Personal Finance Exam Review 8 Question Preview (ID: 42417)


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A detailed list of current property conditions is called a(n)
a) rental agreement.
b) lease.
c) rental inventory.
d) eviction notice.

Which of the following would generally be considered an advantage of renting?
a) lack of privacy
b) minimum responsibilities
c) small living space
d) lack of storage space

In a typical roommate arrangement, all of the following expenses would be shared equally by all of the roommates except
a) rent.
b) groceries.
c) utilities.
d) long-distance phone calls.

Most financial experts advise allotting ___ percent of your total budget for houseing.
a) 10 to 15
b) 20 to 25
c) 2 5 to 35
d) at least 50

Which of the following is probably NOT a question you need to ask of a prospective roommate?
a) What is your birthday?
b) What do you like to do for fun?
c) Do you have a job?
d) Are you a smoker?

The monthly charge you pay to live in an apartment is called
a) a security deposit.
b) a mortgage.
c) a lease.
d) rent.

Which of the following consists of four bedrooms connected to a single kitchen that is shared by the occupants?
a) townhouse
b) condo
c) quad
d) studio

An on-campus building that contains many small rooms that are rented out to students is called a
a) duplex.
b) dormitory.
c) hostel.
d) condominium.

Which type of college does not provide any on-campus housing options?
a) residential campus
b) community college
c) commuter campus
d) state college

Which of the following is an obligation of the lessor?
a) provide a dwelling that is habitable
b) give at least 30-days' notice of intent to move
c) pay the rent on or before the due date
d) all of the above are obligations of the lessor

For purposes of computing property taxes owed against your home, the city or county in which you live sets a(n) ____ value on the property.
a) assessed
b) market
c) estimated
d) appraised

Janice and Steve bought a home five years ago for $130,000. Today, the home is worth $150,000. Which of the following statements is correct?
a) Janice and Steve have $20,000 equity in their home.
b) The market value of Janice and Steve's home is $20,000.
c) Janice and Steve's property has appreciated by $20,000.
d) The appraised value of Janice and Steve's home is $20,000.

Because certain tax deductions lower the cost of home ownership, owning real estate is sometimes called a
a) tax penalty.
b) tax loophole.
c) tax shelter.
d) tax avoidance scheme.

A fund where money is held to pay amounts that will come due during the year---such as property taxes and property insurance--is called a(n)
a) trust deed.
b) escrow account.
c) money market account.
d) mortgage.

Mortgage lenders usually offer lower interest rates in exchange for higher discount points. Whether or not this is a good deal depends mostly on
a) the sales price of the house.
b) the amount of your down payment.
c) the amount of equity you have in the house.
d) how long you plan to keep your house.

Real estate agents earn income based on a percentage of the home sale price, usually between ____ percent.
a) 1 to 3
b) 3 to 5
c) 5 to 7
d) 7 to 10

A serious intent to be bound to an agreement is a(n)
a) acceptance.
b) proposal.
c) contingency.
d) offer.

As a general rule, your mortgage payments should not exceed ___ percent of your take-home pay.
a) 10 to 20
b) 25 to 35
c) 30 to 50
d) 50 to 60

Which of the following statements about mortgages is incorrect?
a) The rate for an adjustable-rate mortgage usually starts higher than the current rates for a fixed-rate mortgage.
b) Many adjustable-rate mortgages specify maximum rate increases and ceilings.
c) If you obtain a fixed-rate mortgage at 7 percent today, the rate will still be 7 percent 20 years from now.
d) The rate on ARMs almost always goes up over time.

Legally established ownership of property is a
a) title.
b) tenancy agreement.
c) deed.
d) lien.

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