Question 1

INSTRUCTIONS: Choose the word or phrase in [ ] which will correctly complete the statement. Select
-The most popular type of lease is the [closed-end | open-end] lease.
A)for the first item
B)for the second item
C)if neither item will correctly complete the

Accepted Answer

The most popular type of lease is the closed-end lease, which is also known as the "walk away" lease. This type of lease allows the lessee to simply return the car at the end of the lease term without any further financial obligations, unless there is excess mileage or wear and tear. In contrast, an open-end lease requires the lessee to pay any difference between the residual value and the actual market value of the car at the end of the lease, which can result in unexpected costs.

Question 2

INSTRUCTIONS: Choose the word or phrase in [ ] which will correctly complete the statement. Select
-Terminating a lease early is typically [difficult | easy].
A)for the first item
B)for the second item
C)if neither item will correctly complete the

Accepted Answer

Terminating a lease early is typically difficult as landlords typically require tenants to fulfill the full lease term or find a replacement tenant.

Question 3

INSTRUCTIONS: Choose the word or phrase in [ ] which will correctly complete the statement. Select
-The condominium/townhome buyer shares joint ownership of [common areas | his living space].
A)for the first item
B)for the second item
C)if neither item will correctly complete the

Accepted Answer

The common areas are shared among all owners in a condominium or townhome complex, while each owner has ownership rights to their individual living space.

Question 4

INSTRUCTIONS: Choose the word or phrase in [ ] which will correctly complete the statement. Select
-A major variable cost of owning a car is [the loan payment | gasoline].
A)for the first item
B)for the second item
C)if neither item will correctly complete the

Accepted Answer

While a loan payment is a major cost for buying a car, it is not a variable cost as it remains the same each month. Gasoline, on the other hand, is a variable cost as it varies based on how much the car is driven and the current price of gas. Therefore, the correct answer is "gasoline."

Question 5

A declining rent ratio indicates
A) lower housing prices relative to renting
B) lower rent relative to housing prices
C) higher housing prices relative to renting
D) none of the above

Accepted Answer

The answer of A declining rent ratio indicates
A) lower housing...

Question 6

INSTRUCTIONS: Choose the word or phrase in [ ] which will correctly complete the statement. Select
-In the same geographic area,the cost of a [detached home | condo] will usually be lower.
A)for the first item
B)for the second item
C)if neither item will correctly complete the

Accepted Answer

The answer of INSTRUCTIONS: Choose the word or phrase in...

Question 7

INSTRUCTIONS: Choose the word or phrase in [ ] which will correctly complete the statement. Select
-The average cost of owning is typically much less than leasing if you own the vehicle over [two | four] years.
A)for the first item
B)for the second item
C)if neither item will correctly complete the

Accepted Answer

Owning a vehicle typically becomes more cost-effective than leasing when the ownership period extends beyond a few years, often around four years or more, due to the accumulation of equity and the absence of ongoing lease payments.

Question 8

INSTRUCTIONS: Choose the word or phrase in [ ] which will correctly complete the statement. Select
-If you drive a lot of miles each year rather than a few,the operating cost per mile will [increase | stay the same | decrease].
A)for the first item
B)for the second item
C)if neither item will correctly complete the

Accepted Answer

The operating cost per mile will decrease because fixed costs are spread over more miles, reducing the cost per mile.

Question 9

INSTRUCTIONS: Choose the word or phrase in [ ] which will correctly complete the statement. Select
-When buying a home,the [emotional | financial] factors often carry the greatest weight.
A)for the first item
B)for the second item
C)if neither item will correctly complete the

Accepted Answer

Emotional factors often carry the greatest weight when buying a home, as people are often drawn to homes that they feel a connection to, rather than homes that are simply financially sound.

Question 10

INSTRUCTIONS: Choose the word or phrase in [ ] which will correctly complete the statement. Select
-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.
A)for the first item
B)for the second item
C)if neither item will correctly complete the

Accepted Answer

A closed-end lease typically has a fixed term and a set residual value that is determined at the beginning of the lease. At the end of the term, the lessee returns the car and has no further financial obligation, regardless of the car's actual value.

Question 11

INSTRUCTIONS: Choose the word or phrase in [ ] which will correctly complete the statement. Select
-The biggest fixed cost of owning a car is [the loan payment | insurance].
A)for the first item
B)for the second item
C)if neither item will correctly complete the

Accepted Answer

The answer of INSTRUCTIONS: Choose the word or phrase in...

Question 12

INSTRUCTIONS: Choose the word or phrase in [ ] which will correctly complete the statement. Select
-It would make sense to purchase a vehicle at the end of a close-end lease period if the residual value in the lease agreement was [more | less] than the car's market value.
A)for the first item
B)for the second item
C)if neither item will correctly complete the

Accepted Answer

The answer of INSTRUCTIONS: Choose the word or phrase in...

Question 13

Which of the following is true regarding auto loans?
A) Longer term,lower rate,lower payment
B) Shorter term,lower rate,lower payment
C) Longer term,higher rate,lower payment
D) Shorter term,higher rate,higher payment

Accepted Answer

The answer of Which of the following is true regarding...

Question 14

Homeowners may be allowed to deduct the following on their taxes
A) homeowners insurance
B) mortgage interest
C) home improvements
D) mortgage principal

Accepted Answer

Homeowners may deduct mortgage interest on their taxes, which can provide significant savings. This deduction is only available to those who itemize their deductions, rather than taking the standard deduction.

