Deck 12: Being a Better Consumer of Housing and Vehicles

Question 1

PITI stands for

A)payment, interest, taxes, and insurance.
B)principle, interest, taxes, and insurance.
C)principle, illiquid, taxes, and insurance.
D)payment, illiquid, taxes, and insurance.

Answer 1

B

Question 2

The main type of car lease is

A)open-end or finance leases.
B)closed-end or ʺwalk awayʺ.
C)single-payment leases.
D)all of the above

Answer 2

D

Question 3

A loan to purchase real estate in which the real estate serves as collateral is a

A)mortgage.
B)principle loan.
C)lease.
D)down payment.

Answer 3

A

Question 4

A typical down payment on a home is what percentage of the purchase price?

A)0-10%
B)10-20%
C)30-40%
D)20-30%

Question 5

To formulate net worth, subtract your assets from your liabilities.

Question 6

The price of a car, including options, transportation charges, and any market adjustments is called the

A)interest price.
B)manufacturerʹs price.
C)sticker price.
D)invoice price.

Question 7

If you are going to be in an area less than three years, renting may be better than buying from a financial standpoint.

Question 8

Who is said to be the Ultimate Consumer?

A)retired people
B)teens
C)newlyweds
D)college students

Question 9

About what percentage of homes are sold by realtors?

A)30%
B)10%
C)90%
D)60%

Question 10

The 2½ Times Rule says you should multiply the annual household income by two and one half to determine the maximum amount to be spent on buying a home.

Question 11

If a home is difficult to sell readily, it is said to be

A)liquid.
B)fluid.
C)solid.
D)illiquid.

Question 12

An adjustable rate mortgage has a fixed rate.

Question 13

Owning a home is often called the American Dream.

Question 14

Lemon laws pertain to

A)cell phones.
B)computers.
C)cars.
D)lemons.

Question 15

Predatory lending lures people into loans that they canʹt really afford.

Question 16

Consumers buy more in their first six months of marriage than a settled household does in five years.

Question 17

Payment required by the landlord in advance to cover wear and tear of the unit and to secure a unit for the renter is called the

A)security deposit.
B)rent.
C)lease.
D)co-payment.

Question 18

A sublease is a legal document between the renter and landlord, describing the rights and responsibilities of both.

Question 19

It is estimated that what percentage of new cars are leased?

A)10%
B)90%
C)30%
D)60%

Question 20

In a typical family budget, housing represents 32 percent of the total.

Question 21

Stable employment is an important factor in how a lender will evaluate an application.)

Question 22

The increase in a homeʹs value is called .

Question 23

High balling refers to a very low price that is quoted but there are add-on costs at the end that drive up the final price.

Question 24

What is the difference between a condo and a cooperative?

Question 25

Assets are owned while liabilities are .

Question 26

What are the advantages of leasing a car?

Question 27

Units that are fully or partially assembled in a factory and moved to the living site are examples of .

Question 28

The procedure to get money back or replace ʺlemonsʺ is called revocation of acceptance.

Question 29

When there is a(n), the property is leased by the original tenant to another person or people.

Question 30

Reverse mortgages pay the homeowner.

Question 31

What should you do before buying a used car?

Question 32

Payment for the use of property is called .

Question 33

What should you do before signing a lease?