Business and Personal Finance © 2007

Chapter 7: The Finances of Housing

Practice Tests

1
A _______ is someone who is familiar with the local housing market.
A)tenant
B)librarian
C)real estate agent
D)homeowner
2
Renting is a wise choice for someone who wants _______.
A)privacy
B)mobility
C)space
D)a large backyard
3
The legal document that defines the conditions of the rental agreement between the tenant and the landlord is called a _______.
A)mortgage
B)security deposit
C)deed
D)lease
4
_______ is the official document transferring ownership of a home from seller to buyer.
A)equity
B)deed
C)fixed-rate mortgage
D)lease
5
The value of the house less the amount still owed on the money borrowed to purchase it is called _______.
A)mortgage
B)equity
C)points
D)renters insurance
6
The most popular type of housing in the United states is the _______.
A)mobile home
B)condominium
C)single-family dwelling
D)duplex
7
A _______ is a person who evaluates a house and land for a buyer.
A)home inspector
B)real estate agent
C)tenant
D)landlord
8
The _______ is the amount that the owner asks for the house.
A)listing price
B)points
C)down payment
D)mortgage
9
A lender may ask a buyer to deposit money in a(n) _______ for paying property taxes.
A)home equity loan
B)escrow account
C)adjustable-rate mortgage
D)deed
10
One of the things a buyer can do to lower the interest rate on a loan is _______.
A)take out a second mortgage
B)obtain a home equity loan
C)have the house appraised
D)pay points
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