Help
Options
Didn't know it?
click below
click below
Knew it?
click below
click below
Don't Know
Remaining cards (0)
Know
retry
shuffle
restart
0:00
Embed Code - If you would like this activity on your web page, copy the script below and paste it into your web page.
Normal Size Small Size show me how
Normal Size Small Size show me how
Per. Fin. Hous/Trans
Personal Finance Housing and Transportation Review
| Question | Answer |
|---|---|
| Define risk. | Uncertainty about a situation's outcome |
| Define deductible. | Amount paid by the Policy holder for an agree upon portion of loss |
| Define Negotiating. | Process of determining the actual terms of the purchase and agreement between the seller and buyer |
| Define lemon law. | If you purchase a car that has a defect that remains unfixed after 4 repair attempts or the vehicle remains in repair shop for a total of 30 days. |
| Define cosigner. | Guaranteeing a loan for the original borrower |
| Define premium. | Fee paid to the insurer to be covered under the specified terms. |
| What is the minimum amount of automobile insurance required by law called? | Liabiity |
| What does liability insurance limit of 25/50/10 mean? | 25 ($25,000) is per person bodily injury limit 50 ($50,000) per accident bodily injury limit 10 ($10,000) per accident property damage limit |
| What does comprehensive insurance cover? | Includes all physical damage losses except collision and other specified losses--Theft, vandalism, fire, ice, windstorm, or hail; glass breakage; contact with animal. |
| How can consumers save money when purchasing automobile insurance? | Comparison shopping, good student discounts, multiple car/policy discounts |
| What is included in the purchasing cost of an automobile? | Negotiated price (loan amount + down payment + trade-in) + interest paid |
| What are the 7 steps in purchasing an automobile? | Prioritizing wants Pre-shopping research Fitting the budget Comparison shopping Negotiating Making the decision Evaluation the decision |
| What 3 variables are used in figuring the cost of an automobile loan? | Price, APR, and time |
| What is the relationship between the time period of loan and amount of interest paid? | The longer the time the more interest paid |
| What is the relationship between the time period of loan and amount of monthly payments? | The longer the time the smaller amount of the monthly payments. |
| What is the relationship between the APR and the total loan amount? | The higher the APR the greater the total loan amount. |
| What is the relationship between the APR and the amount of interest paid? | The higher the APR the larger the amount of interest paid |
| Define rent. | Cost of using someone else's property |
| Define security deposit. | An advance payment to cover anything beyond normal wear and tear on the unit |
| Define tenant. | The person who rents the property |
| Define property manager. | May charge a fee to the landlord, specifying the responsibilities and rights of both parties |
| Define landlord. | Owner of the rental property |
| Define lease. | A legal contract between the tenant and landlord, specifying the responsibilities and rights of both parties |
| Define equity. | Owning a home is an investment because if a person sells a home for more than what it was bought for, the person makes money |
| Define subleasing. | When the tenant allows someone else to move in and take over the rent payments |
| Define eviction. | Occurs when tenant does not voluntarily move out after the landlord has given required notice to tenant |
| Define no-lease agreement. | Month to month agreement; not in writing & risky |
| Define insurance. | An arrangement between an individual and insurer to protect the individual |
| What two things must a renter do before he/she can take possession of a rental property? | Pay a security deposit and sign a lease |
| What are two advantages and two disadvantages of renting? | Advantages: low move-in costs & fixed monthly expenses, etc Disadvantages: subject to terms of a lease & rent may change with little notice |
| What are 3 components that affect the amount of the mortgage payment? | Interest rate, amount borrowed, and length of loan |
| What is the maximum amount of an individual's annual household income that could be spent on the purchase price of a home? | 2 1/2 times annual gross income |
| What are two advantages and two disadvantages of home ownership? | Advantages: build equity which can be borrowed against if necessary and pride of ownership, etc. Disadvantages: large down payment & move-in costs |
| What are 3 factors that should be considered when deciding if you should rent or buy a home? | credit history, location, personal values, wants, and needs |
| Who should purchase renter's insurance>? | Tenant |
| What does renter's insurance cover? | Contents/personal possessions |
| What two types of insurance are included in a home owner's policy? | Property & Liability |
| What are three items that could appear on a lease agreement? | Length of lease, number of people in the rental unit, and payment responsibilities for all amenities. |
Created by:
rochelle.kanoy
Popular Family and Consumer sets