Question 1

Automobiles tend to decrease in value over time.

Accepted Answer

A) True 
 B)False

Question 2

A 5 percent down payment will result in larger monthly mortgage payments than a 10 percent down payment on the same house for the same maturity mortgage.

Accepted Answer

A) True 
 B)False

Question 3

An increase in the "rent ratio" indicates that renting is more affordable relative to housing prices.

Accepted Answer

A) True 
 B)False

Question 4

The interest rate charged on adjustable-rate mortgages will change from time to time based on a specified index.

Accepted Answer

A) True 
 B)False

Question 5

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

Accepted Answer

A) True 
 B)False

Question 6

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 7

The loss of value in a car over time is called

Accepted Answer

A)  maintenance. 
B)  loan payments. 
C)  sales payments. 
D)  commissions. 
E)  depreciation. 
A)  maintenance. 
B)  loan payments. 
C)  sales payments. 
D)  commissions. 
E)  depreciation.

Question 8

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

Accepted Answer

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

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.
-The Real Estate Settlement Procedures Act governs [mortgage regulations | mortgage closings].

Accepted Answer

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

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

Accepted Answer

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

Question 11

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

Accepted Answer

A) True 
 B)False

Question 12

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 13

If you made a down payment of $11,000 on a $110,000 house,the lender no doubt will require ____ as a result of the size of the down payment.

Accepted Answer

A)  closing points 
B)  a bond 
C)  mortgage insurance 
D)  application fees 
E)  homeowner's insurance 
A)  closing points 
B)  a bond 
C)  mortgage insurance 
D)  application fees 
E)  homeowner's insurance

Question 14

The capital cost reduction on a vehicle lease is

Accepted Answer

A)  like the down payment on a loan. 
B)  the rate of interest on a lease. 
C)  the residual value at the end of the lease. 
D)  the depreciation on a lease. 
E)  the same as the purchase option on a lease. 
A)  like the down payment on a loan. 
B)  the rate of interest on a lease. 
C)  the residual value at the end of the lease. 
D)  the depreciation on a lease. 
E)  the same as the purchase option on a lease.

Question 15

Low-balling 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 16

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 17

Negative amortization is possible with a fixed-rate mortgage.

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.
-The first major expenditure most people make is to buy a [house | car].

Accepted Answer

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

Question 19

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 20

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

Accepted Answer

A) True 
 B)False

Automobiles tend to decrease in value over time.

A 5 percent down payment will result in larger monthly mortgage payments than a 10 percent down payment on the same house for the same maturity mortgage.

An increase in the "rent ratio" indicates that renting is more affordable relative to housing prices.

The interest rate charged on adjustable-rate mortgages will change from time to time based on a specified index.

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

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

The loss of value in a car over time is called

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

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 Real Estate Settlement Procedures Act governs [mortgage regulations | mortgage closings].

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

A loan-to-value ratio of 80 percent would require a buyer to make a 20% 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. -If you qualify,you might be able to buy a home with no down payment with [an FHA | a VA] loan.

If you made a down payment of $11,000 on a $110,000 house,the lender no doubt will require ____ as a result of the size of the down payment.

The capital cost reduction on a vehicle lease is

Low-balling 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.

Generally,renting would be preferred to buying when

Negative amortization is possible with a fixed-rate mortgage.

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 first major expenditure most people make is to buy a [house | car].

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

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

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

Automobiles tend to decrease in value over time.

A 5 percent down payment will result in larger monthly mortgage payments than a 10 percent down payment on the same house for the same maturity mortgage.

An increase in the "rent ratio" indicates that renting is more affordable relative to housing prices.

The interest rate charged on adjustable-rate mortgages will change from time to time based on a specified index.

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

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

The loss of value in a car over time is called

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

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 Real Estate Settlement Procedures Act governs [mortgage regulations | mortgage closings].

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

A loan-to-value ratio of 80 percent would require a buyer to make a 20% 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. -If you qualify,you might be able to buy a home with no down payment with [an FHA | a VA] loan.

If you made a down payment of $11,000 on a $110,000 house,the lender no doubt will require ____ as a result of the size of the down payment.

The capital cost reduction on a vehicle lease is

Low-balling 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.

Generally,renting would be preferred to buying when

Negative amortization is possible with a fixed-rate mortgage.

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 first major expenditure most people make is to buy a [house | car].

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

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

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