Question 1

A future is a type of forward contract that is standardized usually in terms of
​
All of these.

Accepted Answer

A) size of contract. 
B) quality of product to be delivered. 
C) delivery date. 
D) All of these. 
A) size of contract. 
B) quality of product to be delivered. 
C) delivery date. 
D) All of these.

Question 2

Futures contracts usually focus on all of the following except

Accepted Answer

A) soybeans. 
B) orange juice. 
C) rubber. 
D) coffee. 
A) soybeans. 
B) orange juice. 
C) rubber. 
D) coffee.

Question 3

An effective way to estimate the value or asking price of a real estate investment is by using the

Accepted Answer

A) discounted cash-flow method. 
B) break-even price. 
C) REIT. 
D) call option. 
A) discounted cash-flow method. 
B) break-even price. 
C) REIT. 
D) call option.

Question 4

Which of the following is not correct about collectibles?

Accepted Answer

A) They do not pay current income. 
B) Some investors must pay storage fees. 
C) Precious metals and stones can be bought from telemarketers. 
D) Scams and frauds are nearly nonexistent. 
A) They do not pay current income. 
B) Some investors must pay storage fees. 
C) Precious metals and stones can be bought from telemarketers. 
D) Scams and frauds are nearly nonexistent.

Question 5

A(n) ____ is a contract that gives its holder the right to buy or sell an asset at a specified price.

Accepted Answer

A) option 
B) futures contract 
C) zero-sum game 
D) strike price 
A) option 
B) futures contract 
C) zero-sum game 
D) strike price

Question 6

____ would not be included in a list of high-risk investments.

Accepted Answer

A) Gold 
B) Rare coins 
C) Treasury securities 
D) Diamonds 
A) Gold 
B) Rare coins 
C) Treasury securities 
D) Diamonds

Question 7

Projected gross income for an income-producing real estate investment is computed as

Accepted Answer

A) gross rental income less taxes. 
B) gross rental income less depreciation expense. 
C) gross rental income less operating expenses. 
D) gross rental income less vacancies and unpaid rent. 
A) gross rental income less taxes. 
B) gross rental income less depreciation expense. 
C) gross rental income less operating expenses. 
D) gross rental income less vacancies and unpaid rent.

Question 8

If the market price of an asset rises to exceed the striking price plus the premium,the holder could make a substantial profit.

Accepted Answer

A) True 
 B)False

Question 9

Real estate does not include

Accepted Answer

A) land. 
B) permanent structures. 
C) furniture. 
D) mineral rights. 
A) land. 
B) permanent structures. 
C) furniture. 
D) mineral rights.

Question 10

Raw land and residential lots are the safest forms of real estate investment.

Accepted Answer

A) True 
 B)False

Question 11

Investors in real estate enjoy a high level of liquidity.

Accepted Answer

A) True 
 B)False

Question 12

The advantages of real estate investing do not include

Accepted Answer

A) a potential positive cash flow. 
B) a potential for price appreciation. 
C) the availability of leverage. 
D) a high level of liquidity. 
A) a potential positive cash flow. 
B) a potential for price appreciation. 
C) the availability of leverage. 
D) a high level of liquidity.

Question 13

Advantages of real estate investing include

Accepted Answer

A) low financial risk. 
B) simplicity compared to alternative investments. 
C) minimal time requirement to manage. 
D) None of these. 
A) low financial risk. 
B) simplicity compared to alternative investments. 
C) minimal time requirement to manage. 
D) None of these.

Question 14

A crude rate of return is a rough measure of the yield on amounts invested that assumes that equal portions of the gain are earned each year.

Accepted Answer

A) True 
 B)False

Question 15

Deeded timesharing provides buyers with actual titles and deeds to limited time periods of use of real estate.

Accepted Answer

A) True 
 B)False

Question 16

Which is not a characteristic of a true timeshare arrangement?

Accepted Answer

A) Provides a long-term lease 
B) Right-to-use purchase 
C) Can be locked out of the premises by the creditors 
D) Grants legal real estate ownership to the purchaser 
A) Provides a long-term lease 
B) Right-to-use purchase 
C) Can be locked out of the premises by the creditors 
D) Grants legal real estate ownership to the purchaser

Question 17

Most of the total return from a real estate investment usually comes from

Accepted Answer

A) high mortgage rates. 
B) cash flow. 
C) price appreciation. 
D) capital improvements. 
A) high mortgage rates. 
B) cash flow. 
C) price appreciation. 
D) capital improvements.

