Quizzes Flashcards
Select all of the following that are benefits of home ownership.
A. Occupant has minimal home maintenance worries.
B. The owner keeps any price appreciation.
C. Minimal initial savings are needed to move in.
B
A debt instrument secured by the collateral of the specified real estate property, verifying that the borrower is obliged to pay back a specific amount with a predetermined set of payments is called a…
mortgage
If you bought a $250,000 home, have $150,000 left to pay on it, and it’s appraised for $300,000, then what is your equity?
150,000
______________________ is when you replace your existing mortgage by obtaining a new mortgage and repaying the old one.
refinancing your mortgage
A vehicle history report is wise to obtain when buying a used car. This report gives details about what? (Select all that apply.)
A. the car’s accident history
B. the police report on any reportable incident pertaining to the car
C. the name and address of the previous owner
D. the car’s ownership history
A and D
(T or F) Leasing is renting the use of a vehicle for a fixed period for an agreed-upon amount of money.
True
Select all of the following that are important to know when you are considering buying a car.
A. Potential trade-in value of your current vehicle
B. Quotes on prices of insurance and insurance requirements for the vehicles you’re considering
C. Market values and operating costs on various models and age of the kind of vehicle that meets your needs
D. Cost to manufacture the make & model of the car
E. Credit score of the previous owner
A, B, C
financial commitments that will be difficult or expensive to change but must be included in your budget
fixed cost
Financial commitments that generally change each period
variable costs
Any spending that is optional or avoidable
discretionary costs
costs that are unavoidable to incur
mandatory costs
Which of the following is a good way to handle a “money squeeze”?
A. Be sure to use coupons when doing your weekly shopping for your growing wardrobe
B. Sell unneeded assets
C. Maintain current spending levels (but no more!)
D. Increase contributions to your 401(k) account
B
Spending when I dont have a plan
impulse spending
Spending on something just because that is what I have always done
habit spending
Spending because I am not able to not spend
addictive spending
Which of the following represents the progression of a stepwise spending reduction when it comes to eating out?
A. Step down from restaurant to home-cooked meals to fast food
B. Step down from fast food to sit down restaurants to grilling at home
C. Step down from restaurant to fast food to prepared food to making meals from scratch
C
(T or F) A decision map is key to small decisions like where to fill up with gas or which burger to purchase at a restaurant.
False
There are very few modern software or mobile apps to help with personal budgeting.
false
Because as Christians we are generous people, we should not include a category for “gifts” in our budget since that would tend to limit our generosity.
false
Which are common additional costs of owning an automobile?
A. maintenance, such as oil changes & tire rotations
B. auto insurance
C. fuel / gas
D. All of the above
D
When buying a home, a closing statement is the same as…
HUD-1
(short term or long term) savings account at a branch of a local federal credit union
short term
The expectation that if you put your money into savings/investments, that money will grow over time even if you don’t add anything to it
ROI
3 factors influencing the future value of your investments
principal, length of time, interest rates
name at least one way to mitigate the risk due to market volatility
diversity portfolio
