Monday, March 7, 2011
1. The most productive use of a property which leads to its maximum value is:
A. Highest and Best Use
2. Which is not a characteristic of a perfectly competitive market:
A. Perfect Knowledge
B. Free Market
C. Homogeneous Product
D. All of the above are characteristics of a perfectly competitive market
3. What is the process of creating a mortgage-backed security?
A. Government Sponsored Enterprise
C. Mortgage Securitization
4. Fannie Mae and Freddie Mac are part of the secondary mortgage market.
5. Subprime market serves residential mortgage borrowers who qualify for standard mortgages.
T/F The subprime market serves borrowers who do not qualify for standard mortgages.
6. Fannie Mae and Freddie Mac are government sponsored enterprises.
7. The current housing crisis can be blamed on one particular person or industry.
T/F As the book states, blame can be placed on a number of people and industries.
8. In the 1960's the S&L made up 2/3 of the residential lending.