Fin 008 - Personal Finance and Investments » Winter 2021 » Quiz 3

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Question #1
If you miss payments and default on your mortgage, the lender can do all the following EXCEPT
A.   evict you.
B.   have you arrested.
C.   sell or lease your home.
D.   foreclose on your property.
E.   take possession of your home.
Question #2
Credit cards have all the following benefits EXCEPT
A.   convenience.
B.   reliance on cash.
C.   low transaction costs.
D.   universal acceptance.
E.   security.
Question #3
The costs of operating a car include all the following EXCEPT
A.   fuel.
B.   price.
C.   property taxes.
D.   insurance and registration.
E.   maintenance and repair.
Question #4
Buyers should use a home inspection checklist when buying a home.
A.   FALSE
B.   TRUE
Question #5
When you identify the product you want to buy, you should first identify
A.   the availability of the product.
B.   your opportunity cost.
C.   what attributes are most important.
D.   the cheapest alternative.
E.   what need the product will satisfy.
Question #6
With an ARM (adjustable rate mortgage), if interest rates change,
A.   a rate cap is applied.
B.   a payment cap is applied.
C.   the amount of your payment stays the same.
D.   you risk negative amortization.
E.   the amount of your payment changes.
Question #7
If you get into trouble with debt you should first
A.   sell an asset or borrow to pay off the loan.
B.   let lenders repossess your financed asset.
C.   file for bankruptcy.
D.   inform lenders and get debt counseling.
E.   refinance the loan.
Question #8
An alternative to a promise of "satisfaction guaranteed" on a product is
A.   a class-action suit.
B.   consumer protection.
C.   a warranty.
D.   caveat emptor.
E.   small claims court.
Question #9
After understanding what you need in a home, the next step is to determine how much house you can afford.
A.   FALSE
B.   TRUE
Question #10
Diversifying your savings in a series of instruments with different maturities is a strategy known as
A.   reinvesting.
B.   direct deposit.
C.   segregated savings.
D.   laddering.
E.   time deposit.

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