Chapter 9

1. A tax shelter is the reduction in taxable investment income.
A. True
B. False

2. The control of a real estate product within a defined geographic region is a Spatial monopoly or Oligopoly.
A. True
B. False

3. The Annual debt service is the difference between annual intrest paid and annual principal reduction.
A. True
B. False

4. There are ten varieties of return ratios.
A. True
B. False

5. The abbreviation "OE" stands for Operating Expenses.

A. True
B. False

6. Which one of the following isn't a benefit to investing into Real Estate?
A. Morgage reduction
B. Pychic Perks
C. Cash Flow
D. None of the above

7. Which of the following is a Risk in Real Estate?
A. Tax shelter
B. Leverage
C. Liquidity
D. Inflation hedge

8. _____ is the risk that the investors cannot sell and convert the real estate investment to cash.
A. Management Risk
B. Liquidity Risk
C. Financial Risk
D. Inflation Risk

Answers: 1) A, 2) A, 3) B, 4) B, 5) A, 6) D, 7) C, 8) B