Ch. 21 Test Review

Which of the following statements about housing is true?

• Housing is the largest single expense in a budget.
• Housing is a minor expense in a budget.
• Renting is always cheaper than buying a home.
• Utilities are the largest single expense in a budget.

Which of the following should you do prior to searching for an apartment?

• sign a lease

• identify your needs and wants

• fill out an application

• schedule a moving company

Which of the following statements is true regarding renters' responsibilities?

• Renters must pay property taxes and cover all repairs.

• Renters are responsible for paying property taxes directly to the government.

• Renters typically are not responsible for property taxes or major repairs.

• Renters must pay property taxes but the landlord handles repairs.

Which of the following is a disadvantage of renting over buying?

• When new to an area, renting gives you a chance to learn about the community.

• You may have to move if the property is sold.

• It’s easier to move.

• You are obligated only for the length of the lease.

Which is the following is a disadvantage to buying?

• During inflationary times, property values rise.

• You build equity.

• You have to take out a mortgage and need a down payment.

• It can improve your credit rating.

A(n) _____ is a loan, typically for 15-30 years, obtained from a financial institution to buy housing.

• Auto loan
  

• Mortgage

• Personal loan

• Line of Credit

A lease is the rental agreement between a tenant and a landlord.

• True

• False

(A)_____ is money invested in a home above the amount owed on a mortgage.

• Down payment

• Principal

• Equity

• Security deposit

A(n) _____ is a sum of money, usually equal to one month’s rent, which the landlord

holds during the time you rent the apartment.

• down payment
  

• security deposit

• application fee

• principal

Evan and Eli are college students renting an apartment from Queen City Rentals. Who is the landlord?

• Evan and Eli

• Queen City Rentals