Question 1

____________________ inflation results in higher prices due to increased costs of labor and supplies.

Accepted Answer

The answer of ____________________ inflation results in higher prices due...

Question 2

Federal tax treatment of expenses and profits from real estate investments has little effect on what a person will pay for a property.

Accepted Answer

A) True 
 B)False

Question 3

Commercial property has a useful life under IRS guidelines of

Accepted Answer

A)  15 years. 
B)  27 years. 
C)  39 years. 
D)  19 years. 
A)  15 years. 
B)  27 years. 
C)  39 years. 
D)  19 years.

Question 4

Federal tax laws have traditionally allowed owners of investment properties to deduct all of the following EXCEPT

Accepted Answer

A)  depreciation on land. 
B)  maintenance costs. 
C)  operating costs. 
D)  ad valorem taxes. 
A)  depreciation on land. 
B)  maintenance costs. 
C)  operating costs. 
D)  ad valorem taxes.

Question 5

All of the following have made home purchases by persons of modest income easier EXCEPT

Accepted Answer

A)  FHA loan insurance programs. 
B)  creation of extra money by the federal reserve. 
C)  VA loan guarantee programs. 
D)  income tax deductions for mortgage loan interest and taxes. 
A)  FHA loan insurance programs. 
B)  creation of extra money by the federal reserve. 
C)  VA loan guarantee programs. 
D)  income tax deductions for mortgage loan interest and taxes.

Question 6

By 1985, the market for residential housing for first-time buyers was strongest for the sale of

Accepted Answer

A)  condominium units. 
B)  large single-family houses of more than 1600 square feet. 
C)  smaller single-family houses of approximately 1000 square feet. 
D)  cooperative housing. 
A)  condominium units. 
B)  large single-family houses of more than 1600 square feet. 
C)  smaller single-family houses of approximately 1000 square feet. 
D)  cooperative housing.

Question 7

Choose the one most appropriate answer for each.
-the ability of a region to export goods and services to other regions

Accepted Answer

A) age distribution 
B) base industry 
C) buying pattern 
D) cost-push inflation 
E) demand
F)demand-pull inflation
G)economic base
H)employment multiplier
I)Federal Reserve Board
J)long-run demand
K)monetary inflation
L)monetize the debt
M)primary industry
N)real
O)real-cost inflation
P)secondary industry
Q)service industry
R)short-run demand
S)supply
T)vulnerability 
A) age distribution 
B) base industry 
C) buying pattern 
D) cost-push inflation 
E) demand
F)demand-pull inflation
G)economic base
H)employment multiplier
I)Federal Reserve Board
J)long-run demand
K)monetary inflation
L)monetize the debt
M)primary industry
N)real
O)real-cost inflation
P)secondary industry
Q)service industry
R)short-run demand
S)supply
T)vulnerability

Question 8

Expectations about inflation tend to parallel actual changes.

Accepted Answer

A) True 
 B)False

Question 9

Generally, for every job created by a base industry, there will be created in service industries approximately

Accepted Answer

A)  an equal number of jobs. 
B)  two jobs. 
C)  one job for every two persons employed in the base industry. 
D)  four jobs. 
A)  an equal number of jobs. 
B)  two jobs. 
C)  one job for every two persons employed in the base industry. 
D)  four jobs.

Question 10

Which of the following terms would not apply to an industry that produces goods or services that are locally consumed ?

Accepted Answer

A)  Service industry 
B)  Accessory industry 
C)  Secondary industry 
D)  Filler industry 
A)  Service industry 
B)  Accessory industry 
C)  Secondary industry 
D)  Filler industry

Question 11

Over a period of years, there will be periods of rapid price changes mixed with periods of mild price changes.

Accepted Answer

A) True 
 B)False

Question 12

The creation of excessive amounts of money by the government would have little effect on monetary inflation.

Accepted Answer

A) True 
 B)False

Question 13

A dramatic increase in the birth rate will have an immediate effect on the demand for housing but will have no long-range effect.

Accepted Answer

A) True 
 B)False

Question 14

Under federal tax laws that allow homeowners to deduct mortgage loan interest, what would be the after-tax cost to a homeowner in the 28 percent tax bracket of a home mortgage loan made at a 12 percent rate of interest?

