Chapter #6 Multiple Choice and True/False Questions
By: Kent Sakamoto
By: Kent Sakamoto
1. A measure of how much information a market has to transmit and how quickly and cheaply it transmits the available information, is an example of
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?
True
False
True (p.132)
5. An investment challenge that arises when long-term investments are funded by short-term liabilities is called disintermediation?
True
False
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?
True
False
True (p.140)
7. Appraisers are hired to estimate the calue of a home when it is being refinanced or purchased with borrowed capital?
True
False
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
False
True (p. 142)
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?
True
False
True (p.132)
5. An investment challenge that arises when long-term investments are funded by short-term liabilities is called disintermediation?
True
False
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?
True
False
True (p.140)
7. Appraisers are hired to estimate the calue of a home when it is being refinanced or purchased with borrowed capital?
True
False
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
False
True (p. 142)
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