Alabama Post-License Exam
Which of the following best defines Risk? - ANSWER The chance of experiencing a
loss.
Unexpected inflations can diminish an investor's rate of return if the income does not
increase enough to make up for the effect of the inflation. This risk is known as -
ANSWER Inflation Risk
The ______ is based on the idea that money available at the present time is worth
more then in the future, due to it's potential earning capacity. - ANSWER Time value
of the money.
Which type of retail center is anchored by three or more full-line department stores? -
ANSWER Mega Mall
What Type of office buildings are usually one or two stories that can accommodate
warehouse and industrial activities in addition to offices? - ANSWER Flex Space
Office Buildings.
Which of the following is not a type of industrial properties? - ANSWER Corporate
headquarters.
Which of this is an advantage of investing in a single-family home? - ANSWER The
market for single-family investment homes will not be inundated with competitive
rentals.
What is the primary advantage/s of owning a condominium as an investment
property? - ANSWER Condos are easy to rent and condo's association provides
exterior and ground maintenance.
Which of the following is an advantage of investing in a two-to-four unit dwelling? -
ANSWER Tenants often pay for their own utilities and repairs.
What is the concept of using other people's money for investing? - ANSWER
Leverage
What risk occurs when the real estate market is slow with not many buyers, sellers,
or transactions? - ANSWER Liquidity Risk
Which of the following is NOT a way investors can realize profits in real estate? -
ANSWER Inflation
The government is most likely to pass rent controlled laws on which kind of property?
- ANSWER Apartment Buildings
What type of properties have total of leasable area of up to 30,000 SQF and are
usually anchored by a convince store, such as minimarket? - ANSWER Strip Center
Which of the following best defines Risk? - ANSWER The chance of experiencing a
loss.
Unexpected inflations can diminish an investor's rate of return if the income does not
increase enough to make up for the effect of the inflation. This risk is known as -
ANSWER Inflation Risk
The ______ is based on the idea that money available at the present time is worth
more then in the future, due to it's potential earning capacity. - ANSWER Time value
of the money.
Which type of retail center is anchored by three or more full-line department stores? -
ANSWER Mega Mall
What Type of office buildings are usually one or two stories that can accommodate
warehouse and industrial activities in addition to offices? - ANSWER Flex Space
Office Buildings.
Which of the following is not a type of industrial properties? - ANSWER Corporate
headquarters.
Which of this is an advantage of investing in a single-family home? - ANSWER The
market for single-family investment homes will not be inundated with competitive
rentals.
What is the primary advantage/s of owning a condominium as an investment
property? - ANSWER Condos are easy to rent and condo's association provides
exterior and ground maintenance.
Which of the following is an advantage of investing in a two-to-four unit dwelling? -
ANSWER Tenants often pay for their own utilities and repairs.
What is the concept of using other people's money for investing? - ANSWER
Leverage
What risk occurs when the real estate market is slow with not many buyers, sellers,
or transactions? - ANSWER Liquidity Risk
Which of the following is NOT a way investors can realize profits in real estate? -
ANSWER Inflation
The government is most likely to pass rent controlled laws on which kind of property?
- ANSWER Apartment Buildings
What type of properties have total of leasable area of up to 30,000 SQF and are
usually anchored by a convince store, such as minimarket? - ANSWER Strip Center
