto accidents.

The greatest fixed cost involved with purchasing an automobile financed with a loan is usually the monthly loan payments.

The sales contract on an automobile purchase contractually binds you to purchase the car at the price you offered in the contract.

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

At the end of the lease period,you are required to:

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