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The video tutorial introduces the concept of down payments, explaining its importance in financial transactions. It provides a basic understanding of how down payments work and their role in purchasing processes.

What is a down payment typically used for?

• To cover closing costs

• To pay off a loan

• To pay for insurance

• To reduce the total amount of a purchase

Why is it important to have a down payment ready?

• It eliminates the need for a loan

• It increases the loan amount

• It reduces the interest rate

• It shows financial responsibility

Which of the following is a benefit of having a down payment?

• Higher interest rates

• Increased loan term

• Lower initial purchase price

• Higher monthly payments

What is one strategy to save for a down payment?

• Invest in high-risk stocks

• Increase spending

• Create a dedicated savings account

• Borrow more money

How can setting a budget help in saving for a down payment?

• It reduces the need for a down payment

• It helps track expenses and savings

• It allows for more spending

• It increases income