1. Family A and Family B each borrowed $200,000 for a home mortgage at 5% interest rate. Family A had a fifteen-year loan; Family B had a thirty-year loan. Which of the following is true?
a. Family B had higher monthly payments.
b. The total cost of the house finance at the end of the mortgage terms would be the same for both families.
c. Family A will pay less interests.
d. All of the above.
2. Which of the following practices will help in dealing with unexpected financial shocks?
Acquiring assets with low financial value
Purchasing low-utility products
Accumulating debt
Saving money regularly for emergency funds
Planning for retirement after retiring