5
QuizMultiple Choice

Investing and Financial Markets — Unit test

Question 5 • Personal Finance - EL3403

What is an advantage of renting a place to live?

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

Explanation

Renting usually requires less money up front than buying a home, since renters generally do not need a large down payment or closing costs. Therefore, lower up-front costs is an advantage of renting. Increasing equity over time is an advantage of owning a home, not renting.

AI-written and checked against the verified answer.

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