ARE144SP10MT3_FINAL_va_KEY

ARE144SP10MT3_FINAL_va_KEY - Name:_KEY_ Last 4 digits of...

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Name:____KEY______________________ Last 4 digits of your Student ID Number:__________ Managerial Economics (ARE) 144 University of California, Davis, Spring 2010 Dr. John H. Constantine Final Exam, Wednesday, June 9 , 6:00 p.m. – 8:00 p.m. (Registrar’s exam code “T”) 235 TOTAL POINTS
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1 Part I: Multiple Choice (60 total points; each question is worth 3 points.) There are 20 multiple choice questions, each having only one correct answer. 1) The Government National Mortgage Association (GNMA) was organized to perform three principal functions. Which of the following is not a function of GNMA? a) Provide special assistance lending in support of federal programs b) Manage and liquidate mortgages previously acquired by FNMA c) Manage all secondary mortgage market operations d) Provide a guarantee for FHA/VA mortgage pools that would provide a guarantee for mortgage backed securities 2) If you own a mortgage passthrough bond, the amount that you receive each month will: a) decrease at a constant rate. b) increase at an increasing rate. c) be a fixed value. d) vary dependent upon the principal and interest paid on the mortgages each month. e) include only the scheduled principal payment plus the interest. 3) A comparable property has a feature that is superior to the subject property. What adjustment would be made in the sales comparison approach to value? a) Value of the feature would be subtracted from the sales price of the comparable property b) Value of the feature would be added to the sales price of the comparable property c) Value of the feature would be subtracted from the value of the subject property d) Value of the feature would be added to the value of the subject property 4) Which of the following statements regarding the sales comparison approach to appraisal is true? a) As a “rule of thumb” transactions involving foreclosures should be discounted by 10 percent b) The comparable buildings’ characteristics are more important that the comparable properties’ location for performing the sales comparison c) The comparable sales must involve transactions between unrelated individuals d) The only factors important for comparable analysis are property size, building size, age of the building, and the condition of building 5) Which of the following is not a major type of mortgage-related securities? a) Mortgage-backed bonds (MBBs) b) American depositary receipts (ADRs) c) Mortgage pass-through securities (MPTs) d) Collateralized mortgage obligations (CMOs) e) All of the above are mortgage-related securities 6) The process of converting periodic income into a value estimate is referred to as income capitalization. Income capitalization models can generally be categorized as either direct capitalization models or discounted cash flow models. Which of the following statements best describes the direct capitalization method?
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This note was uploaded on 03/14/2012 for the course ARE 144 taught by Professor Johnson,e during the Spring '08 term at UC Davis.

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ARE144SP10MT3_FINAL_va_KEY - Name:_KEY_ Last 4 digits of...

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