Science of Investing 1

Question 1

Automobile leasing is actually just a long-term rental agreement with the lessor.

Answer 1

True

Question 2

Open-end leases are leases in which you return the vehicle at the end of the lease and you have no further responsibilities.

Answer 2

False

Question 3

Subprime mortgages are mortgages taken out by people with low credit scores.

Answer 3

TRUE

Question 4

One of the main barriers to home ownership is the down payment.

Answer 4

TRUE

Question 5

Defaulting on a secured loan may lead to the collateral being repossessed.

Answer 5

TRUE

Question 6

A payday loan is a reasonable option if you need a luxury item like a big screen TV.

Answer 6

FALSE

Question 7

For many U.S. consumers, a good school district is an important consideration when purchasing a home.

Answer 7

TRUE

Question 8

A down payment is the initial buyer’s equity in the asset being purchased.

Answer 8

TRUE

Question 9

An appraisal is an estimate of what your home and property are worth.

Answer 9

TRUE

Question 10

A fixed-rate mortgage is harder to budget for than an adjustable mortgage.

Answer 10

FALSE