Economics Chapter 5

Question 1

fees involved in arranging for a mortgage or in transferring ownership of property

Answer 1

closing costs

Question 2

apartment whose owner owns equal shares in the company that owns the building and the land on which it stands

Answer 2

cooperative

Question 3

amount of money invested in a property minus the debt

Answer 3

equity

Question 4

long-term agreement describing the terms under which property is rented

Answer 4

lease

Question 5

fee paid to a lender and computed as percentage points of a loan

Answer 5

points

Question 6

taxes paid on land and buildings

Answer 6

real estate taxes

Question 7

insurance that pays for bodily injury and property damage

Answer 7

liability insurance

Question 8

tax on the sale or use within a country of specific products

Answer 8

excise taxes

Question 9

decline in value over time

Answer 9

depreciate

Question 10

separately owned single unit in an apartment complex or series of townhouses

Answer 10

condominium

Question 11

money a renter lets the owner hold; if the rent is not paid or an apartment is damaged , the owners keep all or part of the deposit

Answer 11

security deposit

Question 12

licensing fee, usually annual, paid to a state for the right to use a car

Answer 12

registration fee