CHAPTER 5 REVIEW GAME ARE YOU READY

FALSE Warehouse food stores are usually open 24 hours a day.

true Bad credit score can keep you from getting a good job.

Will pay to stay in Style! Why are current clothing styles generally expensive? Manufactures know that people ________________.

between money you save and the time it takes to collect them. Using cent off coupons for food involves a trade-off between __________ you save and the _________ it takes to collect them.

TRUE Private label foods are 40% cheaper than brand name foods.

Bodily injury and property damage. liability insurance covers _______ injury and __________ damage.

smaller Relative to people at the turn of the nineteenth century, people today spend a _____________ percentage on clothes.

Security deposit Closing costs include all the following except one/ legal costs, title search, security deposit, and home inspection

TRUE Interest paid on a mortgage is a tax-deductible.

lease long-term agreement describing the terms under which property is rented are called a ____________.

The tradeoff for comparison shopping for food involves the price, __________, and ___________ (what other two things do you compare when shopping for food). Quality and Quantity (size)

$90,000.oo The most expensive house for which a person with an annual income of $45,000 would probably qualify for a mortgage would be (Using Rule #1).

TRUE People build equity by purchasing a home.

FALSE A mortgage is a type of home improvement loan.

TRUE When buying the cheapest clothes, you usually have to give up style.

true Buying the cheapest coat can be more expensive than buying a more durable one.

Service flow amount of use a person gets from an item over time and the value a person places on that use is call _________ ________.

FALSE Where you drive, make no difference in the cost of insurance.

TRUE bonus *payments and interest floATS up and down with the _____________ INTEREST rate set by the federal _________________. If you have a flexible rate mortgage, monthly payments increases when the interest rate increases.

FALSE bonus what is the benefit? There is no benefit of buying a larger car or truck.

item that carries the name of a store private-labeled product bonus* what is the other name for private labeled products? item that carries the name of a store

TRUE You have the right to privacy when you rent an apartment.

FALSE You can have an animal in a rented house even if not stated the lease.

FALSE Your budget does not affect the situation of finding a place to live.

convenience store store that is open 16-24 hours a day and carries a limited selection of items

FALSE bonus what part of your take home pay can a monthly payment be. Monthly payments for a mortgage should be more than half monthly take home pay.

TRUE Extended warranties can save costly repairs of your car.

points fees paid to a lender and computed as percentage of a loan are called ___________.

TRUE Young males have the highest automobile insurance because they have the most serious of accidents than any other age group.

Automobiles depreciate even if they are not driven. TRUE Automobiles depreciate even if they are not driven.

TRUE Normal maintenance of a car is rotating the tires.

TRUE Renting a home increases your mobility more than owning.

durability ability of an item to last a long time, the item has ___________.

False bonus save ____% By using cents-off coupons, you can save up to 40% on your food budget in a year time.

FALSE VA mortgages are made to low income people who have qualified by FHA standards.

TRUE The bad thing about a Flexible Rate Mortgage, payments can increase.

TRUE You can receive a good credit rating if you pay your rent on time.

Club warehouse People who are able to use or store large quantities of bulk food items can save money by shopping at _______________.

Closing cost What are the fees involved in arranging for a mortgage or in transferring ownership of property called?