personal finance part 1 quiz 5

a cost associated with home buying would be:

property taxes

recently, jim dahl was on a bus tour in a mountain area. the bus broke down forcing the group to stay overnight. group members had to pay for their own hotel bills. jim believes that the hotel cost for the group should be paid by the tour company. which legal action would be most appropriate?

class action suit

which of the following types of warranties is a specific agreement created by the seller or manufacturer?

express

the major criticism of service contracts is:

high costs and a low chance of need

which of the following would increase the amount that a person could afford to spend on a home?

increased family income

a common financial benefit of home ownership is:

increased property value

arbitration differs from mediation in that arbitration:

is legally binding

which of the following would be an advantage of leasing a vehicle?

lease payments are likely to be lower than finance payments

brenda williams plans to rent instead of buy her housing. what advantage of renting will brenda encounter?

lower initial costs

_______ is considered a variable operating expense of an automobile.

maintenance

the process of resolving consumer complaints with the use of a third party who suggests a solution through discussion and negotiation is:

mediation

what is prepaid interest charged by a mortgage company?

points

pam mcnally is planning to use the services of the Better Business Bureau. a major purpose of the BBB is to:

resolve consumer complaints

most consumer complaints are resolved by:

returning to the place of purchase

a cost associated with renting would be:

security deposit

which of the following is an advantage of buying a home?

tax benefits

howard ramsell recently became aware of implied warranties that exist for consumer purchases. an implied warranty exists as a result of:

the intended use of a product

which of the following is an example of a closing cost?

title insurance

federal trade commission regulations require that:

used car buyers be informed if the vehicle comes with a warranty

todd foley is applying for a $100,000 mortgage. he can get a $600 monthly payment for principal and interest and no points, or a $520 monthly payment with 2 points how many months will it take todd to cover the cost of the discount points if he takes the lower monthly payment?

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