WorksheetsMajor Purchases - Take Home - S25
Total questions: 80
Worksheet time: 40mins
Name
Class
Date
1.
If you have a one-year lease and don't give 30 day notice to your landlord, what happens at the end of the year:
a)
You forfeit your security deposit
b)
The lease rolls over for another year
c)
The landlord can evict you
d)
None of these
2.
If you are breaching the lease in some way other than not paying rent, before evicting you your landlord has to give you notice and ___ days to stop breaching.
a)
3
b)
14
c)
30
d)
None of these - unfortunatley, landlords don't have to give notice before evicting you
3.
If you are late paying rent, before evicting you your landlord has to give you notice and ___ to pay all past-due rent.
a)
3
b)
14
c)
30
d)
None of these - unfortunatley, landlords don't have to give notice before evicting you
4.
What happens if you tell your landlord that they can keep your secuirty deposit and apply it to the last month's rent?
a)
You forfeit your security deposit
b)
The lease rolls over for another year
c)
The landlord can evict you
d)
None of these
5.
What happens if you stop paying rent because your aparment is not in "liveable condition"?
a)
You forfeit your security deposit
b)
The lease rolls over for another year
c)
The landlord can evict you
d)
None of these
6.
What happens if you are late paying rent, and your landlord gives you a 3-day notice letter, but you don't pay rent in those three days?
a)
You forfeit your security deposit
b)
The lease rolls over for another year
c)
The landlord can evict you
d)
None of these
7.
Which of these does NOT build equity in your house?
a)
RIP
b)
Interest Expense
c)
Appreciation
8.
If you get a hospital bill for $1,000, have a $100 deductible and a 30% co-pay, your share of the bill will be $_____ .
a)
$1,000
b)
$100
c)
$300
d)
None of these
9.
True or False. Low prices on produce usually mean lower quality.
a)
True
b)
False
10.
Which of these are ways that your landlord can evict you, if you don't pay your rent:
a)
Get a court order
b)
Turn off the electric
c)
Turn off the water
d)
Change the locks on the doors
e)
Write you a letter telling you to leave
11.
Which FOUR of these can landlords use to "discriminate" against you:
a)
Criminal History
b)
Credit Score
c)
Income
d)
Net Worth
e)
Race
12.
If you have a mortgage with a 6% APR, and market interest rates fall so that you can get a 3% APR, you can _______ to lower your monthly payments.
a)
Refinance
b)
Get a PMI
c)
Take out a second morgtage
d)
All of these
e)
None of these
13.
If the FMV of your house is more than what you owe on your mortgage, you can _______ if you need money to make improvements on the house.
a)
Refinance
b)
Get a PMI
c)
Take out a second morgtage
d)
All of these
e)
None of these
14.
If you don't pay at least 20% down for your house, lenders will make you ______ .
a)
Refinance
b)
Get a PMI
c)
Take out a second morgtage
d)
All of these
e)
None of these
15.
When you own a house, which of these are payments that you will make, but do NOT lower your net worth:
a)
Reduction in Principal (RIP)
b)
Interest expense
c)
Real estate taxes
d)
Homeowner's insurance
e)
Maintenance expense
16.
When you rent an apartment, which of these are payments that you will make, and they DO lower your net worth:
a)
Rent
b)
Reduction in Principal (RIP)
c)
Interest expense
d)
Real estate taxes
e)
Homeowner's insurance
17.
If you buy a house for $200,000, pay $40,000 downpayment, and after making $1000 montly payments for 3 years the house is worth $250,000 and you owe $100,000, your equity in the house is $ _____ thousand.
a)
0
b)
150
c)
200
d)
800
e)
None of these
18.
If you buy a house for $200,000, pay $40,000 downpayment, and have a mortgage with 6% APR, $ _____ of your first $1,000 monthly mortgage payment will go to interest expense.
a)
0
b)
150
c)
200
d)
800
e)
None of these
19.