Question 18

____ are cultural artifacts that have value because of their beauty,age,scarcity,or popularity.

Accepted Answer

A) Collectibles 
B) Options 
C) Calls 
D) Puts 
A) Collectibles 
B) Options 
C) Calls 
D) Puts

Question 19

Most investors prefer to show a negative cash flow on a real estate investment.

Accepted Answer

A) True 
 B)False

Question 20

Speculative investments have the potential for significant fluctuations in return,sometimes over short time periods.

Accepted Answer

A) True 
 B)False

A future is a type of forward contract that is standardized usually in terms of All of these.

Futures contracts usually focus on all of the following except

An effective way to estimate the value or asking price of a real estate investment is by using the

Which of the following is not correct about collectibles?

A(n) ____ is a contract that gives its holder the right to buy or sell an asset at a specified price.

____ would not be included in a list of high-risk investments.

Projected gross income for an income-producing real estate investment is computed as

If the market price of an asset rises to exceed the striking price plus the premium,the holder could make a substantial profit.

Real estate does not include

Raw land and residential lots are the safest forms of real estate investment.

Investors in real estate enjoy a high level of liquidity.

The advantages of real estate investing do not include

Advantages of real estate investing include

A crude rate of return is a rough measure of the yield on amounts invested that assumes that equal portions of the gain are earned each year.

Deeded timesharing provides buyers with actual titles and deeds to limited time periods of use of real estate.

Which is not a characteristic of a true timeshare arrangement?

Most of the total return from a real estate investment usually comes from

____ are cultural artifacts that have value because of their beauty,age,scarcity,or popularity.

Most investors prefer to show a negative cash flow on a real estate investment.

Speculative investments have the potential for significant fluctuations in return,sometimes over short time periods.

Understanding Personal Finance

Career Planning

Financial Statements,tools,and Budgets

Managing Income Taxes

Managing Checking and Savings Accounts

Building and Maintaining Good Credit

Credit Cards and Consumer Loans

Vehicles and Other Major Purchases

Obtaining Affordable Housing

Managing Property and Liability Risk

Managing Health Expenses

Life Insurance Planning

Investment Fundamentals

Investing in Stocks and Bonds

Mutual Funds and Exchange Traded Funds

Retirement and Estate Planning

Filters

Exam 16: Real Estate and High-Risk Investments

A future is a type of forward contract that is standardized usually in terms of ​ All of these.

Futures contracts usually focus on all of the following except

An effective way to estimate the value or asking price of a real estate investment is by using the

Which of the following is not correct about collectibles?

A(n) ____ is a contract that gives its holder the right to buy or sell an asset at a specified price.

____ would not be included in a list of high-risk investments.

Projected gross income for an income-producing real estate investment is computed as

If the market price of an asset rises to exceed the striking price plus the premium,the holder could make a substantial profit.

Real estate does not include

Raw land and residential lots are the safest forms of real estate investment.

Investors in real estate enjoy a high level of liquidity.

The advantages of real estate investing do not include

Advantages of real estate investing include

A crude rate of return is a rough measure of the yield on amounts invested that assumes that equal portions of the gain are earned each year.

Deeded timesharing provides buyers with actual titles and deeds to limited time periods of use of real estate.

Which is not a characteristic of a true timeshare arrangement?

Most of the total return from a real estate investment usually comes from

____ are cultural artifacts that have value because of their beauty,age,scarcity,or popularity.

Most investors prefer to show a negative cash flow on a real estate investment.

Speculative investments have the potential for significant fluctuations in return,sometimes over short time periods.

Understanding Personal Finance

Career Planning

Financial Statements,tools,and Budgets

Managing Income Taxes

Managing Checking and Savings Accounts

Building and Maintaining Good Credit

Credit Cards and Consumer Loans

Vehicles and Other Major Purchases

Obtaining Affordable Housing

Managing Property and Liability Risk

Managing Health Expenses

Life Insurance Planning

Investment Fundamentals

Investing in Stocks and Bonds

Mutual Funds and Exchange Traded Funds

Retirement and Estate Planning

Filters

A future is a type of forward contract that is standardized usually in terms of All of these.