4
QuizMultiple Choice

Case Study: Personal Financial Planning — Quiz

Question 4 • Personal Finance

What is an advantage of renting a place to live?

Answer
A
low down payment
B
lower up-front costs
C
increasing equity over time
D
payments change from month to month

Explanation

Renting usually requires fewer and smaller initial expenses than buying a home. A renter may pay a security deposit and the first month’s rent, while a buyer often needs a substantial down payment and closing costs. Therefore, lower up-front costs is the advantage; increasing equity is associated with owning, not renting.

AI-written and checked against the verified answer.

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