Module 10

Which of these is not included in a purchase and sales agreement?

Location of all homes toured with a realtor before making an offer on this home

_____ are the the additional costs (i.e., what one must give up) that result from getting one more of something.

Marginal Costs

A _____ is a fee levied by your lender that represents pre-paid interest on your mortgage loan.

Point

Budget billing for utilities is preferred because

An individual can plan accurately for expenses

Installation and start-up costs for utilities are called __________________

Deposits

Which of these categories of expenses would be present for both renters and buyers?

Electric and natural gas utilities expense

Which of these is NOT part of the PACED decision model?

Exclusions

True or false: Laundry facilities must be available at all rented apartments due to state law.

False

True or false: When you lease a car you have to be concerned about depreciation.

False

True or false: Fixed rate mortgages can come in different term lengths.

True

Which of the following is NOT something that lenders consider before approving a mortgage?

Whether or not you have pets

Which of these is NOT a benefit of buying a used car?

Your car may be more prone to breakdowns since it is older.

Leasing a car might be a good option for someone who

always wants to drive a newer car

Preapproval for a mortgage

can save a lot of time and money when you buy a house.

Using coupons and rebates to lower the price of an item is an example of ______

comparison shopping

The first step in the PACED decision model is

define the problem

By using a spreadsheet to record monthly utility expenses,

homeowners can predict when expenses will go up and down for each service provider

Renting would be better than buying for an individual who _____

needs to relocate every year for work

A home inspection

should be done by a licensed building inspector.

Buying a car might be the best option for someone who

wants to own the car as an asset at the end of the term

Spending plans are divided into three categories with roughly ______% of the after tax budget going to the category of needs and _______ % of the after tax budget going to wants, with the rest going to ESI.

50, 30

Which of the following could be included in the expenses for a renter?

ALL OF THESE a. First and last month's rent b. Security Deposit c. Additional fees.

Which of the following is true?

Add-ons from the dealership like rustproofing are generally not a good idea.

Companies try to get consumers to spend money on their products by promoting a particular good or service to consumers. This is called _____________

Advertising.

This type of insurance covers damage to your car in case of theft or vandalism.

Comprehensive

________ may lead to spending beyond one's means, causing them to borrow money for expensive purchases.

Conspicuous consumption

Which of the following are not covered by homeowners' insurance?

Expensive artwork

A ______ is a formal legal contract between a renter and a landlord

Lease

Which of the following is not true about property tax?

The higher the value of your home, the lower the amount of tax you must pay Stuff that IS true: - Multiple levels of government can assess a tax - The size of the tax is based on the value of the home - Each of the 50 states charge property tax to their residents

Furniture acquired from friends and relatives will ______

reduce the cost of furnishing your house