Question 15

INSTRUCTIONS: Choose the word or phrase in [ ] which will correctly complete the statement. Select
-The term condominium/townhome refers to a type of [architecture | ownership].
A)for the first item
B)for the second item
C)if neither item will correctly complete the

Accepted Answer

The term condominium/townhome refers to a type of ownership, not architecture. Condominiums and townhomes are both types of housing units that are individually owned but share common areas and amenities.

Question 16

INSTRUCTIONS: Choose the word or phrase in [ ] which will correctly complete the statement. Select
-The first major expenditure most people make is to buy a [house | car].
A)for the first item
B)for the second item
C)if neither item will correctly complete the statement.

Accepted Answer

The answer of INSTRUCTIONS: Choose the word or phrase in...

Question 17

INSTRUCTIONS: Choose the word or phrase in [ ] which will correctly complete the statement. Select
-With a(n)[closed-end | open-end] lease,one owes more at the end of the lease if the car is worth less than its projected value at the end of the lease.
A)for the first item
B)for the second item
C)if neither item will correctly complete the

Accepted Answer

The answer of INSTRUCTIONS: Choose the word or phrase in...

Question 18

INSTRUCTIONS: Choose the word or phrase in [ ] which will correctly complete the statement. Select
-There is direct ownership of your living space in a [condo | co-op apartment].
A)for the first item
B)for the second item
C)if neither item will correctly complete the

Accepted Answer

A condo (short for condominium) typically refers to an individually owned unit within a larger multi-unit building or complex, while a co-op (short for cooperative apartment) refers to a share in a corporation that owns the entire building or complex, with residents as shareholders. Therefore, direct ownership would only apply to a condo.

Question 19

INSTRUCTIONS: Choose the word or phrase in [ ] which will correctly complete the statement. Select
-As a homeowner,you can deduct the mortgage interest and [property taxes | property insurance] if you itemize on your federal taxes.
A)for the first item
B)for the second item
C)if neither item will correctly complete the

Accepted Answer

Homeowners can deduct mortgage interest and property taxes when itemizing on their federal taxes. Property insurance is not deductible in this scenario.

Question 20

As home prices have fallen in recent year,the rent ratio
A) has increased and rent affordability has increased
B) has decreased and rent affordability has decreased
C) has increased and rent affordability has decreased
D) has decreased and rent affordability has increased

Accepted Answer

The answer of As home prices have fallen in recent...

Quiz 5: Making Automobile and Housing Decisions

INSTRUCTIONS: Choose the word or phrase in [ ] which will correctly complete the statement. Select -The most popular type of lease is the [closed-end | open-end] lease.

INSTRUCTIONS: Choose the word or phrase in [ ] which will correctly complete the statement. Select -Terminating a lease early is typically [difficult | easy].

INSTRUCTIONS: Choose the word or phrase in [ ] which will correctly complete the statement. Select -The condominium/townhome buyer shares joint ownership of [common areas | his living space].

INSTRUCTIONS: Choose the word or phrase in [ ] which will correctly complete the statement. Select -A major variable cost of owning a car is [the loan payment | gasoline].

A declining rent ratio indicates

INSTRUCTIONS: Choose the word or phrase in [ ] which will correctly complete the statement. Select -In the same geographic area,the cost of a [detached home | condo] will usually be lower.

INSTRUCTIONS: Choose the word or phrase in [ ] which will correctly complete the statement. Select -The average cost of owning is typically much less than leasing if you own the vehicle over [two | four] years.

INSTRUCTIONS: Choose the word or phrase in [ ] which will correctly complete the statement. Select -If you drive a lot of miles each year rather than a few,the operating cost per mile will [increase | stay the same | decrease].

INSTRUCTIONS: Choose the word or phrase in [ ] which will correctly complete the statement. Select -When buying a home,the [emotional | financial] factors often carry the greatest weight.

INSTRUCTIONS: Choose the word or phrase in [ ] which will correctly complete the statement. Select -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.

INSTRUCTIONS: Choose the word or phrase in [ ] which will correctly complete the statement. Select -The biggest fixed cost of owning a car is [the loan payment | insurance].

INSTRUCTIONS: Choose the word or phrase in [ ] which will correctly complete the statement. Select -It would make sense to purchase a vehicle at the end of a close-end lease period if the residual value in the lease agreement was [more | less] than the car's market value.

Which of the following is true regarding auto loans?

Homeowners may be allowed to deduct the following on their taxes

INSTRUCTIONS: Choose the word or phrase in [ ] which will correctly complete the statement. Select -The term condominium/townhome refers to a type of [architecture | ownership].

INSTRUCTIONS: Choose the word or phrase in [ ] which will correctly complete the statement. Select -The first major expenditure most people make is to buy a [house | car].

INSTRUCTIONS: Choose the word or phrase in [ ] which will correctly complete the statement. Select -With a(n) [closed-end | open-end] lease,one owes more at the end of the lease if the car is worth less than its projected value at the end of the lease.

INSTRUCTIONS: Choose the word or phrase in [ ] which will correctly complete the statement. Select -There is direct ownership of your living space in a [condo | co-op apartment].

INSTRUCTIONS: Choose the word or phrase in [ ] which will correctly complete the statement. Select -As a homeowner,you can deduct the mortgage interest and [property taxes | property insurance] if you itemize on your federal taxes.

As home prices have fallen in recent year,the rent ratio