Econ Chapter 5.3 & 5.4

Question 1

The section of the rental lease allowing a landlord to cancel because of renter behavior is known as

Accepted Answer

arbitrary clause

Question 2

funds a renter lets an owner hold in case rent is not paid or apartment is damaged

Accepted Answer

security deposit

Question 3

Which of the following describes an advantage of renting over owning?

Accepted Answer

greater mobility

Question 4

When interest rates rise, lenders sometimes

Accepted Answer

waive points

Question 5

At what rate do cars generally depreciate per year?

Accepted Answer

20 % each year

Question 6

Buying a new car usually costs less in repairs over the first few years.

Accepted Answer

True

Question 7

decline in value over time

Accepted Answer

depreciation

Question 8

Which group of people usually pays the highest insurance rates?

Accepted Answer

young people

Question 9

market value of a property minus the mortgage amount still owed

Accepted Answer

equity

Question 10

protects car owner for all major repairs and damage caused by improper use of vehicle

Accepted Answer

new-car warranty

Question 11

Normal maintenance on a car includes

Accepted Answer

oil and filter changes and minor tune-ups

Question 12

licensing fee, usually annual, paid to a state for the right to use a car

Accepted Answer

registration fee

Question 13

Buying an extended warranty is a way of guarding against cost of major automobile repairs.

Accepted Answer

True

Question 14

down payment, monthly payment on principal, and interest

Accepted Answer

costs of a car loan

Question 15

long-term agreement describing the terms under which property is rented

Accepted Answer

lease

Question 16

monthly mortgage payments should be no more than

Accepted Answer

1/3 of monthly take-home pay

Question 17

insurance that pays for bodily injury and property damage

Accepted Answer

liability insurance

Question 18

Which of the following describes an advantage of owning over renting.

Accepted Answer

significant tax benefits

Question 19

fees involved in arranging for a mortgage or transferring ownership of property

Accepted Answer

closing costs

Question 20

fees paid to a lender and computed as a percentage of the loan

Accepted Answer

points

Questions 20