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

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