1.04 Quiz: Establishing a Home

What is the relationship between the nation's economic health and a community's housing market? Choices: A weak economy raises housing costs. The economy has no affect on housing markets. A strong economy raises housing costs. A strong economy lowers housing costs.

A strong economy raises housing costs.

Why do housing ads use abbreviations rather than standard English? Choices: To confuse people. To fit more information into small spaces. Because abbreviations are easier to understand. So that only experts can understand them.

To fit more information into small spaces.

Why is buying a house a personal decision? Choices: Because most people make it by themselves. Because it is influenced by people's values and lifestyles. Because it is influenced by people's moods. Because it is based largely on a person's income.

Because it is influenced by people's values and lifestyles.

Why is making a housing decision a personal as well as financial decision? Choices: Because individuals make them based on their personal finances. Housing decisions must be affordable and fulfill psychological needs. Because a bad financial decision can ruin your personal life. Housing decisions are only financial decisions.

Housing decisions must be affordable and fulfill psychological needs.

Which of the following best defines a covenant? Choices: Restrictions about what can be done to a property or who it can be sold to. The terms of the sale of a home. A secret agreement between the seller and the buyer of a house. An agreement between a landlord and a tenant.

Restrictions about what can be done to a property or who it can be sold to.

If you bought a condominium, which of the following maintenance costs would you be responsible for? Choices: Any repairs needed to the building. All real estate taxes. Shared living spaces and amenities. Lawn upkeep.

Shared living spaces and amenities.

What housing option would you expect to be most available in suburban areas? Choices: Rental apartments Single-family homes Multi-family homes Two-family homes

Single-family homes

What conclusion could you make about community values in an area that has a covenant that restricts the removal of healthy trees? Choices: They are against property rights. They are against individual freedom. They value natural beauty. They value the community more than the individual.

They value natural beauty.

What is the reason that most homeowners are responsible for keeping their property clean and tidy? Choices: To maintain property values. To keep complaints from neighbors down. To comply with state laws. To keep people with lower incomes from being able to move in.

To maintain property values.

Which of the following is an advantage of renting over buying a home? Choices: You don't have to pay a security deposit. You don't have to pay to maintain the property if you rent. Being able to miss a payment. Having to make a down payment.

You don't have to pay to maintain the property if you rent.

Identify the factors involved in housing decisions. Choices: Lifestyles Income Values All of the choices are correct.

All of the choices are correct.

Which of the following best defines the term "amenities"? Choices: The rights of the owner or renter. The terms of a rental agreement. Benefits that add value or increase desirability. Additional costs involved.

Benefits that add value or increase desirability.

Why must you pay a security deposit when you rent a home? Choices: To pay for protection of the property against thieves. To prove you are a good credit risk. In case you damage the property or fail to pay rent. To keep someone else from being able to rent it.

In case you damage the property or fail to pay rent.

How do high interest rates affect a community's housing market? Choices" It lowers the cost of housing. It has no affect on housing costs. It raises the costs of housing. It leads to sellers financing the sales of their homes.

It raises the costs of housing.

Inner city areas tend to have mostly which of the following housing options? Choices: Multi-family homes Two-family homes Single-family homes Rental apartments

Rental apartments

Identify the answer choice that is the best example of how aesthetic values influence housing decisions. Choices: People need a home large enough for their entire family. Some people prefer fancy homes, while others like their homes to be more plain. Some people want homes that are close to schools. Some people want to feel safe more than anything else.

Some people prefer fancy homes, while others like their homes to be more plain.

Which would be the most likely to happen to the maintenance costs of a single-family house over time? Choices: They would stay the same. They would go down. They would go up. They would become more predictable.

They would go up.

What does the term "right to entry" mean in a rental agreement? Choices: The conditions under which the police can enter a rental unit. The conditions under which people can visit a rental unit. The conditions under which the landlord can enter the tenant's unit. The conditions under which the tenant can enter the rental unit.

The conditions under which the landlord can enter the tenant's unit.

When renting a home, what is the right to "prior notice"? Choices: The right to know if the landlord is going to sell the property. The right to know when the rent is going to be increased. The right to know about any new tenants moving in. The right of notice before the landlord can enter a rental unit.

The right of notice before the landlord can enter a rental unit.

Which of the following defines "escrow"? Choices: Ownership of real estate or personal property. When a neutral third party holds funds before the sale of a home is finalized. An increase in the value of a piece of property. The rejection of an offer to enter into a contract.

When a neutral third party holds funds before the sale of a home is finalized.