0 items
- Description
FP 101 Week 5 Quiz
Complete the Week 5 Quiz provided by your facilitator.
Submit your Week 5 Quiz as a Microsoft® Word®attachment to the Assignment Files tab.
Week 5
- Before taking out a loan, you should ask yourself whether you can meet all your essential expenses and still afford the monthly loan payments. This can be determined by
- Adding up basic monthly expenses then subtracting this total from gross pay
- Asking what you plan to give up to make the monthly loan payment
- Multiplying your take-home pay by 50% and subtracting your current loan payments
- Adding up basic monthly expenses, subtracting this total from take-home pay and, if needed, figuring out what to give up to make the payment
- The text identifies several phases in the buying process. The correct order of the phases is
- Evaluating alternatives, pre-shopping activities, selection and purchase, post-purchase activities
- Pre-shopping activities, selection and purchase, evaluating alternatives, post-purchase activities
- Pre-shopping activities, evaluating alternatives, selection and purchase, post-purchase activities
- Evaluating alternatives, selection and purchase, pre-shopping activities, post-purchase activities
- Information gathering is part of the ________________ phase of the decision-making process.
- Evaluating alternatives
- Pre-shopping activities
- Selection and purchase
- Ordering activities
- The dealer’s cost is also known as
- Invoice price
- Sticker price
- Set price
- Capitalized cost
- A potential problem with having a long car loan is
- Low monthly payments
- Low-interest loan
- Negative equity
- Loan preapproval
- All of the following are fixed operating costs for a vehicle except
- Insurance
- Interest on an auto loan
- License and registration
- Maintenance and repairs
- Which of the following is NOT correct?
- Renting is usually less expensive in the short run.
- Home ownership usually has long-term financial advantages.
- Lifestyle and financial factors should be analyzed to determine if you should rent or buy.
- Traditional financial guidelines suggest that your home should cost about five times your annual income.
- Which of the following is a disadvantage of renting?
- Renters have fewer responsibilities than home owners.
- Tenants cannot take tax deductions for mortgage interest and property tax.
- Renters usually do not have to be concerned with maintenance and repairs.
- Taking possession of a rental unit is less expensive than buying a home.
- What should a home buyer consider when evaluating a house?
- Zoning laws
- School system
- Property values of the community
- All of these should be evaluated.
- Trenton wants to buy a house but can provide only a 10% down payment. He probably will be required to have
- Amortization
- Escrow
- Points
- Private mortgage insurance