If you buy a house for $200,000, pay $40,000 downpayment, and have a mortgage with 6% APR, $ _____ of your first $1,000 monthly mortgage payment will go toward paying PMI.
a)
0
b)
150
c)
200
d)
800
e)
None of these
20.
For most people, they should not buy a house unless:
a)
They can pay at least 20% down
b)
They plan to live in the house for at least ten years
c)
The mortgage payments and other housing expenses won't be more than 30% of their net income
d)
All of these
e)
None of these - YOLO
21.
On a homeowner's policy, if you have a high deductible, your premiums will normally be ____.
a)
higher
b)
lower
c)
the same
22.
On a homeowner's policy, if you have a low deductible, your premiums will normally be ____.
a)
higher
b)
lower
c)
the same
23.
Normally, the biggest expense of owning a car is _____.
a)
Depreciation
b)
Interest expense
c)
RIP
d)
Fuel
e)
Maintencance
24.
When you own a car, the only payment that does not lower your net worth is _____.
a)
RIP
b)
Depreciation
c)
Interest expense
d)
Fuel
e)
Maintencance
25.
The best way to avoid being upside down on your car is:
a)
Make the Term as short as possible
b)
Always buy used cars
c)
Always buy new cars
d)
Always pay your taxes
e)
Make a small downpayment
26.
If you don't make your mortgage payent, the lender can ____
a)
foreclose
b)
repossess
c)
any of these
d)
evict
e)
none of these
27.
Which of these will hurt your ability to borrow money in the future:
a)
foreclose
b)
repossess
c)
any of these
d)
evict
e)
none of these
28.
If your don't pay your rent, your landlord will ___ you.
a)
foreclose
b)
repossess
c)
any of these
d)
evict
e)
none of these
29.
If you don't pay your car payment, the lender will ____ .
a)
foreclose
b)
repossess
c)
any of these
d)
evict
e)
none of these
30.
If your only debt is a car loan, it should be __ % or less of your annual income.
a)
10
b)
20
c)
30
d)
100
31.
If your only debt is a car loan, your monthly payment should be __ % or less of your monthly income.
a)
10
b)
20
c)
30
d)
100
32.
If you rent an apartment, your monthly rent should be __ % or less of your monthly income.
a)
10
b)
20
c)
30
d)
100
33.
If you own a house, your monthly mortgage payment should be __ % or less of your monthly income.
a)
10
b)
20
c)
30
d)
100
34.
When you buy a car from a dealership you should :
a)
Never get the car loan from the dealership
b)
Always get the car loan from the dealership
c)
Find out what interest rate you would pay at the dealership, a bank, and a credit union, and then pick the best option
d)
Always get the longest term possible, so your monthly payments will be low
35.
When you borrow money from a credit union instead of a bank, the interest rate is usually _____ , because they don't have to pay dividends or income taxes.
a)
higher
b)
lower
c)
the same
36.
When you deposit money in a savings account at a credit union instead of a bank, the interest rate is usually ______, because they don't have to pay dividends or income taxes.
a)
higher
b)
lower
c)
the same
37.
If you buy life insurance, the amount that you pay is called _____ .
a)
Premiums
b)
Death Benefits
c)
Your income
d)
Rent
e)
Beneficiaries
38.
If you buy life insurance, the amount the insurance company pays when you die is called :
a)
Death Benefits
b)
Premiums
c)
Your income
d)
Rent
e)
Beneficiaries
39.
If you are like most people, you should only buy life insurance if someone is counting on you for :
a)
Your income
b)
Premiums
c)
Death Benefits
d)
Rent
e)
Beneficiaries
40.
Buying term insurance instead of buying whole life insurance is like paying ____, instead of buying a house.
a)
Rent
b)
Premiums
c)
Death Benefits
d)
Your income
e)
Beneficiaries
41.
If you die, the death benefits will go to your _____.
a)
Beneficiaries
b)
Premiums
c)
Death Benefits
d)
Your income
e)
Rent
42.
