Sunday, September 15, 2013

Diane Ray – Chapter 6 M/C and T/F Questions


1.         The difference between real estate market cycles and fluctuations can be summarized as:

            a.         Market cycles are predictable and fluctuations cannot be predicted

            b.         Market cycles are not predictable and fluctuations can be predicted

            d.         Both market cycles and fluctuations can be predicted

            e.         Neither market cycles nor fluctuations can be predicted

2.         Examples of mortgage backed securities include

            a.         Mortgage pass-through

            b.         Mortgage-backed bond

            c.         Collateralized mortgage obligations

            d.         All of the above

3.         The investment market for whole mortgage and for mortgage backed securities is the

            a.         Primary mortgage market

            b.         Government sponsored enterprises

            c.         Both a and b

            d.         None of the above

4.         In a perfectly competitive market, there would be no barriers.

            True

            False

5.         Equilibrium in an efficient market take a long time to establish.

            True

            False

        
      Ans:     1. a, 2. d, 3. d, 4. T, 5. T

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