MCKISSOCK BASIC APPRAISAL END OF COURSE 2026
QUESTIONS AND SOLUTIONS SCORED A+
✔✔"A market in which buyers have the advantage; exists when market prices are
relatively low due to an oversupply of property or reduced buyer demand" is the
definition of a(n) ___________ market.
buyer's
seller's
active
depressed - ✔✔Buyers
✔✔"An active market in which the sellers of available properties can obtain higher
prices than those obtainable in the immediately preceding period; a market in which a
few available properties are demanded at prevailing prices by many users and potential
users" is the definition of a(n) __________ market.
buyer's
seller's
declining
depressed - ✔✔Sellers
✔✔Real property is unique as an economic good in that it is
immovable
impossible to finance
stably priced
homogeneous - ✔✔Immovable
✔✔"A market in which a drop in demand is accompanied by a relative oversupply and a
decline in prices" is the definition of a(n) ____________ market.
depressed
seller's
active
none of the above - ✔✔Depressed
✔✔True or False? The burden of managing the investment is one of the reasons why
real property investors typically demand higher yields. - ✔✔True
✔✔You are an investor who owns a parcel of real property. You want to cash out your
investment, and it takes you a year to market your property and close the sale. What
investment factor does this demonstrate?
favorable tax treatment
safety
liquidity
easement - ✔✔liquidity
,✔✔Which type of purchaser is more likely to pay more attention to the amenities of a
property, such as a pool, a horse stable, or a nice view?
owner-occupant buyer
investor
both an owner-occupant and an investor would look at a property exactly the same -
✔✔owner-occupant buyer
✔✔Which is NOT a short-term money instrument?
one year Treasury bill
one year Treasury Note
7 year CD
5 year balloon mortgage - ✔✔5 year balloon mortgage
✔✔Which of the following is NOT a commodity?
gold
real estate
money
market area - ✔✔Market area
✔✔Who appoints members to the Federal Reserve Board?
they are elected by public vote
the Secretary of the Treasury
the FRB chairperson
the President of the U.S. - ✔✔The President of the U.S.
✔✔Which of the following typically generates the highest return on investment?
savings account
money market
certificate of deposit
real estate - ✔✔Real Estate
✔✔The supply of money in the U.S. is regulated by
Congress
the Treasury Department
the Fed
the President - ✔✔The Fed
✔✔When was the Fed founded?
1913
1939
1943
1961 - ✔✔1913
✔✔The capital market deals in all of the following EXCEPT
, real estate
mortgages
bonds
stocks - ✔✔Real estate
✔✔"The Federal Reserve's efforts to influence the level of economic activity by
regulating the availability of money and the rate of interest" is the definition of
money policy
monetary policy
protectionism
arbitrage - ✔✔monetary policy
✔✔The return ON investment is usually accomplished through
net worth
refinancing
resale
interest payments - ✔✔interest payments
✔✔The rate that banks employ when lending money to their highest rated customers is
called the __________ rate.
preferred
prime
super
insider - ✔✔Prime
✔✔Fannie Mae purchases ______ loans on the secondary market. - ✔✔
✔✔Fannie Mae purchases ______ loans on the secondary market.
conventional
VA
FHA
all of these - ✔✔All of these
✔✔What type of loans are assumable without the permission of the lender?
VA loans only
FHA loans only
VA and FHA loans
Very few loans of any type are assumable without lender permission - ✔✔Very few
loans of any type are assumable without lender permission
✔✔True or False? Fannie Mae and Freddie Mac are now defunct. - ✔✔False
✔✔True or False? FHA charges a mortgage insurance premium to borrowers. - ✔✔True
QUESTIONS AND SOLUTIONS SCORED A+
✔✔"A market in which buyers have the advantage; exists when market prices are
relatively low due to an oversupply of property or reduced buyer demand" is the
definition of a(n) ___________ market.
buyer's
seller's
active
depressed - ✔✔Buyers
✔✔"An active market in which the sellers of available properties can obtain higher
prices than those obtainable in the immediately preceding period; a market in which a
few available properties are demanded at prevailing prices by many users and potential
users" is the definition of a(n) __________ market.
buyer's
seller's
declining
depressed - ✔✔Sellers
✔✔Real property is unique as an economic good in that it is
immovable
impossible to finance
stably priced
homogeneous - ✔✔Immovable
✔✔"A market in which a drop in demand is accompanied by a relative oversupply and a
decline in prices" is the definition of a(n) ____________ market.
depressed
seller's
active
none of the above - ✔✔Depressed
✔✔True or False? The burden of managing the investment is one of the reasons why
real property investors typically demand higher yields. - ✔✔True
✔✔You are an investor who owns a parcel of real property. You want to cash out your
investment, and it takes you a year to market your property and close the sale. What
investment factor does this demonstrate?
favorable tax treatment
safety
liquidity
easement - ✔✔liquidity
,✔✔Which type of purchaser is more likely to pay more attention to the amenities of a
property, such as a pool, a horse stable, or a nice view?
owner-occupant buyer
investor
both an owner-occupant and an investor would look at a property exactly the same -
✔✔owner-occupant buyer
✔✔Which is NOT a short-term money instrument?
one year Treasury bill
one year Treasury Note
7 year CD
5 year balloon mortgage - ✔✔5 year balloon mortgage
✔✔Which of the following is NOT a commodity?
gold
real estate
money
market area - ✔✔Market area
✔✔Who appoints members to the Federal Reserve Board?
they are elected by public vote
the Secretary of the Treasury
the FRB chairperson
the President of the U.S. - ✔✔The President of the U.S.
✔✔Which of the following typically generates the highest return on investment?
savings account
money market
certificate of deposit
real estate - ✔✔Real Estate
✔✔The supply of money in the U.S. is regulated by
Congress
the Treasury Department
the Fed
the President - ✔✔The Fed
✔✔When was the Fed founded?
1913
1939
1943
1961 - ✔✔1913
✔✔The capital market deals in all of the following EXCEPT
, real estate
mortgages
bonds
stocks - ✔✔Real estate
✔✔"The Federal Reserve's efforts to influence the level of economic activity by
regulating the availability of money and the rate of interest" is the definition of
money policy
monetary policy
protectionism
arbitrage - ✔✔monetary policy
✔✔The return ON investment is usually accomplished through
net worth
refinancing
resale
interest payments - ✔✔interest payments
✔✔The rate that banks employ when lending money to their highest rated customers is
called the __________ rate.
preferred
prime
super
insider - ✔✔Prime
✔✔Fannie Mae purchases ______ loans on the secondary market. - ✔✔
✔✔Fannie Mae purchases ______ loans on the secondary market.
conventional
VA
FHA
all of these - ✔✔All of these
✔✔What type of loans are assumable without the permission of the lender?
VA loans only
FHA loans only
VA and FHA loans
Very few loans of any type are assumable without lender permission - ✔✔Very few
loans of any type are assumable without lender permission
✔✔True or False? Fannie Mae and Freddie Mac are now defunct. - ✔✔False
✔✔True or False? FHA charges a mortgage insurance premium to borrowers. - ✔✔True
