1. Which of the following is necessary for an English form will to be valid?
a. The person writing the will must be over age 21 at the time the will is written.
b. All heirs must agree to the terms of the will.
c. The will must be signed by the testator and two witnesses.
d. The will must be dated in the three years prior to death.
2. Before you start an investment program, you should ensure liquidity by having money in financial institutions or in money market securities.
True
False
3. Which mortgage option is best in the following scenario? The Wongs are purchasing their first home for $250,000 and financing with a $200,000 mortgage. They expect interest rates to stay the same for the next seven years at least, expect no increase in their incomes, and prime rate is three percent. Their primary goal is to pay down the principal as quickly as they can, and they can afford monthly mortgage payments of $1200.
a. A five-year closed convertible VRM (variable rate mortgage) at prime
b. A five-year open VRM at prime plus one percent
c. A seven-year closed fixed mortgage at six percent
d. A five-year closed fixed rate mortgage at five percent
4. A good way to estimate the market value of a home is to multiply the number of square feet by the average price per square foot of similar homes in the area.
True
False
5. The schedule that discloses the monthly payment that you will make, based on a specific mortgage amount, a fixed interest rate level, and maturity is called a(n)
a. obligation schedule.
b. amortization schedule.
c. payment table.
d. depreciation schedule.