Test Review (Renting an Apt., Car Purchase, Shopping)

A

10

What are the two main options to acquiring a vehicle?

Buying (purchasing) and Leasing

20

What percentage of resale value does a new car lose within the first two years?

30 percent

30

Money that the renter deposits with the owner of the property in case they damage the property?

SECURITY DEPOSIT

40

Car insurance is based on the vehicle being insured and your driving record.  What are two types of car insurance coverage and what do they cover?

Liability - covers the cost of any damages you cause to other drivers

Collision - pays to fix damages to your car if the accident is your fault

Comprehensive - covers theft, vandalism, fire, broken windows/glass, etc.

Uninsured/Underinsured - covers you if the at-fault driver does not have coverage or has coverage that has low limits

50

Name three things that are included in a rental agreement?

• the amount of rent to be paid each month

• when and whom the rent will be paid to

• the length of the rental agreement

• who pays for electricity and water

• when and how you need to give notice if you decide to move

• the repair policy

• what appliances/amenities come with the apartment

• whether pets allowed on the property

B

10

If you purchase a vehicle what are two ways to do so?

Pay Cash

or

Get a Loan

20

The person that rents a room, apartment, condo, or a home?

TENANT

30

What is the recommended down payment to prevent you from going “upside down” on the loan?

20% down payment

40

A legal contract where you can be held to all the conditions listed in the agreement once you sign it?

RENTAL AGREEMENT

or 

LEASE

50

When it is time to look for a place of your own, it will be important to think about these three things before selecting a place?

1) how much rent you can afford to pay

2) the location of the place

3) the type of place you need

C

10

The amount of money that a policyholder must pay out of pocket before their insurance coverage kicks in to pay for claims?

DEDUCTIBLE

20

In order to make sure you can afford a place, financial experts recommended that the amount of rent (and other housing expenses) you pay should not be more than how much of your gross pay?

30 percent

30

What is the difference between a "need" and a "want" in reference to shopping?

NEED = something you have to have to live

WANT = something that doesn’t necessarily benefit your everyday well-being

40

This agency protects us from:

• unsafe food

• unsafe medicines

• unsafe cosmetics

Food & Drug Administration (FDA)

50

What are the four factors that determine your monthly car payment?

Amount Borrowed

Length of the Loan Term

The APR of the loan (interest rate)

Credit Score

D

10

The interest rate on car purchases is typically higher on these?

Used Cars

20

The person or company that owns property and rents it to a person(s)?

LANDLORD

30

What are three examples of ongoing costs when you purchase a vehicle?

Annual Fees - annual tag renewal, vehicle inspection, etc.

Personal Property Tax - tax owed for every year you own or lease a vehicle

Routine Scheduled Maintenance- includes, oil changes, tire replacement, and other scheduled maintenance

Unscheduled Maintenance - parts wear out and break

40

Is renters insurance required?  What are the two basic types of renters insurance?

Liability - Covers you in case someone is injured in your rented space or if you accidentally damage someone else's property. 

Contents - this covers your belongings

50

What are 3 things lenders look for when you are looking for a loan?

Steady income

Established residence

Established employment

Credit history (Higher the credit score better your rate)

E

10

Someone that purchases goods and services to use regularly?

A Consumer

20

If you lease a vehicle what is something that would cause you to pay a penalty as stipulated in the lease agreement?

If you exceed mileage limitations

30

A formal contract between the insurer (the insurance company) and the insured (the policyholder)? It outlines the terms and conditions of the coverage provided.

INSURANCE POLICY

40

What are 3 benefits to leasing a car?

• Lower monthly payments (typically)
• Driving a new car every few years (most leases are 24-36 months)
• Warranty coverage for most repairs
• Easier to upgrade to newer models
• No long-term commitment
• Option to purchase at the end of the lease

50

What Are The Four Key Buying Strategies Used By Wise Consumers?

1. Plan your purchases in advance (Identify the need vs want).

2.  Do research.

3.  Comparison shop.

4.  Waiting for sales or discounts.