Real Estate Finance Exam Questions with correct Answers

What is fiat money? - ANSWER-currency that is not backed by any precious metals . At the treasury level, funds can be raised to pay for government spending by increasing borrowing and _________. - ANSWER-raising taxes The ____________ is the interest rate a reserve bank charges eligible financial institutions to borrow funds on a short-term basis. - ANSWER-discount rate The Dodd-Frank Wall Street Reform and Consumer Protection Act, signed into law in 2010, established the ____________. - ANSWER-Consumer Financial Protection Bureau Real estate transactions regulated by the Office of Consumer Credit Commissioner include which of the following? - ANSWER-Home equity loans Home improvement loans Secondary mortgages The Community Reinvestment Act, enacted in __________, ensures that banks serve the needs of the community in which they were chartered. - ANSWER-1977 Sylvia, a real estate license holder, decides to prospect for new customers by handing out flyers which highlight her qualifications and also provide information about special loan programs. She works in a metropolitan area where the housing market continues to grow, and many new homes are being built in an area where zero-down USDA financing can be used. Victor, an RMLO who Sylvia recently met, volunteers to pay for the flyers and take care of all of the printing and set up if the flyers can be co-branded in order to help them both generate new business at the same time. Sylvia had some ideas about what she wanted the flyers to say about loans, but Victor assures her that he can do an excellent job at writing the information for that section of the flyer. - ANSWER- Which of the following language is considered a trigger as specified by Truth-In-Lending that Sylvia and Victor should avoid adding to their advertising flyers? - ANSWER-Monthly payments as low as $300