1. Henry has $2,500 for a down payment and thinks he can afford monthly payments of S400. If he can finance a vehicle with an 8%, 3-year loan from a local bank, what is the maximum amount Henry can spend on the car? S12,765 S15,265 S16,879 S14,079 b. S14,400 c. a. d. e. 2. The biggest fixed cost of owning a car is likely to be the A. loan payments B. insurance costs C. cost of license and renewals D. maintenance charges 3. Janet is considering the purchase of a condo for $150,000, partly financed by a mortgage. She is due to retire in a few years. If she cannot make her mortgage payments on time, she is bound to suffer a A. negative equity on her property B. reduced residual value of the property C. higher rent ratio D. foreclosure of her house are ongoing costs of home ownership. 4. A. Down payments B. Closing costs C. Taxes on capital gains D. Property taxes and insurance 5. The seller of the house typically pays the A. appraisal fee. B. loan application fee C. real estate agent's commission. D. title search and insurance. 6. Which of the following is an appropriate reason for using a credit card? Purchase of food Payment of utility d. Shopping convenience b. a. bills Impulse purchases 7. It is good to use credit for: buying groceries Payment of small cash outlays c. e. b. purchasing an d. a. expensive perfume a tourist destination buying a car buying a dress visiting e. 8. Which of the following is an improper use of credit? Buying a home Buying a short-lived b. a. Spreading payments within a budget Purchasing a big-ticket item service c. Meeting a d. financial emergency 9. e. is a benefit of using credit cards. Being able to buy inexpensive goods while Providing Making Being able to meet everyday Being able to meet a financial a. spreading the payments over time payments for living beyond one's means impulse purchases living expenses b. c. d. e