1.  Fannie Mae and Freddie Mac are _________

    a. Securitizer                     b. Mortgage banker

    c. Subprime mortgage    d. Secondary Mortgage Market

2. Select what is not true about Prime and Subprime Mortgages.

    a.   Prime and Subprime mortgages are built upon the same basic principle

    b.   Nonprime loans have a higher interest rate than prime loans

    c.   Prime loans are much less likely to have prepayment penalty than their subprime counterparts.

    d.   None of all

3.  Select a wrong answer about why real estate markets are inefficient.

     a.   Stratified product types     b.   Data poverty

     c.   Frequent bidding.                d.   Proprietary transaction

4.  Government provides many goods and services essential to real estate entrepreneurs.

     a.   True

     b.   False

5.  REIT stands for Real Estate Important Trust

     a.   True

     b.   False

6.  Terminator is a professional who performs the duties of a loan correspondent by collecting and posting  loan payments.

    a.   True

    b.   False

7.   It is possible to convert the rights to receive income from real estate assets into derivate securities

    a.   True

    b.   False

8.   Appraiser is a real estate professional, who specializes in assessing the risk associated with real estate loans.

  a. True

  b. False

Answer: d, d, c, a, b, b, a, b.