Ch. 6 Own a Home or Car Test

The principal of a mortgage loan is the

• down payment minus the purchase price.

• purchase price minus the down payment.

• down payment plus the closing costs.

• purchase price minus the closing costs.

All of the following are key cost items in the purchase of a new car except

• rebates.

• sales tax.

• down payment.

• lease terms.

Which of the following one-time payments are renters typically required to pay in addition to their first month’s rent when they sign a lease?

• security deposit

• renters policy premium

• lease tax

• utilities payment

The rate of depreciation of a car can be calculated by

• dividing the original cost by the average annual depreciation.

• dividing the average annual depreciation by the original cost.

• subtracting the trade-in resale value from the original cost.

• dividing the total depreciation by the number of years.

Which of the following is typically NOT associated with leasing a car?

• down payment

• residual value

• trade-in value

• mileage allowed

Property tax rates may be given as each of the following except

• a value per $100 of assessed value.

• mills per dollar of assessed value.

• cents per dollar of assessed value.

• dollars per cent of assessed value.

Which of the following may be considered a financial advantage of renting a house or apartment?

• Renters do not have to pay a large down payment.

• Renters have more predictable housing costs.

• Renters do not have to worry about major unexpected housing expenses.

• all of the above

Which of the following would be considered a financial advantage of renting a house or apartment?

• Renters receive no federal income tax benefits.

• Renters do not have the maintenance costs associated with home ownership.

• Renters do not build equity on the housing they rent.

• none of the above

Which of the following is NOT a typical closing cost associated with the sale of a home?

• homeowners insurance premiums

• legal fees

• title insurance

• appraisal and inspection fees

Which type of car insurance covers damage or loss to a vehicle from fire, theft, vandalism, hail, and other causes?

• property damage

• bodily damage

• comprehensive damage

• collision