Final Exam Example.doc

Final Exam Example.doc - Essentials of Real Estate Finance,...

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©2009 Dearborn Real Estate Education Essentials of Real Estate Finance , 12 th Edition by David Sirota and Doris Barrell Examination #1 1. The American economy is most strongly affected by which of the following industries? a. Garment b. Construction c. Farm d. Steel 2. When Homestead Savings and Loan found itself in the position of having more funds withdrawn than were being deposited it was suffering from a. leverage. b. hypothecation. c. collateral. d. disintermediation. 3. When Joe and Mary Jones obtained a loan of $255,200 in order to purchase their new home, the lender required them to pledge the property as security for the loan. This is an example of real property used as a. leverage. b. collateral. c. disintermediation. d. hypothecation. 4. All of the following contribute to the ups and downs of real estate cycles EXCEPT a. general business conditions. b. supply of money. c. changing tax structures. d. consumer price index. 5. The Taxpayer Relief Act of ’97 provided relief from capital gains tax on the sale of a personal residence up to a. $500,000 for a single person. b. $500,000 for a couple. c. $250,000 for a couple. d. $125,000 for a couple. 6. Over 77 percent of all mortgage loans are made for which type of property? a. Multifamily b. One- to four-family dwellings c. Commercial d. Farm
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Essentials of Real Estate Finance, 12 th Edition ©2009 Dearborn Real Estate Education 2 7. A new real estate cycle begins when a. supply exceeds demand. b. supply and demand are equal. c. demand exceeds supply. d. interest rates go down. 8. The government has instituted all of the following actions to stem the current financial crisis EXCEPT the a. Federal Housing Finance Agency. b. American Recovery and Reinvestment Act. c. Homeowner Affordability and Stability Plan. d. American Balanced Budget Agency. 9. The main reason that most people strive to acquire money is to a. purchase goods and services. b. keep it locked in a vault. c. become a center power. d. create self-esteem. 10. As the central bank of the United States, the Fed is responsible for all of the following EXCEPT a. combating inflationary or deflationary pressures. b. supervising activities of savings associations. c. supervising activities of commercial banks. d. forestalling national liquidity crises and financial panics. 11. The “federal funds” rate is best described as the a. rate the Fed charges its member banks. b. rate Federal Reserve member banks charge each other. c. rate set by the Fed for government loans. d. rate paid on U.S. Treasury securities. 12. Which of the following advertisements would “trigger” Regulation Z, requiring full disclosure of all aspects of the financing being offered? a.
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Final Exam Example.doc - Essentials of Real Estate Finance,...

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