Chapter 7:

3. Describe a variable- or adjustable-rate loan. List four features that should be compared when shopping for this type of loan. What is a convertible loan?
4. Are the initial rates lower on a fixed-rate loan or a variable-rate loan? Why?
6. Home equity credit loans and credit lines are very popular sources of consumer credit. List the advantages and disadvantages of borrowing against home equity.
10. What are payday loans? Besides the high interest rates, what are some of the dangers associated with this type of loan?
14. Based on Principle 8: Risk and Return Go Hand in Hand, name five ways you can reduce the risk for the lender thereby reducing the return for the lender and saving yourself money.

Chapter 8:

5. What three factors determine the monthly payment on an automobile loan?
7. What is the purpose of an auto lease? What are the two types of leases? What is the major difference between the two?
12. What three major categories of expenses make up the costs of homeownership? Give two examples of each.
13. What are the initial, or one-time, costs associated with financing a home?
14. What four separate expenses make up the mortgage payment? What acronym is used to describe a mortgage payment?
15. What are the advantages and disadvantages of buying versus renting a home?
28. List the advantages of a fixed-rate mortgage. In contrast, what are the advantages of an adjustable-rate mortgage, or ARM?

Chapter 9:
2. Summarize the four-step process for smart buying. How does Principle 9: Mind Games, Your Financial Personality, and Your Money play a role in this process?
8. Identify the characteristics of a consumer who should seriously consider auto leasing. What are the six factors that determine the monthly lease payment?
16. What two primary lifestyle and financial factors should you consider in the buy or rent decision?
17. From a financial point of view, over a 7-year period, why is it better to own than to rent? Consider costs, return, and taxes in your answer.
30. What are some factors that determine whether or not a homeowner should refinance?
32. List and describe six keys to successful debt management. How do you differentiate good and bad debt?

Chapter 7: 3. Describe a variable- or adjustable-rate loan. Li...