MCKISSOCK BASIC APPRAISAL
PRINCIPLES CERTIFICATION EXAM
QUESTIONS AND ANSWERS
market neighborhood - Answer-group of complementary land uses, congrugous
grouping of inhabitants
district - Answer-neighborhood characterized by homo land use
market area - Answer-geographic region from which a majority of demand comes and in
which the majority of competition is located
amenity - Answer-benefit of real estate that enhances attractiveness of the user
real estate money demand - Answer-Currency plus demand and time deposits plus the
liabilities of nonbank financial intermediaries
monetary policy - Answer-efforts by a central bank such as the FED in the US to
influence economic activity by regulating availability of money and rate of interest
money market - Answer-interaction of buyers and sellers who trade short term money
instruments
capital market - Answer-interaction of buyers and sellers trading long- or intermediate-
term money instruments
secondary money market - Answer-created by govt. and private agencies for the
purchase and sale of existing mortgages making mortgages more liqud
contract on deed - Answer-contract in which a purchaser of real estate agrees to pay a
small portion of the purchase price when the contract is signed and additional sums
conventional loan - Answer-mortgage that is neither insured or guaranteed by an
agency of the federal govt although it may be privately insured
guaranteed mortgage - Answer-a party other than the borrower assures payment in the
event of default
insured mortgage - Answer-a party other than the borrower assures payment on default
by the mortgagor in return for the payment of a premium
first mortgage - Answer-has priority over all other mortgage liens on a property
, junior lien - Answer-lien placed on property after a previous lien has been made and
recorded
amoritization - Answer-process of retiring a debt or recovering a capital investment
typically through scheduled systematic repayment of the principal
fixed rate mortgage - Answer-A mortgage in which the interest rate does not change
during the entire term of the loan.
balloon mortgage - Answer-one that is not fully amortized at maturity and thus requires
a lump sum or balloon payment of the outstanding balance
graduated-payment mortgage (GPM) - Answer-debt secured by real property in which
mortgage payments are usually projected to match increases in the borrower's income
adjustable rate mortgages - Answer-debt secured by real property with an interest rate
that may move up or down
reverse mortgage - Answer-type of mortgage whereby age-qualified homeowners
systematically borrow against the equity in their homes, receiving regular (usually
monthly) payments from the lender
discount points - Answer-percentage of the loan amount that a lender charges a
borrower for making a loan
utility - Answer-ability of a product to satisfy a human want need or desire; the ability of
a property or building to be useful and to perform the function for which it is intended
according to current market taste and standards
scarcity - Answer-present or anticipated undersupply of an item relative to the demand
for it
effective purchasing power - Answer-ability of an individual or group to participate in a
market
external market forces - Answer-planning,zoning,building codes, envt restrictions, taxes,
utilities, transportation, education, cultural, parks and rec, police, fire protection, public
safety
National Oceanic and Atmospheric Administration - Answer-charged with monitoring
coastal habitats, such as estuaries and reefs. It also monitors development, water and
sediment contamination, water diversion for industrial, agricultural, sedimentation, and
dredging and filling activities.
PRINCIPLES CERTIFICATION EXAM
QUESTIONS AND ANSWERS
market neighborhood - Answer-group of complementary land uses, congrugous
grouping of inhabitants
district - Answer-neighborhood characterized by homo land use
market area - Answer-geographic region from which a majority of demand comes and in
which the majority of competition is located
amenity - Answer-benefit of real estate that enhances attractiveness of the user
real estate money demand - Answer-Currency plus demand and time deposits plus the
liabilities of nonbank financial intermediaries
monetary policy - Answer-efforts by a central bank such as the FED in the US to
influence economic activity by regulating availability of money and rate of interest
money market - Answer-interaction of buyers and sellers who trade short term money
instruments
capital market - Answer-interaction of buyers and sellers trading long- or intermediate-
term money instruments
secondary money market - Answer-created by govt. and private agencies for the
purchase and sale of existing mortgages making mortgages more liqud
contract on deed - Answer-contract in which a purchaser of real estate agrees to pay a
small portion of the purchase price when the contract is signed and additional sums
conventional loan - Answer-mortgage that is neither insured or guaranteed by an
agency of the federal govt although it may be privately insured
guaranteed mortgage - Answer-a party other than the borrower assures payment in the
event of default
insured mortgage - Answer-a party other than the borrower assures payment on default
by the mortgagor in return for the payment of a premium
first mortgage - Answer-has priority over all other mortgage liens on a property
, junior lien - Answer-lien placed on property after a previous lien has been made and
recorded
amoritization - Answer-process of retiring a debt or recovering a capital investment
typically through scheduled systematic repayment of the principal
fixed rate mortgage - Answer-A mortgage in which the interest rate does not change
during the entire term of the loan.
balloon mortgage - Answer-one that is not fully amortized at maturity and thus requires
a lump sum or balloon payment of the outstanding balance
graduated-payment mortgage (GPM) - Answer-debt secured by real property in which
mortgage payments are usually projected to match increases in the borrower's income
adjustable rate mortgages - Answer-debt secured by real property with an interest rate
that may move up or down
reverse mortgage - Answer-type of mortgage whereby age-qualified homeowners
systematically borrow against the equity in their homes, receiving regular (usually
monthly) payments from the lender
discount points - Answer-percentage of the loan amount that a lender charges a
borrower for making a loan
utility - Answer-ability of a product to satisfy a human want need or desire; the ability of
a property or building to be useful and to perform the function for which it is intended
according to current market taste and standards
scarcity - Answer-present or anticipated undersupply of an item relative to the demand
for it
effective purchasing power - Answer-ability of an individual or group to participate in a
market
external market forces - Answer-planning,zoning,building codes, envt restrictions, taxes,
utilities, transportation, education, cultural, parks and rec, police, fire protection, public
safety
National Oceanic and Atmospheric Administration - Answer-charged with monitoring
coastal habitats, such as estuaries and reefs. It also monitors development, water and
sediment contamination, water diversion for industrial, agricultural, sedimentation, and
dredging and filling activities.
