Chapter 6 questions

1) which of the following is a characteristic of a perfectly competitive market?

A) Free Market
B) Critical mass of market participants
C) Equilibrium
D) Both A and B

2) An Example of a GSE is?

A) General Motors
B) Fannie Mae
C) Freddie Mac
D) Both B and C

3) A mortgage backed security is?

A) A name for the market that serves mortgage borrowers that do not qualify for prime mortgages.
B) A private corporation created by an act of congress.
C) The most productive use for property
D) An asset whose value is supported by a pool of mortgages

4) T/F. In real estate do price and quantity usually meet in equilibrium?

5) T/F. Real estate is a homogeneous product.

6) T/F. Situs refers to the fact that each parcel of real estate has its own set of unique characteristics.

7) T/F. The real estate crash of 2008 is impossible to blame on one person.

8) T/F Disintermediation occurs when depositors withdraw their funds from banks to invest in other opportunities

1.)D, 2.)D, 3.)D, 4.)F, 5.)F, 6.)T, 7.)T, 8)T.