Financial Literacy Test (Chp #7-8)

What does the term "Staging" mean during the sale of a home...

• Staging is the process of demolishing old structures.
• Staging refers to the process of preparing a home for sale to make it more attractive to buyers.
• Staging refers to the final inspection before closing a sale.
• Staging is a term used for the legal paperwork in real estate transactions.

What does the term Pre-approved mean?

• Pre-approved refers to a loan that is guaranteed regardless of the borrower's financial status.
• Pre-approved indicates that a borrower has no credit history.
• Pre-approved means a borrower has been fully approved for credit without any conditions.
• Pre-approved means a borrower has been tentatively approved for credit based on an initial evaluation.

Does PMI mean "Private Mortgage Insurance" ?

• Yes/True

• No/False

What is a Fixed Rate Mortgage?

• A Fixed Rate Mortgage requires monthly payments that change over time.
• A Fixed Rate Mortgage is only available for commercial properties.
• A Fixed Rate Mortgage has a variable interest rate.
• A Fixed Rate Mortgage is a home loan with a constant interest rate.

What is an Adjustable Rate Mortgage?

• A fixed-rate mortgage that never changes.
• A type of loan that is only available for commercial properties.
• A mortgage that requires no down payment.
• An Adjustable Rate Mortgage (ARM) is a mortgage with an interest rate that can change periodically.

The definition for C.A.F.E means?

• Caffeine and Farmers Engagement
• Coffee and Fair Exchange
• Corporate Average Fuel Economy

• Coffee and Agricultural Fairness

What is a Budget Surplus?

• A Budget Surplus is when expenditures exceed income.
• A Budget Surplus is when income equals expenditures.
• A Budget Surplus is a type of tax increase.
• A Budget Surplus is when income exceeds expenditures.

What is a budget deficit?

• A budget deficit is a surplus of funds available for spending.
• A budget deficit occurs when revenues exceed expenses.
• A budget deficit is the financial situation where expenses surpass revenues.
• A budget deficit refers to the total amount of savings in a budget.

The unit price means the cost per unit

• True

• False

The Patient Protection & Affordable Care Act are

• A comprehensive healthcare reform law enacted in March 2010.
• An international treaty on healthcare standards.
• A tax reform law passed in 2012.
• A healthcare law focused solely on mental health services.