Financial Literacy U5 Quiz

What is the main purpose of a car loan?

• to borrow money to buy a vehicle

• to pay for vehicle maintenance an repair

What is important to think about when buying a car? (CHOOSE 3)

• resale value

• financing rate

• special vehicle features and personal preferences

• only shop at one dealer

When you buy a car, which affects your interest rate the most?

• car color

• car type

• your credit score

• your age

Janet is looking for a new apartment. Her monthly rent payment is equal to $1,000 and her annual rental insurance premium is $250. The value of her apartment is $150,000. What are her total annual costs associated with renting?

Mathematical Equivalence

ON

What do you need before you buy a house?

• down payment

• insurance

• a mortgage

When you want to buy a house, what should you evaluate? (CHOOSE 3)

• house insurance

• house location

• property taxes

• cosmetic flaws

Over the life of a mortgage, the payment to principal ​ (a)   and the portion to interest expense ​ (b)   .

• increases
• decreases

What does "fixed-rate mortgage" mean?

• The interest rate stays the same throughout the loan term.

• The lender can adjust the rate at any time.

If you do not complete your education, you will not have to pay back your student loans.

• TRUE

• FALSE

In the U.S., who is primarily responsible for financing a college education?

• students and their caregivers

• the federal government.

• financial institutions.