By: Kent Sakamoto
A) Extraordinary Returns
B) Efficiency (p. 124)
C) Positive Supply
D) Inverse Demand
2. Real estate and perfectly competitive markets include which characteristic(s)?
A) Critical Mass of Market Participants
B) Free Market
C) Product and Input Mobility
D) All of the above (p. 127)
3. Real estate markets establish prices to:
A) Inform Real Estate Investment Decisions
B) Stimulate Real Estate development
C) Allocate Space among competing Land Uses
D) Establish Land Use Patterns
E) All of the above (p. 124)
4. Qualities that give real estate value in the space market are called economic fundamentals?
5. An investment challenge that arises when long-term investments are funded by short-term liabilities is called disintermediation?
False (p. 139) Maturity Mismatch
6. Subprime market is the name for that market serving residential mortgage borrowers who do not qualify for standard prime mortgages?
7. Appraisers are hired to estimate the calue of a home when it is being refinanced or purchased with borrowed capital?
True (p. 148)
8. The basic idea of a mortgage securitization is to bring together a large group of similar mortgages, and use this pool of mortgages as collateral against various types of securities that are then sold to investors.
True (p. 142)