Law of Finance Exam Questions with Accurate Answers

Congress created the Federal Housing Administration in ______. (a) 1949 (b) 1939 (c) 1984 (d) 1934 - ANSWER-D In order to qualify for exemption from capital gains, the property must have been the primary residence for two of the previous _____ years. - ANSWER-5 years A loan with no discount points is known as a(n) ________. (a) Birdie loan (b) Par loan (c) Interim loan (d) Air loan - ANSWER-B What is fiat money? (a) Currency that is not backed by any precious metals. (b) Currency backed by silver and gold. (c) Currency backed by gold only. (d) Currency backed by platinum. - ANSWER-A At the treasury level, funds can be raised to pay for government spending by increasing borrowing and _________. (a) Raising taxes (b) Offering discounts on government securities (c) Raising the cost of real estate (d) Flooding the market with money - ANSWER-A