REE 4204 Sirmans Exam Questions With Correct Answers
3 views 0 purchase
Course
REE 4204
Institution
REE 4204
REE 4204 Sirmans Exam Questions With
Correct Answers
Finance - answer-study of the process, institutions,markets and instruments used to transfer
money and credit between individuals, business, and gov
applied economics - answer-study of the allocation of resources for the purpose of producing
...
EXAM STUDY MATERIALS July 30, 2024 11:26 AM REE 4204 Sirmans Exam Questions With Correct Answers Finance - answer✔✔-study of the process, institutions,markets and instruments used to transfer money and credit between individuals, business, and gov applied economics - answer✔✔-study of the allocation of resources for the purpose of producing goods and services for various members of society -considers time value of money and implications of the interest rates -focused on cash flows not profts -makes extensive use of the concept of risk Real estate finance - answer✔✔-study of institutions, markets, and instruments used to transfer money and credit for the purpose of developing or acquiring real property real property - answer✔✔-rights,powers, and privileges associated with the use of real estate real estate - answer✔✔land and all the fixed immovable improvements on it Environment of real estate - answer✔✔the institutions that create and purchase real property and the markets within which they are transferred financial intermediaries - answer✔✔-the financial institutions that channel funds from the surplus income units to the deficit income units -commercial banks -thrift instituions - S&L associations and mutual savings banks -investment companies -pool the funds of savers and invest the funds in a portfolio of assets - insurance companies - receive periodic or lump sum payments from individiudals or organizations in return for a promise to make future payments if certain events occur -pension funds Direct financing - answer✔✔- when the flow of funds takes the place with out the use of intermediaries primary mortgage market - answer✔✔-market where mortgages are originated EXAM STUDY MATERIALS July 30, 2024 11:26 AM secondary mortgage market - answer✔✔-fannie Mae, freddie Mac, ginnie mae -agencies and firms that purchase mortgages form other intermediaries or brokers that deal with surplus income units, using funds raised through the sales of securities they create -issue mortgages using mortgage pool s at collateral -a large and active secondary market makes assets more liqid Financial markets are divided into two ca tegories - answer✔✔1. money markets - short -term securities of 1 yr to less 2. capital markets -long term securities more than 1 yr to maturity (real estate financing takes place here) General lèvel of real estates with bonds - answer✔✔-no risk in bonds -the price of a bond is inversely related to and determined by the market required yield monetary theory of inflation - answer✔✔-the greater the rate of growth in money the greater the rate of inflation fisher equation - answer✔✔-inflation rate plays an import ant role in the market rate -I(nominal rate observed in the market)=r(real rate lender wants to receive)+p(expected inflation over the maturity) Risks in Real Estate - answer✔✔-default risk -risk that borrower will not repay the mortgage per the contract -callability risk -borrower might pay before maturity -maturity risk -the longer the maturity of an asset the greater the given change in interest rates -marketability risk -risk that the asset won't trade in a large organized market -inflation risk -risk in lo ss of purchasing power -interest rate risk - risk of loss due to change in market interest rates Municipal bonds - answer✔✔-least amount of risk involved -government treasury bonds -interest earned from these bonds is tax free, but have lower returns becaus e they are tax free Yield curve - answer✔✔-relates maturity and yield(return) at the same point in time -upward sloping -yield on long -term assets is greater than short term assets -downward sloping - happens when interest rates are really high
The benefits of buying summaries with Stuvia:
Guaranteed quality through customer reviews
Stuvia customers have reviewed more than 700,000 summaries. This how you know that you are buying the best documents.
Quick and easy check-out
You can quickly pay through credit card or Stuvia-credit for the summaries. There is no membership needed.
Focus on what matters
Your fellow students write the study notes themselves, which is why the documents are always reliable and up-to-date. This ensures you quickly get to the core!
Frequently asked questions
What do I get when I buy this document?
You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.
Satisfaction guarantee: how does it work?
Our satisfaction guarantee ensures that you always find a study document that suits you well. You fill out a form, and our customer service team takes care of the rest.
Who am I buying these notes from?
Stuvia is a marketplace, so you are not buying this document from us, but from seller Thebright. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy these notes for $11.49. You're not tied to anything after your purchase.
