Chapter 3 – Conveying Real Property Interests Multiple Choice Questions
[QUESTION]
1. A deed is a special form of written contract used to convey a permanent interest in real property. Unlike most contracts, a deed requires:
A. both parties to be legally competent and of legal majority age.
B...
,Chapter 1 - The Nature of Real Estate and Real Estate Markets
Multiple Choice Questions
[QUESTION]
1. When viewed as a tangible asset, real estate can be defined as the land and its permanent
improvements. Improvements on the land include:
A. fences
B. walkways
C. sewer systems
D. streets
Ans: A
Difficulty: Basic
Learning Objective: 1
[QUESTION]
2. Real estate is property, which can be either a tangible or an intangible asset. Which of the
following would be considered an intangible asset?
A. Land
B. Building
C. Mortgage
D. Fence
Ans: C
Difficulty: Basic
Learning Objective: 1
[QUESTION]
3. If we desire to classify land by its use, land that does not include any improvements to the
land would be categorized as:
A. “Raw” land
B. Building site
C. Developed land
D. Property infrastructure
Ans: A
Difficulty: Basic
Learning Objective: 2
[QUESTION]
4. The size of a single family residential lot is typically:
A. less than one acre
B. between one and two acres
C. between two and three acres
D. greater than three acres
Ans: A
Difficulty: Intermediate
,Chapter 1 - The Nature of Real Estate and Real Estate Markets
Learning Objective: 2
[QUESTION]
5. As of 2011, the single largest asset category in the net worth portfolios of households is:
A. government and corporate bonds
B. stocks and mutual fund shares
C. consumer durable goods
D. housing
Ans: D
Difficulty: Intermediate
Learning Objective: 4
[QUESTION]
6. Real estate values derive from the interaction of three different sectors in the economy.
Which of the following sectors serves to allocate financial resources among households and
firms requiring funds?
A. User market
B. Capital market
C. Government
D. Property market
Ans: B
Difficulty: Intermediate
Learning Objective: 3
[QUESTION]
7. The demand for real estate derives from the need that market participants (e.g., owner
occupants, tenants, renters) have for shelter and convenient access to other locations. This
competition for physical location and space occurs in the:
A. User Market
B. Capital Market
C. Government Sector
D. Property Market
Ans: A
Difficulty: Intermediate
Learning Objective: 3
[QUESTION]
8. The expected stream of rental income is capitalized into value by converting expected
future cash flows into present value through a process called:
A. amortization
B. discounting
C. compounding
D. accounting
Ans: B
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