Question 1

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.F) A) and D)
G) C) and D)

Question 2

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 3

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.F) B) and C)
G) None of the above

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.F) B) and E)
G) A) and C)

Question 5

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 cF) D) and E)
G) C) and E)

Question 6

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.F) All of the above
G) A) and B)

Question 7

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 8

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

Accepted Answer

A) True 
 B)False

Question 9

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 theseF) B) and E)
G) B) and D)

Question 10

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 11

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 12

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

Accepted Answer

A) True 
 B)False

Question 13

_____ 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 reasonsF) None of the above
G) D) and E)

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.F) A) and B)
G) A) and E)

Question 15

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 16

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 reductionF) A) and B)
G) A) and E)

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 taxesF) C) and D)
G) A) and B)

Question 18

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 19

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.F) All of the above
G) None of the above B

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.
-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 [...

Exam 5: Making Automobile and Housing Decisions

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

Correct Answer
verified

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.

Correct Answer
verified

A buydown refers to a:

Correct Answer
verified

The first choice in housing in the United States is:

Correct Answer
verified

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

Correct Answer
verified

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

Correct Answer
verified

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

Correct Answer
verified
True

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

Correct Answer
verified

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.

Correct Answer
verified

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

Correct Answer
verified

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

Correct Answer
verified

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

Correct Answer
verified

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

Correct Answer
verified

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

Correct Answer
verified

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.

Correct Answer
verified

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

Correct Answer
verified

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

Correct Answer
verified

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

Correct Answer
verified
True

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

Correct Answer
verified
B

Correct Answer
verified

Exam 5: Making Automobile and Housing Decisions

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

Correct AnswerverifiedShow Answer

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.

Correct AnswerverifiedShow Answer

A buydown refers to a:

Correct AnswerverifiedShow Answer

The first choice in housing in the United States is:

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedTrue

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

Correct AnswerverifiedShow Answer

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.

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

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.

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedTrue

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

Correct AnswerverifiedB

Correct AnswerverifiedShow Answer

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True

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True

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B

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