63 Cards in this Set
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What were the 5 “opportunity cost” strategies one should consider when buying
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a) Paying a higher price over time by using credit to buy items that you need now
b) Buying unknown possibly poor quality products that are less expensive
c) Selecting brands that may be difficult to service or repair
d) Ordering by mail or online which saves …
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What were 7 “practical purchasing” strategies suggested?
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a) Timing purchases Impulse purchases
b) Store selection
c) Brand comparison
d) Label information
e) Price comparison
f) Coupons
g) Rebates
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What type of warranty is the most complete (or comprehensive) warranty offered with purchases
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Full Warranty
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What type of warranty only covers a portion of the product replacement or repair?
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Limited Warranty
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What is a purchased “extended warranty called?
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Service Contract
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What were the 6 information sources discussed that might assist you with a consumer purchase
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a) Family
b) Friends
c) Consumer reports
d) Magazines
e) BBB
f) Kelly Bluebook
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What were the 4 possible steps to take IF you have a complaint about a product
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a) Local Communication ( Return)
b) Higher level communication (headquarters)
c) Third party involvement ( consumer agency assistance)
d) Litigation ( legal action)
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Loan obtained to purchase land/buildings with property purchased is pledged as security is called a
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Mortgage loan _______.
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About ______2/3 69%___ of Americans own home
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...
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Some experts say to use the _3x____ times annual household income guideline as your home price
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...
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Others suggest _4x___ times IF a __20___% down payment
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...
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Some mortgages require total long-term payments (car, college, credit) not to exceed _36___% of income
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...
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Some say monthly housing (P + I, Tax, Insurance) be equal or <__28__% of income, even without other debt
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...
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Most commonly mortgages are usually _15____ year or __30___ year
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...
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A real estate salesperson in IL must be licensed by the __state_____
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...
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What is the common real estate commission paid to realtors? Who pays the fee
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6-7% seller
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What does FSBO mean?
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for sale by owner
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When a realtor represents both the buyer and the seller it is called a
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dual agency
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Why is it “good practice” to be bank “pre-certified” before making an offe
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it has alot of value
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Who should you hire to check the physical condition of a home as you are buying
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1. Home inspector
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Banks usually require an ____appraisal _____ of the property if a loan is involved in buying a house
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...
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1. Money paid with an “offer” is called “__Earnest ______” money and if offer is accepted $$ is kept by seller’s ____real estate company broker____.
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...
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What is another name commonly used instead of the word “title
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deed
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Why does a buyer pay for title insurance? What does it guarantee
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no lien and no unknown information
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If “mechanicals” (furnace, A/C, roof) are guaranteed by insurance, that is usually called a
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home warranty
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1. About ___90____% of all home buyers use mortgage to buy
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..
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Who’s name is on the title of property in IL (even if there is borrowed money
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buyers name
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What does the bank do to a title to insure that a future buyer knows they may be owed money
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put a lien
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To get lower APR loan rates a bank may require money paid up front to “buy down” loan
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discount points
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1. A __pre-payment privilege __________allows an early pay off of loan before it is mature
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prepayment privilage
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A bank selling a group of mortgages to a government backed organization uses a practice called
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bundling
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What are the 2 most common government agencies used for this
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sallie mae freddie mac
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The day you take possession of a house is called the
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closing day
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1. Be sure you can recognize insurance “terms” – insurance, policy, premium, insured, policyholder, deductible
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Insurance- protection against financial loss
Policy- contract
Premium- risk paid
Policyholder- person who owns insurance
Deductible-
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able to recognize the 4 ways to address “risks” we encounter in life – (likely recognize examples)
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Risk- uncertainty
Peril- cause of a possible loss (contingency, fire, premature death, etc.)
Hazard- factor that increases the likelihood of loss through some peril (defective house wiring, etc)
Personal, property, and liability risks - uncertainties, (pure= accidental) (speculat…
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1. What are the 2 main categories of home insurance coverage?
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1) House and other structures
2) Personal Property
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1. Be able to recognize the 3 types of liability form examples given
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Strict
Vicarious
Negotiable
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What is an “umbrella” policy?
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Supplements your personal basic personal liability coverage (personal injury, libel, slander, deformation of character, and invasion of property, increases bodily injury and property damage costs)
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What 3 coverage areas would lead you to want “renters” insurance
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Protection against financial loss due to damage or loss of personal property
Not covered by policy of the building owner
Need protection with personal property at home
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1. What are examples of “specialized” coverage?
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Flood insurance, Earthquake insurance, Sewer drainage
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What is the part of a home policy called that covers the furniture, clothing, etc.?
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Condominium form personal property property damage
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What are the 6 listed items that can affect the cost of your home insurance
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1) Location of the home
2) Type of structure
3) The coverage amount
4) The policy type
5) Discounts
6) Differences among insurance companies
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What are the 2 main coverage categories for auto insurance
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Bodily injury coverage’s and property damage coverage’s
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1. What do the 3 numbers mean commonly used with auto insurance?
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Bodily injury (one person in accident) , All others in accident, property damage
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What are the IL minimum auto coverage levels
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20/40/15
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What are 3 advantages to No fault” insurance and why hasn’t it been widely adopted
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1) Reduce the time and cost associated with the settlement of automobile injury cases
2) Fast smooth ways of paying for damages without taking the legal action frequently necessary to determine fault
3) Because they vary state to state
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What does “subrogation” mean on an insurance policy
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The insurance company’s right to recover the amount it pays for the loss from the person responsible for the loss
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What factors are used to calculate auto insurance costs for a consumer
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1) Automobile type
2) Rating territory
3) Driver classification ( personal, accidents and traffic violations, credit history, and claims)
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1. How can I save money on car insurance?
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1) Comparing companies
2) Premium discounts
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What are the 5 contributing factors that are causing health care costs to rise in the US
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1) Use of expensive technologies
2) Duplication of tests
3) Variety and frequency of treatments
4) Number and longevity of the elderly
5) Increasing number of accidents and crimes that require services
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The policyholder is often asked to pay part of the costs of treatment and this is called the
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copay
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medicare
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: Hospital care
B: Doctors’ visits
C: Medicaid advantage system
D: Medication
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What are the odds of a worker needing this insurance before age 65? disability
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1 in 7
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What are 4-5 key questions to be answered before purchasing this insurance
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1. What % of salary do u want to cover, Are there exclusions on that?, Waiting period, duration, renewability, Accident and sickness coverage (double coverage)
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the legal procedure proving a will to be valid or invalid
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probate
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_________– sometimes called the “I love you will” leaves everything to the spouse
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simple
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leaves one-half of the estate to a spouse
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traditional marital state
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68. completely handwritten will prepared by yourself
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holographic
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is a will usually prepared with the assistance of an attorney
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formal
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a person specifically named to follow your property distribution instructions
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executor
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68. a named person who cares for property after a person’s death
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executive
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adds to or explains provisions stated in a will
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codicil
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______________– property jointly owned 50/50 and passes to the other owner with no tax at de
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joint ownership with right of survival
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FCS 233: EXAM 1