To build a ____ , you have to buy whole life insurance instead of term insurance.
a)
Cash Surrender Value
b)
Premiums
c)
Death Benefits
d)
Your income
e)
Rent
43.
Life insurance is one of the few investments where you can make money without paying _____ .
a)
Income taxes
b)
Premiums
c)
Death Benefits
d)
Your income
e)
Rent
44.
Which of these reduce the income taxes that you have to pay:
a)
Interest expense on your mortgage
b)
Health insurance premiums
c)
Death benefits
d)
Reduction in Principal of your mortgage
e)
Homeowner's insurance premiums
45.
Insurance companies negotiate lower rates for doctors that are ______ .
a)
In Network
b)
Out of Network
c)
Deductibles
d)
Copays
46.
You will probably pay more if you go to doctors that are ______ .
a)
In Network
b)
Out of Network
c)
Deductibles
d)
Copays
47.
_____ are subtracted from your medical bills before your insurance company pays anything.
a)
In Network
b)
Out of Network
c)
Deductibles
d)
Copays
48.
With _____, you pay a percentage of the medical bill, and your insurance company pays the rest.
a)
In Network
b)
Out of Network
c)
Deductibles
d)
Copays
49.
If your apartment is furnished, how much can your landlard charge you for a security deposit ?
a)
Not more than your monthly rent,
b)
Not more than 1.5 times your monthly rent,
c)
Not more than 1/2 your monthly rent,
d)
They can charge you whatever they want to
50.
If your apartment is not in good condition, you should:
a)
Stop paying rent
b)
Contact your local housing authority
c)
Neither of these
d)
Both of these
51.
In some circumstances, your landlord is allowed to evict you without getting a court order.
a)
Yes
b)
No
c)
Maybe
52.
If you don't pay your rent, your landlord can try to evict you:
a)
by shutting off the utilities
b)
by changing the locks
c)
either of these
d)
neither of these
53.
Who can give a 30-day notice to end the lease at the end of the lease term:
a)
The landlord
b)
The tenant
c)
Either of these
d)
Neither of these
54.
Which of these are reasons why younger people need to invest more for retirement than older generations had to:
a)
Pensions are no longer common
b)
Social security benefits are not increasing
c)
Both of these
d)
Neither of these
55.
How much money should you put toward your home's downpayment?
a)
Your entire emergency fund
b)
3 times your monthly expenses
c)
20% of the price of the home
d)
5 years' worth of payments
56.
How is it possible that someone could pay their mortgage monthly for years without reducing their principal by very much?
a)
The real estate market changed substantially since they took out the mortgage
b)
The house's value increased so much that it's worth more than they agreed to pay
c)
In early years, most of the payments go toward interest
d)
Any of these can cause this
57.
Bad news, like COVID 19 or political uncertainty generally cause interest rates to:
a)
Go up
b)
Go down
c)
Stay the same
58.
Which FICO factor does the amount of your downpayment impact:
a)
Payment history
b)
Debt-to-equity ratio
c)
Type of credit
d)
Length of credit history
e)
Hard pulls
59.
What does APR stand for?
a)
Annual Percentage Rate
b)
Abbreviation for the month of April
c)
Annual Payment Revenue
d)
Actual Percentage Ramp
60.
What are adjustable-rate mortgages based on?
a)
How long you've had a fixed-rate for
b)
Your credit score
c)
Current interest rates in the economy's index
61.
What is an amortization schedule?
a)
A breakdown of how much you are paying between interest and principal amounts
b)
A calendar schedule of times when you can pay your mortgage
c)
An overview of all utility payments
62.
Which of the following statements is true?
a)
You start off paying more toward your principal, then as time goes on, more of your payment goes toward interest.
b)
You start off paying more toward interest, then as time goes on, more of your payment goes toward the principal amount.
c)
You consistently pay the same amount in both interest and principal the entire mortgage term.
d)
A high amount of your beginning payments go toward interest and the interest amount gets progressively higher as you continue to make payments.
