Questions and Answers.
1)
An asset whose value is derived from the value
of underlying assets that back it. Example in real estate is mortgage-backed
securities and REIT shares.
A-
Efficiency
B-
Disintermediation
C-
Derivative
D-
Equilibrium market price
2)
That most productive use to which a property can
be physically and legally dedicated, leading therefore, to its maximum value.
It is that use by which the market prices the property.
A)
Situs
B)
Subprime market
C)
Maturity mismatch
D)
Highest and best use
3)
The investment market for whole mortgages and
for mortgage-backed securities, as opposed to the primary mortgage market,
where mortgages are created between lenders and borrowers.
A)
Mortgage securitization
B)
Mortgage-backed security
C)
Secondary mortgage market
D)
Non above
T/F questions
4)
The term “Efficiency” is used to describe how quickly
transaction prices within a market reflect relevant market information. T/F
5)
“Situs” is the unique location profile of a real
estate site, including the quality of its exposure, accessibility to
neighboring activities, and infrastructure.T/F
6)
“Mortgage securitization” is a derivative asset
whose value is supported by a pool of mortgages and whose cash flow is derived
from the debt service received from the mortgage pool. T/F
7)
The term “Subprime market” is the popular name
for that market serving residential mortgage borrowers who do not qualify for
standard hence prime mortgages. T/F
8)
A “Free Market” is a market that operates free
from governmental or any other outside control; barriers to market
participation are nonexistent. T/F
1C, 2D, 3C ,4T, 5T, 6F, 7T, 8T
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