Unit 2 Quiz (Chapters 5-7)

Jim wants to make an offer to buy an older house. At this point, he should

Set up a home inspection.

Major factors that affect the affordability of your mortgage include all of the following except

Size of the home.

All of the following are consumer credit protection laws except

The Credit Lawsuit Act

The finance charge for credit includes all of the following except

The amount borrowed.

As a result of being an armed services veteran, Dan should be eligible for a(n)

VA loan.

Ricky has a conventional mortgage. He can monitor the reduction of his loan balance through his payments by using _____ information.

amortization

Following the signing of the Bankruptcy Abuse Prevention and Consumer Protection Act of 2005, debtors seeking to erase all debts will have to wait ___ year(s) from their last bankruptcy before they can file again.

eight

When Sam applied for a loan, he was assured that his rate would not change if he closed within 30 to 90 days. Sam had a(n) ______ on the interest rate.

lock

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

Expected maintenance costs.

Paul is looking for a low-interest, low-downpayment loan for his first home, but he is not a veteran.. He might be eligible for a(n)

FHA loan.

If you have reached the upper limit of debt obligations, your debt-to-equity ratio is about

1.

Experts suggest that the debt payments-to-income ratio should be a maximum of

20%

What should a home buyer consider when evaluating a house?

All of these should be evaluated.

A direct loan for personal purposes, home improvements, or vacation expenses is called

An installment cash credit.

When Nancy buys her house, the mortgage company will usually conduct a(n)

Appraisal.

Personal bankruptcy can be filed under which section(s) of the U.S. bankruptcy code?

Chapters 7 and 13

Which of the following is a form of housing in which the owners pay a monthly fee for maintenance of the common areas?

Condominium

A service contract

Covers the repair costs of a product.

All of the following are variable operating costs for a vehicle except

Depreciation.

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)

Dual agent.

Pauline just submitted an offer on her dream home. As evidence of good faith, she also included a(n)

Earnest money.

Most products come with some guarantee of quality. Which of the following is usually in written form, created by the seller or manufacturer, and has two forms?

Express warranty

Which of the following acts sets procedures for promptly correcting billing mistakes, refusing to make credit card or revolving credit payments on defective goods, and promptly crediting your payments?

Fair Credit Billing Act of 1975

Franklin wants to sell his house himself. Which of the following is NOT correct about his sale?

He should show the house only when he is home alone.

Lonnie wanted to sell his house but didn't know what price to ask. He should consider all of the following except

His original cost.

Frank bought some miniblinds. Although he did not receive a written warranty, the blinds should be expected to open and close properly. What kind of warranty does Frank have?

Implied warranty

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

Impulse shopping.

Heidi plans to purchase a pickup truck. The range available for negotiation is the difference between the sticker price and the

Invoice price.

Which is NOT true about the Fair Credit Reporting Act?

It gives borrowers the right to know why they are denied credit.

This provides the tenant protection from rent increases.

Lease

Adolph has a low income and cannot afford his own attorney. He needs legal assistance and should make use of (a)

Legal aid society.

Karen bought a mixer. She received a warranty that covers only certain aspects of the product. If the product fails, she may be required to pay part of the costs for shipping or repairs. Which of the following warranties does she have?

Limited warranty

Most customer complaints result from the all of the following except

Long product lives.

All of the following are fixed operating costs for a vehicle except

Maintenance and repairs.

Veronica has had a variable-rate mortgage for several years. Unfortunately, the monthly mortgage payments have not covered her interest owed. As a result, her home equity is decreasing because of

Negative amortization.

Trenton wants to buy a house but can provide only a 10% down payment. He probably will be required to have

PMI.

During the closing for a home purchase , you should

Pay all closing costs, settle 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(n)

Payment cap.

Which of the following is an advantage of renting?

Renters have fewer responsibilities for maintenance than home owners.

George has never bought a new car before. Which of the following techniques should he use to get the best deal?

Research the dealer cost and begin negotiations from that point

Which of the following is a disadvantage of renting?

Tenants cannot take tax deductions for mortgage interest and property taxes.

If you are denied credit, you can contact the credit bureau and ask for a copy of your credit report. The bureau cannot charge a fee for this service as long as you ask to see your files within of notification that your credit application has been denied.

60 days.

Which of the following electronically subtracts money from your savings or checking account to pay for goods and services?

A debit card

Which of the following is not a legal option for high-income consumers?

A legal aid society

A prearranged loan for a specified amount that a consumer can use by writing a special check is known as

A revolving check credit.

According to the Fair Credit Billing Act, if a creditor fails to follow the rules that apply to correcting any billing errors, you have the right to sue for

Actual damages plus twice the amount of any finance charges.

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, which is called

Negative equity.

Kelly selected a home and submitted an offer to the seller.

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

Georgina and Henry have a family and are looking at houses. Which of the following is correct?

They should assess the school system in the area they want to live.

Elaine purchased her living unit in a building with five other separate units. She purchased a

Townhouse.