Monday, February 7, 2011

Chapter 1 Multiple Choice/True or False Questions

Multiple Choice

1) Which one of these is not a characteristic that contributes to the inefficiency of the real estate market.
  1. Data poverty
  2. Sequential bidding
  3. Origination
  4. Critical mass of market participants
2) The definition of real estate is...
  1. The legally recognized rights associated w/ the ownership of real estate
  2. The allocation of space over time
  3. Any property that appreciates over time
  4. The space in my backyard
3) The real estate markets trend of having unique property types which contributes to their inefficiency is an example of what?
  1. Localized market
  2. Securitization
  3. Real Estate Investment Trust (REIT)
  4. Stratified product type

A mortgage is a real estate asset created by real estate lenders and consists of a note creating a loan and a collateral agreement securing the loan. (True)

2) A commercial bank is a financial institution specializing in the banking and financial needs of households, which typically makes long-term permanent home loans. (False) (Savings and Loan Association)

3) Real estate professionals may work for themselves in large firms that specialize in offering outsourced solutions, or in real estate companies that internalize these functions. (True)

4) Those involved in a real estate investment trust (REIT) enjoy special tax treatment as long as certain investment and distribution rules are met. (True)

5) A servicer is a real estate professional who specializes in assessing the risk associated with real estate loans. (False) (Underwriter)

No comments:

Post a Comment