Accepted Answer

A)  3.36 percent 
B)  8.64 percent 
C)  9.5 percent 
D)  8.0 percent 
A)  3.36 percent 
B)  8.64 percent 
C)  9.5 percent 
D)  8.0 percent

Question 15

Choose the one most appropriate answer for each.
-results from increasing the money supply faster than increases in goods and services to buy

Accepted Answer

A) age distribution 
B) base industry 
C) buying pattern 
D) cost-push inflation 
E) demand
F)demand-pull inflation
G)economic base
H)employment multiplier
I)Federal Reserve Board
J)long-run demand
K)monetary inflation
L)monetize the debt
M)primary industry
N)real
O)real-cost inflation
P)secondary industry
Q)service industry
R)short-run demand
S)supply
T)vulnerability 
A) age distribution 
B) base industry 
C) buying pattern 
D) cost-push inflation 
E) demand
F)demand-pull inflation
G)economic base
H)employment multiplier
I)Federal Reserve Board
J)long-run demand
K)monetary inflation
L)monetize the debt
M)primary industry
N)real
O)real-cost inflation
P)secondary industry
Q)service industry
R)short-run demand
S)supply
T)vulnerability

Question 16

The ECOA has contributed to greater numbers of homeowners among

Accepted Answer

A)  single persons. 
B)  divorced persons. 
C)  employed women. 
D)  all of the above. 
A)  single persons. 
B)  divorced persons. 
C)  employed women. 
D)  all of the above.

Question 17

Which has the greatest effect upon the interest rate an individual must pay for a real estate mortgage loan?

Accepted Answer

A)  Federal governmental borrowing 
B)  State governmental borrowing 
C)  Local governmental borrowing 
D)  Competition form commercial and industrial borrowers 
A)  Federal governmental borrowing 
B)  State governmental borrowing 
C)  Local governmental borrowing 
D)  Competition form commercial and industrial borrowers

Question 18

Choose the one most appropriate answer for each.
-higher prices due to increased costs of labor and supplies

Accepted Answer

A) age distribution 
B) base industry 
C) buying pattern 
D) cost-push inflation 
E) demand
F)demand-pull inflation
G)economic base
H)employment multiplier
I)Federal Reserve Board
J)long-run demand
K)monetary inflation
L)monetize the debt
M)primary industry
N)real
O)real-cost inflation
P)secondary industry
Q)service industry
R)short-run demand
S)supply
T)vulnerability 
A) age distribution 
B) base industry 
C) buying pattern 
D) cost-push inflation 
E) demand
F)demand-pull inflation
G)economic base
H)employment multiplier
I)Federal Reserve Board
J)long-run demand
K)monetary inflation
L)monetize the debt
M)primary industry
N)real
O)real-cost inflation
P)secondary industry
Q)service industry
R)short-run demand
S)supply
T)vulnerability

Question 19

The existence of a base industry is essential to the maintenance of local real estate values.

Accepted Answer

A) True 
 B)False

Question 20

Higher prices due to buyers bidding against each other causes ____________________ inflation.

Accepted Answer

The answer of Higher prices due to buyers bidding against...

Exam 25: Real Estate and the Economy

____________________ inflation results in higher prices due to increased costs of labor and supplies.

Federal tax treatment of expenses and profits from real estate investments has little effect on what a person will pay for a property.

Commercial property has a useful life under IRS guidelines of

Federal tax laws have traditionally allowed owners of investment properties to deduct all of the following EXCEPT

All of the following have made home purchases by persons of modest income easier EXCEPT

By 1985, the market for residential housing for first-time buyers was strongest for the sale of

Choose the one most appropriate answer for each. -the ability of a region to export goods and services to other regions

Expectations about inflation tend to parallel actual changes.

Generally, for every job created by a base industry, there will be created in service industries approximately

Which of the following terms would not apply to an industry that produces goods or services that are locally consumed ?

Over a period of years, there will be periods of rapid price changes mixed with periods of mild price changes.

The creation of excessive amounts of money by the government would have little effect on monetary inflation.

A dramatic increase in the birth rate will have an immediate effect on the demand for housing but will have no long-range effect.

Under federal tax laws that allow homeowners to deduct mortgage loan interest, what would be the after-tax cost to a homeowner in the 28 percent tax bracket of a home mortgage loan made at a 12 percent rate of interest?

Choose the one most appropriate answer for each. -results from increasing the money supply faster than increases in goods and services to buy

The ECOA has contributed to greater numbers of homeowners among

Which has the greatest effect upon the interest rate an individual must pay for a real estate mortgage loan?

Choose the one most appropriate answer for each. -higher prices due to increased costs of labor and supplies

The existence of a base industry is essential to the maintenance of local real estate values.

Higher prices due to buyers bidding against each other causes ____________________ inflation.

Nature and Description of Real Estate

Rights and Interests in Land

Forms of Ownership

Transferring Title

Recordation Abstracts and Title Insurance

Contract Law

Real Estate Sales Contracts

Mortgage and Note

Deed of Trust

Lending Practices

The Loan and the Consumer

Sources of Financing

Types of Financing

Taxes and Assessments

Title Closing and Escrow

Real Estate Leases

Real Estate Appraisal

Licensing Laws and Professional Affiliation

The Principal-Broker Relationship: Employment

The Principal-Broker Relationship: Agency

Fair Housing, Ada, Equal Credit, and Community Reinvestment

Condominiums, Cooperatives, Puds, and Timeshares

Property Insurance

Land-Use Control

Investing in Real Estate

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