CYAF 222 Final Exam Questions with Verified
Correct Answers
Earnest money is the sum of money the home buyer pays to
hold the house while negotiating.
Before searching for a house to buy, you should
prequalify for a mortgage.
adjust your budget accordingly.
obtain a copy of your credit report.
All of these
Property taxes are based on the ____ of the house.
Assessed Value
The tax deductible expenses related to home ownership are
Mortgage interest and property taxes
The PITI acronym in mortgage lending stands for
Principal, Interest, Taxes, Insurance
Lenders in the sub-prime market offer loans
to higher-risk applicants
,The typical required loan-to-value ratio today is no more than
80 percent
The type of mortgage where the interest rate can fluctuate up and down according to an
index of interest rates is the ____ mortgage.
Adjustable Rate
The dollar value of the home in excess of the outstanding mortgage debt is called
homeowner's equit
Mortgage lenders charge interest rates based on your
credit score
Owning a big-screen TV is called a(n) ____, while the potential theft of that TV is called
a(n) ____.
Exposure; peril
The primary difference between a speculative risk and a pure risk is that there is a chance
for ____ in a speculative risk but a chance for ____ in a pure risk.
gain and loss; only loss
An insurance rate
All of these
Recommended limits for auto liability insurance are at least
250/500/100
, Which of the following types of insurance can be purchased only through a federal
government program?
Flood insurance
Homeowner's insurance includes
both property covereage and liability coverage
The reduction of risk that occurs with purchasing insurance is primarily due to the
Law of large numbers
The financial product used for transferring and reducing risk by having a large number of
people share in the financial losses suffered by members of the group is called
Insurance
Individuals who enter into, change, and cancel insurance policies on behalf of an insurance
company that they represent are referred to as insurance
Agents
Your collision coverage generally protects you when you drive
All of these
Under the Affordable Care Act, your level of income used to calculate the maximum tax
penalty if you do not have a health care plan is your
Modified adjusted gross income
Correct Answers
Earnest money is the sum of money the home buyer pays to
hold the house while negotiating.
Before searching for a house to buy, you should
prequalify for a mortgage.
adjust your budget accordingly.
obtain a copy of your credit report.
All of these
Property taxes are based on the ____ of the house.
Assessed Value
The tax deductible expenses related to home ownership are
Mortgage interest and property taxes
The PITI acronym in mortgage lending stands for
Principal, Interest, Taxes, Insurance
Lenders in the sub-prime market offer loans
to higher-risk applicants
,The typical required loan-to-value ratio today is no more than
80 percent
The type of mortgage where the interest rate can fluctuate up and down according to an
index of interest rates is the ____ mortgage.
Adjustable Rate
The dollar value of the home in excess of the outstanding mortgage debt is called
homeowner's equit
Mortgage lenders charge interest rates based on your
credit score
Owning a big-screen TV is called a(n) ____, while the potential theft of that TV is called
a(n) ____.
Exposure; peril
The primary difference between a speculative risk and a pure risk is that there is a chance
for ____ in a speculative risk but a chance for ____ in a pure risk.
gain and loss; only loss
An insurance rate
All of these
Recommended limits for auto liability insurance are at least
250/500/100
, Which of the following types of insurance can be purchased only through a federal
government program?
Flood insurance
Homeowner's insurance includes
both property covereage and liability coverage
The reduction of risk that occurs with purchasing insurance is primarily due to the
Law of large numbers
The financial product used for transferring and reducing risk by having a large number of
people share in the financial losses suffered by members of the group is called
Insurance
Individuals who enter into, change, and cancel insurance policies on behalf of an insurance
company that they represent are referred to as insurance
Agents
Your collision coverage generally protects you when you drive
All of these
Under the Affordable Care Act, your level of income used to calculate the maximum tax
penalty if you do not have a health care plan is your
Modified adjusted gross income
