Test bank TĐG for Real Estate
Valuation Exam Preparation
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3/3/25
1. When viewed as a tangible asset, real estate can be defined as the land and its
permanent improvements. Improvements on the land include
A. fences
B. walkways
C. sewer systems
D. streets
Fences
. Real estate is property, which can be either a tangible or an intangible asset.
Which of the following would be considered an intangible asset?
A. Land
B. Building
C. Mortgage
D. Fence
Mortgage
If we desire to classify land by its use, land that does not include any
improvements to the land would be categorized as:
A. "Raw" land
B. Building site
C. Developed land
D. Property infrastructure
Raw land
. The size of a single family residential lot is typically:
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A. less than one acre
B. between one and two acres
C. between two and three acres
D. greater than three
acres Less than one acre
As of 2011, the single largest asset category in the net worth portfolios of
households
is:
A. government and corporate bonds
B. stocks and mutual fund shares
C. consumer durable goods
D. housing'
Housing
Real estate values derive from the interaction of three different sectors in the
economy. Which of the following sectors serves to allocate financial resources
among households and firms requiring funds?
A. User market
B. Capital market
C. Government
D. Property
market Capital
market
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3/3/25
The demand for real estate derives from the need that market participants (e.g.,
owner occupants, tenants, renters) have for shelter and convenient access to
other locations. This competition for physical location and space occurs in the:
A. User Market
B. Capital Market
C. Government Sector
D. Property
Market User
market
The expected stream of rental income is capitalized into value by converting
expected future cash flows into present value through a process called:
A. amortization
B. discounting
C. compounding
D. accounting
Discounting
Capital markets can be divided into four main categories: private equity, public
equity, private debt, and public debt. An example of a real estate asset that
trades in the private equity market is:
A. real property
B. home mortgages
C. equity REITs
D. mortgage backed securities
Real property
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Valuation Exam Preparation
,12:01
3/3/25
1. When viewed as a tangible asset, real estate can be defined as the land and its
permanent improvements. Improvements on the land include
A. fences
B. walkways
C. sewer systems
D. streets
Fences
. Real estate is property, which can be either a tangible or an intangible asset.
Which of the following would be considered an intangible asset?
A. Land
B. Building
C. Mortgage
D. Fence
Mortgage
If we desire to classify land by its use, land that does not include any
improvements to the land would be categorized as:
A. "Raw" land
B. Building site
C. Developed land
D. Property infrastructure
Raw land
. The size of a single family residential lot is typically:
1/55
,12:01
3/3/25
A. less than one acre
B. between one and two acres
C. between two and three acres
D. greater than three
acres Less than one acre
As of 2011, the single largest asset category in the net worth portfolios of
households
is:
A. government and corporate bonds
B. stocks and mutual fund shares
C. consumer durable goods
D. housing'
Housing
Real estate values derive from the interaction of three different sectors in the
economy. Which of the following sectors serves to allocate financial resources
among households and firms requiring funds?
A. User market
B. Capital market
C. Government
D. Property
market Capital
market
2/55
, 12:01
3/3/25
The demand for real estate derives from the need that market participants (e.g.,
owner occupants, tenants, renters) have for shelter and convenient access to
other locations. This competition for physical location and space occurs in the:
A. User Market
B. Capital Market
C. Government Sector
D. Property
Market User
market
The expected stream of rental income is capitalized into value by converting
expected future cash flows into present value through a process called:
A. amortization
B. discounting
C. compounding
D. accounting
Discounting
Capital markets can be divided into four main categories: private equity, public
equity, private debt, and public debt. An example of a real estate asset that
trades in the private equity market is:
A. real property
B. home mortgages
C. equity REITs
D. mortgage backed securities
Real property
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