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

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