FCS: 1.04 Quiz -- Sample Questions

How do high unemployment rates in a community affect the housing market there?

• High unemployment rates negatively impact the housing market by decreasing demand, lowering home prices, and increasing vacancies.
• High unemployment rates have no effect on the housing market.
• High unemployment rates cause home prices to rise.
• High unemployment rates lead to increased demand for housing.

How does the availability of credit in a community affect the housing market there?

• Increased availability of credit boosts housing demand and prices, while limited credit restricts access and lowers demand.
• Availability of credit has no impact on the housing market.
• Limited credit increases housing demand and prices.
• Increased credit leads to a decrease in housing prices.

How do high interest rates affect a community's housing market?

• High interest rates increase demand for homes, driving prices up.
• High interest rates have no impact on the housing market.
• High interest rates generally decrease demand for homes, leading to lower prices and reduced market activity.
• High interest rates lead to more construction of new homes.

What conclusion could you make about community values in an area that has a covenant that restricts the removal of healthy trees?

• The community prioritizes urban development over nature.
• The community is indifferent to environmental issues.
• The community values environmental preservation and sustainability.
• The community encourages deforestation for economic growth.

Which of the following best defines a covenant?

• A type of legal document for property transfer.
• A casual agreement made between friends.
• A set of rules for a game or competition.
• Rules about what can be done to a property in the community.

Which of the following best defines the term "lease"?

• A long-term rental agreement

• A lease is a verbal agreement without any payment.
• A lease is a permanent ownership of property.
• A lease is a type of insurance policy.

Identify the factors involved in housing decisions.

• Historical significance
• Weather patterns
• Government regulations
• Financial considerations, location, personal preferences, market conditions, lifestyle needs.

Why is making a housing decision a personal as well as financial decision?

• Personal feelings have no impact on housing choices.
• Housing decisions are solely based on market trends.
• Because it involves personal preferences and lifestyle choices alongside financial implications.
• It only affects the financial stability of the buyer.

Which of the following is an example of how a person's lifestyle can influence their housing decisions?

• A person who prefers city life may choose to live in a rural area.
• A person who dislikes pets may choose to adopt multiple animals.
• A person who enjoys outdoor activities may choose to live near parks.
• A person who works from home may decide to live in a high-traffic area.

Which of the following is an advantage of renting over buying a home?

• Flexibility to move easily without the burden of selling a property.
• Ability to customize the property without restrictions.
• Guaranteed property value appreciation.
• Lower overall cost compared to renting.