Sunday, February 26, 2012

Chapter 6 Real Estate Market

by: Mario Jaurgeui

True or False
In a supply demand curve, when prices go down, usually demand follows along with prices.

FALSE: When prices go down, demand goes up.

Multiple Choice
Real estate markets establish decisions to
(A) inform real estate investment decisions
(B) stimulate (or discourage) real estate development
(C) allocate space among competing land uses
(D) establish land use patterns
(E) all of the above


Multiple Choice
What is a characteristic of a perfectly competitive market?
(A) Free Market
(B) Product Equilibrium
(C) Production Lags
(D) The Development Of A Residential Secondary Mortgage Market


True or False
Population increase or decrease causes the demand curve to shift up or down on a demand curve graph.


True or False
In a secondary mortgage loan a lender is allowed to sell a mortgage that it had just created, the lender could then lend the proceeds of that sale to another borrower to create another mortgage.


True or False
Demand that went up in the 1940 for more money to buy more mortgages motivated the government to create a market for mortgages to recapitalize lenders.


True or False
The equilibrium market price is the price where all products are when all products are equally priced so that consumers do not shop around for prices.

FALSE: The equilibrium market price is when both supply and demand are in balance and all available product will be cleared from the market.

Multiple Choice
An asset whose value is derived from the value of underlying assets that back it is called a(an) ______________________.
(A) Commercial Mortgage
(B) Situs
(C) Mortgage Securitization
(D) Derivative
(E) Subprime Market


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