Section III – Knowledge Check 1. Benefits of leasing a vehicle include all of the following except:* A. Leasing is cheaper than buying B. State of the art gadgets and safety features C. Low/no repairs D. Reduced sales tax 2. Which of the following is a benefit of purchasing a second home:* A. Improved cash flow B. Improved flexibility in terms of career, schools, and travel C. Reduced liability D. Potential appreciation 3. Before purchasing a home, potential buyers should do all of the following except:* A. Get pre-qualified for a loan B. Know your budget C. Save enough for a 20% down payment D. Buy as much home as you qualify for 4. Important factors to consider when choosing a neighborhood include all of the following except:* A. Proximity and quality of local schools B. Economic stability C. The state income tax rate D. Crime rate 5. The acronym ARM stands for* A. Adjustable regulating margin B. Adjustable rate mortgage C. Adaptive rate modification D. Abbreviated rate modification 6. Which of the following is a common ARM reference rate:* A. London Interbank Offer Rate/LIBOR B. Federal funds rate C. Discount rate D. Federal Bank 1-year CD rate 7. Types of direct real estate investments include all of the following except:* A. Exchange traded funds B. Commercial real estate C. Residential multi-family real estate D. Industrial real estate 8. Direct investment in real estate is often titled or structured as all of the following except:* A. Joint tenancy B. Tenancy in common C. Multiple tenancy exchange fund D. Limited partnership 9. Risk management techniques include all of the following except:* A. Risk transfer B. Risk intolerance C. Risk avoidance D. Risk retention/self-insurance 10. The most cost-effective way for young couples to mitigate the risk of premature death is typically accomplished via:* A. A universal life annuity B. Comprehensive life umbrella plan C. A flexible premium HSA D. Term life insurance