63.
When you see MSRP for a car, what does it stand for?
a)
meeting sales rep price
b)
manifesting slightly reduced price
c)
moving swiftly reduces price
d)
manufacturer's suggested retail price
e)
manufacturer's sales required price
64.
Which of these statements about MSRP is NOT true:
a)
Car dealers are required to charge the MSRP - that is what the "R" stands for.
b)
The MSRP is just a suggestion that is what the "S" stands for.
c)
The price you pay can be much lower than the MSRP.
65.
Which of the following is a fact about MSRP?
a)
MSRP is a set price that won't change
b)
MSRP is set by the buyer
c)
MSRP is only a suggested price
d)
MSRP is the total you will pay for the car
66.
How will you decide how much you can afford for a car?
a)
If the monthly car payment will put you over the 10% rule
b)
If the amount of the car loan will put you over the 20% rule
c)
Both of these
d)
Neither of these - YOLO !
67.
Which of these are true statements about buying a car:
a)
Most people pay a downpayment with cash
b)
Most people borrow some of the purchase price
c)
Both of these
d)
Neither of these
68.
Time to play Two Truths and a Lie! Select the lie from the statements below.
a)
After you have made your final auto loan payment, you own the car
b)
After you have made your final monthly lease payment, you return the car
c)
After you have made your final monthly lease payment, you own the car
69.
Cars lose value:
a)
At a flat rate - about the same change in value each year that you own the car
b)
At a decreasing rate - the value drops fastest at the beggining and then slows down in later years
c)
At an increasing rate - the value drops slowest at the beggining and then speeds up in later years
d)
None of these - cars don't lose value
70.
What is the financial term used to describe the decrease in value of assets that you own?
a)
Depreciation
b)
Upside Down
c)
Appreciation
d)
Rightside Up
71.
What is the financial term used when you owe more on your car than it is worth?
a)
Depreciation
b)
Upside Down
c)
Appreciation
d)
Rightside Up
72.
Who pays for PMI:
a)
The borrower
b)
The lender
c)
Neither of these
d)
Both of these
73.
Who benefits from PMI:
a)
The borrower
b)
The lender
c)
Neither of these
d)
Both of these
74.
Which of these impact the APR that you will pay on a mortgage:
a)
Your credit score
b)
The size of your downpayment
c)
Both of these
d)
Neither of these
75.
Which of these FICO factors will the amount of your downpayment impact:
a)
Your payment history
b)
Your debt-to-credit ratio
c)
Both of these
d)
Neither of these
76.
Which of these do car ads NOT try to convince us of:
a)
If we buy a new car, our family will love us more
b)
If we buy a new car, our freedom to go anywhere is secure
c)
If we buy a new car, we may be hurting our financial future
77.
Which of these are reasons why buying a car is a threat to your financial future:
a)
You have to pay interest on the car loan
b)
You have to pay money to maintain the car
c)
The value of the car goes depreciates
d)
None of these
e)
All of these
78.
Which sentence best describes depreciation?
a)
Depreciation is the reduction in the value of an asset over time.
b)
Depreciation is a general increase in prices and fall in the purchasing value of money.
c)
Depreciation is the accumulation of wealth over time.
d)
Depreciation is a debt or financial obligation.
79.
What kind of investment are you making when you buy a car:
a)
Buying an asset that will earn money for you by going up in value.
b)
Buying an asset that will earn money for you by generating income.
c)
Buying a car isn't an investment because it won't earn money for you.
80.
When you buy a car, which of this is NOT a good guideline that you should follow:
a)
Buy a car that is at least 5 years old
b)
If possible, don't borrow money to buy the car
c)
Make sure that your monthly car payments will be about 20 % of your montly income.
d)
Before buying your car, the amount you save each month should be at least as much as your monthly car payments will be after you buy your car
100 %
