1. which event will have the greatest impact (positive or negative) on one's net worth after one month?
a: buy a used car at market value for $15,000
b: none of these events will impact the net worth of an individual
c: buy a new car at market value for $15,000. car depreciates 20% upon transfer of ownership.
d: lease a $15,000 car on a 3 year lease. the monthly payment is $199 and all lease payments are required in the lease.
2. if a home mortgage has a term of 15 years and a payment of $1,000, what is the loan amount? (assume that there are no interest-free mortgages)
a: $180,000
b: less than $180,000
c: $200,000
d: $360,000
3. if a home buyer puts 20% down on a $200,000 house and uses a mortgage to borrow the rest, how much will the mortgage be (excluding any closing costs)?
a: $160,000
b: $200,000
c: $240,000
d: $180,000
4. which of the following will increase your net worth the most?
a: sell a bike valued at $75 for $75 cash
b: none of these increase net worth
c: purchase a used car valued at $7,000 with an auto loan for $7,000
d: all of these increase net worth
e: purchase of house valued at $150,000 with $25,000 down and a mortgage of $125,000
5. sub-prime lending rates are 1) than prime lending rates and are for people with credit.
a: 1) lower 2) poor
b: 1) lower 2) good
c: 2) higher 2) good
d: 1) higher 2) poor
6. which loan type isn't secured with collateral?
a: all of the answers are correct
b: mortgages (home loans)
c: none of the answers are correct
d: small business loans
e: subsidized student loans
f: auto loans