Personal Finance 6.07

Shelby is working on her spending plan and would like to spend less on her food for 6 months as she saves toward purchasing a more reliable vehicle. As she makes her plan, which factor would be least important to consider?

• How much time she has available to prepare food

• The skills she has acquired for preparing meals

• The nutritional value of the foods she purchases

• Her personal preferences

Melissa needs a vehicle and is considering leasing one. This means:

• she would be purchasing the vehicle by making payments over time.

• she would be renting the vehicle by making payments over time, although the vehicle title would remain with the lease grantor.

• her depreciation costs will likely be higher.

• she will need to pay a larger down payment to offset the lease agreement fees.

A rental agreement is often referred to as:

• a lease.

• an amenity.

• renters insurance.

• a mortgage.

Chad has decided to rent an apartment and is gathering information to be sure he has enough money saved for all the expenses when he moves in. His landlord explained to him that he would need to pay a refundable fee to cover any potential damages that might occur while Chad is living in the apartment. This fee is called the:

• rental agreement.

• down payment.

• amenities.

• security deposit.

Alyssa is considering purchasing a car and wants to be sure she can afford to drive it during the school year when she does not have a job. Which expense would not be considered part of the total transportation expenses?

• Automobile payment

• Fuel

• Parking

• Depreciation

Rent is defined as:

• the cost of using someone else’s property.

• the fee charged for performing property management tasks.

• an advance payment for costs beyond normal wear and tear.

• the purchase price of a housing unit.

Brett borrowed money to purchase a vehicle without making a down payment and now he owes more on the vehicle than it is worth. This situation is referred to as:

• depreciation.

• being upside down on the loan.

• leasing.

• a hidden cost.

In which scenario should renters insurance be considered?

• Steve and Teri have purchased a home in a rural area.

• Tim and Hanna are living with his parents in the basement of their home for six months while flood damage is being repaired in their home. They are paying his parents rent during the time they are living in their home.

• Zach and Leah have rented an apartment in an urban area.

• Don and Denise are landlords for several rental properties.