Personal Finance Chapters 6 and 7 Flashcards
a fixed operating cost for a vehicle
insurance
when Joe researched the brands and prices of refrigerators, he was
comparison shopping
George has never bought a new car before.
Which of the following techniques should he use to get the best deal?
research the dealer cost and begin negotiations from that point
a variable cost for a vehicle is
maintenance and repairs
What does MSRP stand for?
Manufacturers Suggested Retail Price
written guarantee from a manufacturer specifying conditions under which the product can be returned, replaced, or repaired
warranty
what is an advantage of a car lease?
monthly lease payments are usually lower than monthly financing paynments
a legal document that includes information about the due date of monthly rent is called…
a lease
what should a home buyer consider when evaluating a house?
zoning laws, school system, locations of businesses and future construction
True or Fase. A VA loan is meant for those who have a poor credit score?
False
A real estate agent can do most things except for…
home appraisal
what document transfers ownership of property from one party to another?
deed
when someone buys a house, the mortgage company will usually conduct an…
appraisal
what do you need to have before purchasing a house?
a down payment
True or False. A contingency clause is a provision requiring a specific event or action to occur for the contact to be valid?
True
a security deposit is usually
one month’s rent
types of houses
single-family dwelling, multi-unit dwelling, condo
True or False. A condominium is a type of building
False
Private Mortgage insurance is required when homebuyer makes a down payment of less than this percentage of a home’s price
20%
a disadvantage of renting
tenants cannot take tax deductions for mortgage interest and property taxes
