Multiple Choice - True/False Questions for Chapter 12

Multiple Choice Questions:

1.

The systematic process that appraisers are taught to follow when valuing real estate is called what?

a) Prescriptive appraisal process

b) Normative appraisal process

c) Income approach

d) None of the above

2.

The process of converting an income stream into a lump sum estimate of present value is called what?

a) Time value of money

b) Anchoring

c) Depreciation

d) Capitalization

3.

An agency that exists when a broker represents both the buyer and the seller of a transaction is called what?

a) Exclusive agency

b) Dual agency

c) Cooperating broker

d) None of the above

True/False Questions:

4.

Architects, engineers, and contractors build a developer´s team.

- True

- False

5.

The broker who has entered into an agency agreement to market and sell property on behalf of its owner is called a listing broker.

- True

- False

6.

Value in exchange is one of two broad concepts of real estate value considered by appraisers. Value in use originates from the worth or utility that a property has for a particular individual who uses it.

- True

- False

7.

The subconscious mental shortcuts employed by human problem solvers needing to minimize cognitive effort is called Heuristics.

- True

- False

8.

A project management technique, common in real estate construction, used to schedule work and measure progress against expectations is called Gantt chart.

- True

- False

Answers:

b) d) b)

True, True, False, True, True