WGU D363 Section 2 Asessment Exam
Questions With Correct Answers
Anika |is |trying |to |decide |if |she |should |continue |to |rent |or |if |she |should |buy |a |home. |Her |lease
|is |up |in |four |months. |She |has |$10,000 |saved |so |far |for |a |down |payment |on |a |house. |She |also |
wants |to |be |sure |that |if |she |buys |a |home |she |will |still |be |able |to |have |a |high |enough |cash |
flow |to |continue |to |save.
Which |decision |should |she |make |about |housing |and |for |what |reason?
A) |She |should |rent |until |the |end |of |her |lease |in |order |to |avoid |paying |rent |and |a |mortgage.
B) |She |should |purchase |a |home, |because |she |has |a |large |down |payment |saved.
C) |She |should |continue |to |rent, |because |cash |flow |is |higher |for |renters.
D) |She |should |purchase |a |home, |because |cash |flow |is |higher |for |homeowners.
C) |She |should |continue |to |rent, |because |cash |flow |is |higher |for |renters.
Lucas |is |buying |a |home. |He |found |the |perfect |home |for |$210,000. |He |currently |has |$21,000 |
saved |for |the |down |payment.
What |will |his |mortgage |company |require, |given |the |amount |of |his |down |payment?
A) |Homeowner's |insurance
B) |Mortgage |insurance
C) |A |lower |loan |to |value |(LTV) |ratio
D) |Home |warranty |insurance
B) |Mortgage |insurance
When |Nora |closed |on |her |new |home, |she |was |given |an |amortization |schedule |for |her |
mortgage.
How |can |an |amortization |schedule |help |Nora |with |her |financial |goals?
A) |The |amortization |schedule |will |include |payment |options |for |Nora |to |consider |so |she |can |
pay |off |her |mortgage |earlier |rather |than |later.
, B) |Nora |can |see |when |her |mortgage |payment |is |due |each |month, |so |she |can |plan |that |in |her |
personal |budget.
C) |Nora |will |know |the |dollar |amount |of |every |monthly |payment |for |the |life |of |the |mortgage, |
so |she |can |be |precise |in |her |budgeting.
D) |The |amortization |schedule |provides |Nora |with |all |the |information |from |her |mortgage, |
including |lender, |payment |address, |and |monthly |payment |due.
C) |Nora |will |know |the |dollar |amount |of |every |monthly |payment |for |the |life |of |the |mortgage, |
so |she |can |be |precise |in |her |budgeting.
Why |would |a |buyer |consider |an |adjustable-rate |mortgage |(ARM) |over |a |conventional |
mortgage?
A) |To |take |advantage |of |falling |interest |rates
B) |To |ensure |lower |monthly |payments
C) |To |put |risk |of |variable |rates |on |the |lender
D) |To |pay |off |the |mortgage |faster
A) |To |take |advantage |of |falling |interest |rates
Why |would |a |person |choose |a |higher |deductible |for |a |homeowner's |insurance |policy?
A) |To |reduce |the |insurance |premium
B) |To |lessen |the |risk |of |loss
C) |To |decrease |the |coinsurance |rate
D) |To |reduce |the |dollar |amount |of |a |loss
A) |To |reduce |the |insurance |premium
Ren |is |considering |purchasing |disability |income |insurance, |and |he |is |trying |to |determine |which
|type |of |policy |to |get.
Which |policy |should |Ren |choose |if |he |is |willing |to |pay |more |now |to |ensure |the |greatest |
disability |income |should |he |need |it?
A) |Social |Security |disability |policy
B) |Short-term |disability |policy
C) |Any-occupation |policy
D) |Own-occupation |policy
D) |Own-occupation |policy
Questions With Correct Answers
Anika |is |trying |to |decide |if |she |should |continue |to |rent |or |if |she |should |buy |a |home. |Her |lease
|is |up |in |four |months. |She |has |$10,000 |saved |so |far |for |a |down |payment |on |a |house. |She |also |
wants |to |be |sure |that |if |she |buys |a |home |she |will |still |be |able |to |have |a |high |enough |cash |
flow |to |continue |to |save.
Which |decision |should |she |make |about |housing |and |for |what |reason?
A) |She |should |rent |until |the |end |of |her |lease |in |order |to |avoid |paying |rent |and |a |mortgage.
B) |She |should |purchase |a |home, |because |she |has |a |large |down |payment |saved.
C) |She |should |continue |to |rent, |because |cash |flow |is |higher |for |renters.
D) |She |should |purchase |a |home, |because |cash |flow |is |higher |for |homeowners.
C) |She |should |continue |to |rent, |because |cash |flow |is |higher |for |renters.
Lucas |is |buying |a |home. |He |found |the |perfect |home |for |$210,000. |He |currently |has |$21,000 |
saved |for |the |down |payment.
What |will |his |mortgage |company |require, |given |the |amount |of |his |down |payment?
A) |Homeowner's |insurance
B) |Mortgage |insurance
C) |A |lower |loan |to |value |(LTV) |ratio
D) |Home |warranty |insurance
B) |Mortgage |insurance
When |Nora |closed |on |her |new |home, |she |was |given |an |amortization |schedule |for |her |
mortgage.
How |can |an |amortization |schedule |help |Nora |with |her |financial |goals?
A) |The |amortization |schedule |will |include |payment |options |for |Nora |to |consider |so |she |can |
pay |off |her |mortgage |earlier |rather |than |later.
, B) |Nora |can |see |when |her |mortgage |payment |is |due |each |month, |so |she |can |plan |that |in |her |
personal |budget.
C) |Nora |will |know |the |dollar |amount |of |every |monthly |payment |for |the |life |of |the |mortgage, |
so |she |can |be |precise |in |her |budgeting.
D) |The |amortization |schedule |provides |Nora |with |all |the |information |from |her |mortgage, |
including |lender, |payment |address, |and |monthly |payment |due.
C) |Nora |will |know |the |dollar |amount |of |every |monthly |payment |for |the |life |of |the |mortgage, |
so |she |can |be |precise |in |her |budgeting.
Why |would |a |buyer |consider |an |adjustable-rate |mortgage |(ARM) |over |a |conventional |
mortgage?
A) |To |take |advantage |of |falling |interest |rates
B) |To |ensure |lower |monthly |payments
C) |To |put |risk |of |variable |rates |on |the |lender
D) |To |pay |off |the |mortgage |faster
A) |To |take |advantage |of |falling |interest |rates
Why |would |a |person |choose |a |higher |deductible |for |a |homeowner's |insurance |policy?
A) |To |reduce |the |insurance |premium
B) |To |lessen |the |risk |of |loss
C) |To |decrease |the |coinsurance |rate
D) |To |reduce |the |dollar |amount |of |a |loss
A) |To |reduce |the |insurance |premium
Ren |is |considering |purchasing |disability |income |insurance, |and |he |is |trying |to |determine |which
|type |of |policy |to |get.
Which |policy |should |Ren |choose |if |he |is |willing |to |pay |more |now |to |ensure |the |greatest |
disability |income |should |he |need |it?
A) |Social |Security |disability |policy
B) |Short-term |disability |policy
C) |Any-occupation |policy
D) |Own-occupation |policy
D) |Own-occupation |policy
