PSI EXAM ( salesperson) QUESTIONS WITH COMPLETE SOLUTIONS

Federal Truth-in-Lending laws are also known as correct answer: Regulation Z A salesperson qualified a minority couple with two children and defined their price range as between $110,000 and $120,000 for the three-bedroom house they wanted. They asked to look at two listings in a nonminority neighborhood. The salesperson did not show them the properties because they were priced under $90,000 and had only two small bedrooms. Did the salesperson act appropriately and why or why not? correct answer: No, because it is appropriate to show any property for which the buyer is qualified. An environmental impact statement typically describes the effects of a proposed project on factors such as correct answer: public health and safety When a principal authorizes an agent to perform a particular act or transaction, it is an example of a correct answer: special agency If an older building cannot be air-conditioned, it is an example of correct answer: functional obsolescence If a borrower can afford to make monthly principal and interest payments of $1,000 and the lender will make a 30-year loan at 5-1/2%, or a 20-year loan at 4-1/2%, what is the largest loan (rounded to the nearest $100) this buyer can afford? (BE SURE TO USE THE AMORTIZATION TABLE.) correct answer: $176,100 for 5.5% 30 yr 1000/5.67789 = 176. 176. x1000 = $176,100 for 4.5% 20 yr