Chapters 6-7

The unit price of a two pound box of brown sugar that costs $3.20 is A. $0.10 per ounce B. $6.40 per ounce C. $0.20 per ounce

$0.10 per ounce

Carrie bought a house five years ago at $150,000 at that time she borrowed $140,000 from her bank and is now worth $162,000. Her PMI will automatically be dropped when her mortgage balance drops to A. $117,000 B. $162,000 C. $122,000

$117,000

Marcus can afford a monthly mortgage augment of $900. If he is eligible for 30 years at 5% A. $324,000.00 B. $167,597.77 C. $510,015.00

$167,597.77

If you are selling your house by owner, you should still enlist the assistance of A. A real estate agent to help with marketing B. Your brother in law to aid with legal issues C. A lawyer or title company to assist witht eh contract closing and other legal matters

A lawyer or title company to assist with the contract, closing, and other legal matters

While evaluating alternatives, all of the following are appropriate questions you could ask before making a major purchase except A. Should I pay for the items with cash or buy on credit B. Which brands should i consider C. All of these are questions that should be asked

All of these are questions that should be asked

What should a home buyer consider when evaluating a house A. School system B. Zoning laws C. All of these should be evaluated

All of these should be evaluated

When jane researched the brands and prices of refrigerators, she was A. Comparison shopping B. Impulse shopping C. Compulsive shopping

Comparison shopping

Madeline wants to purchase a larger house. However, she has not yet sold her current home. She may want to include a(n) ________ in her offer. A. Dual agent B. Contingency clause C. An appraisal

Contingency clause

Which of the following is the document that transfers owndserhip of one property from one owner to the next A. Deed B. PMI C. Escrow

Deed

Frank and Dianne want to buy a house. Which of the following do they need before they purchase a house? A. Renters insurance B. Down payment C. Mortgage principal

Down payment

Opal is a real estate agent who represents the buyer as well as the seller. In some states, the buyers are required to sign a disclosure acknowledging that they are aware that Opal is working as a(n) A. Earned money B. An appraisal C. A dual agent

Dual agent

Which of the following is an account used to pay property taxes and home insurance A. PMI B. Deed C. Escrow

Escrow

Quinn applied for a loan. He provided information about his finances and the home he plans to purchase. Results of the affordability mortgage calculation included all of the following except A. Expected maintainence costs B. The monthly mortgage payment he can afford C. The home purchase price he can afford

Expected maintainence costs

Which of the followin is usually in written form, created by the seller or manufacturer, and has two forms A. Corrosion warrenty B. Express warrenty C. Full warrenty

Express warranty

Mike bought a new car. His new car warranty probably included all of the following except A. Extended coverage for air conditioning B. Power train coverage C. Corrosion warrenty

Extended coverage for air conditioning

Paul is looking for a low interest low down payment loan for hi first home, but he is not a veteran. He might be eligible for A. FHA loan B. VA loan C. Payment cap

FHA loan

This type of warranty states that a defective product can be fixed or replaces durin a reasonable amount of time A. Limited warrently B. Full warrently C. Implied warrently

Full warranty

This type of warrently covers the products intended use or other basic understands that are not in writing A. "As is" warrenty B. Implied warrently C. Limited warrenty

Implied warrently

While paul was shopping for a new chainsaw, he found a great deal on a new drill and bought it. This is an example of A. Trade off shopping B. Compulsive shopping C. Impulse shopping

Impulse shopping

If you do not pay back any of the loan amount for a portion of the loan period but are not defaulting in the loan, you have an A. Interest only mortgage B. Buy-down C. Home equity mortgage

Interest only mortgage

The dealers cost is also known as the A. Set price B. Sticker price C. Invoice price

Invoice price

This provides the tenant protection from rent increases A. Lease B. Sublease C. Lessor

Lease

Adolph has a low income and cannot afford his own attorney. He needs legal assistance and should make use of a A. Class action lawsuit B. Lawyer C. Legal aid society

Legal aid society

This type of warranty covers only certain aspects of the product, such as parts A. Full warrently B. Express warrenty C. Implies warrenty D. Limited warrenty

Limited warrently

A variable operating cost for a vehicle is A. Insurance B. Maintainence and repairs C. License and registration

Matainance and repairs

Private mortgage insurance

Must be terminated automatically when the homeowner's equity reaches 22% of the property value at the time the loan was initiated

These products are highly advertised and available at many stores A. Store brands B. Private label brands C. National brands

National brands

The lowest payment does not necessarily mean the best credit plan. If your car loan is a long period of time, you may end up owing more than the car is worth. This is called A. Low interest loans B. Low monthly payments C. Negative equity

Negative equity

Trenton wants to buy a house but can provide only a 10% down payment. He probably will be required to have A. Escrow account B. PMI payments C. Amortization

PMI payments

During the closing for a home purchase, you will normally do which of the following A. Paying all closing costs, settle las minute details, and sign documents B. Order an agreement C. Review zoning laws

Pay all closing costs, setting last minute details, and sign documents

Yvette has a flexible-rate mortgage that limits the amount to which her monthly payments can rise. This feature is called a A. FHA loan B. VA loan C. Payment cap

Payment cap

These products are sold by one chain of stores and are low cost alternatives to famous name products A. National brands B. Private label or store brands C. Counterfeit brands

Private label or store brands

A reverse mortgage A. Is the same thing as a second mortgage B. Proves older home owners with tax free income in the from of a loan that is repaid when the home is sold or the hole owner dies C. Allows a homeowner to a line of credit program

Provides older home owners with tax-free income in the form of a loan that is repaid when the home is sold or the home owner dies.

George has never bought a new car before. Which of the following techniques should he use to get the best deal? A. Highballing B. Tell the dealer the highest monthly payment he can afford C. Research the actual dealer cost and begin negotiation from that point

Research th actual dealer cost and begin negotiation from that point

The expected value of a vehicle at the end of the lease is called the A. Residual value B. Capitalized cost C. Invoice price

Residual value

If you have a problem whose remedy will be between $1500 and $3000, the appropriate tool to use would be a A. Small claims court B. Legal aid society C. Lawyer

Small claims court

The amount printed on a label with the suggested retail price that is posted on a vehicle is called the A. Invoice price B. Set price C. Sticker price

Sticker price

Kelly selected a home and submitted an offer to the seller. A. The seller may reject the offer and choose to provide a counter offer B. The seller must accept her offer C. Her offer must have been for the asking price

The seller may reject the offer and choose to provide a counteroffer

As a result of being an armed services veteran, dan should be eligible for a A. Payment cap B. FHA loan C. VA loan

VA loan

This is a written guarantee from the manufacture that specifies the conditions under whic the product can be returned, replaced, or repaired A. Warrenty B. Rebate C. Unit pricing

Warranty