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.   sell or lease your home.
B.   take possession of your home.
C.   evict you.
D.   have you arrested.
E.   foreclose on your property.
Question #2
Credit cards have all the following benefits EXCEPT
A.   universal acceptance.
B.   security.
C.   low transaction costs.
D.   reliance on cash.
E.   convenience.
Question #3
The costs of operating a car include all the following EXCEPT
A.   price.
B.   maintenance and repair.
C.   insurance and registration.
D.   property taxes.
E.   fuel.
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.   what need the product will satisfy.
B.   the cheapest alternative.
C.   your opportunity cost.
D.   what attributes are most important.
E.   the availability of the product.
Question #6
With an ARM (adjustable rate mortgage), if interest rates change,
A.   the amount of your payment changes.
B.   a payment cap is applied.
C.   the amount of your payment stays the same.
D.   you risk negative amortization.
E.   a rate cap is applied.
Question #7
If you get into trouble with debt you should first
A.   file for bankruptcy.
B.   let lenders repossess your financed asset.
C.   inform lenders and get debt counseling.
D.   sell an asset or borrow to pay off the loan.
E.   refinance the loan.
Question #8
An alternative to a promise of "satisfaction guaranteed" on a product is
A.   caveat emptor.
B.   consumer protection.
C.   a warranty.
D.   small claims court.
E.   a class-action suit.
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.   direct deposit.
C.   segregated savings.
D.   time deposit.
E.   laddering.

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