Real Estate Finance Practice Test With Correct Detailed Answers 100% Verified.
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Course
REAL ESTATE FINACE
Institution
REAL ESTATE FINACE
1. A couple recently purchased a home for $160,000, putting 3 percent down and obtaining a mortgage loan of $155,200. This is an example of - correct answer d. leverage.
2. Real estate is primarily a local market because - correct answer ...
1. A couple recently purchased a home for $160,000, putting 3 percent down and obtaining a mortgage
loan of $155,200. This is an example of - correct answer d. leverage.
2. Real estate is primarily a local market because - correct answer c. real estate is
fixed in one place
3. A developer looking at the long-term cycle in real estate is MOST concerned about the - correct
answer d. time involved to complete a project
4. The demographic group predicted to show the largest increase in population by the year 2050 is -
correct answer a. Hispanic.
5. A couple purchased a house five years ago for an investment. Under what circumstance would they
be eligible for the exemption on capital gains tax when they sell the property? - correct answer
d. They could move into the property for two years.
6. The Taxpayer Relief Act of '97 eliminated all of the following restrictions on avoiding capital gains tax
on the sale of a personal residence EXCEPT - correct answer d. the seller must have
lived in the property for two out of the past five years
7. A couple purchased their home 30 years ago for $30,000. They recently sold it for $400,000, and their
net profit on the sale was $350,000. How much will they have to pay in capital gains tax? - correct
answer d. Nothing, because they have a $500,000 exemption as a couple
8. Which of the following statements regarding money is TRUE? - correct answer b.
Money can be defined as anything used as a medium of exchange.
9. The Federal Reserve, the Department of the Treasury, and the Federal Home Loan Bank System
manipulate the supply and cost of money in this country in order to - correct answer
c. provide a balanced economy.
, 10. The federal agency often referred to as the nation's "monetary manager" is the - correct answer
a. Federal Reserve.
11. Which of the following financial institutions would be required to join the Federal Reserve System? -
correct answer b. Nationally charted commercial bank
12. The discount rate is BEST described as the - correct answer b. rate the Fed
charges its member banks.
13. To give a boost to the economy, the Fed could - correct answer c. lower the
discount rate and lower the reserve requirement.
14. The Department of the Treasury is responsible for all the following EXCEPT - correct answer
c. regulating commercial banks.
15. A major function of the Federal Home Loan Bank system is to - correct answer c.
provide a secondary market for member bank's securities.
16. Which of the following is NOT one of the primary activities of HUD? - correct answer
b. Enforcing Regulation Z provisions
17. The Equal Credit Opportunity Act prohibits discrimination by lenders on the basis of all of the
following EXCEPT - correct answer c. political affiliation.
18. The Real Estate Settlement Procedures Act (RESPA) regulations require that specific disclosures be
made to the borrower at all of the following times EXCEPT - correct answer b. at the
time application is made.
19. A community interested in expanding its supply of low-income housing could use any of the
following programs EXCEPT - correct answer c. industrial revenue bonds.
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