K
C
LO
YC
CHAMPIONS REAL ESTATE
FINANCE EXAM QUESTIONS
D
WITH CORRECT ANSWERS
U
ALL VERIFIED BY AN EXPERT
ST
A+ GRADED (LATEST UPDATE)
,_____ is the consummation of a contractual real estate transaction in which all appropriate
documents are signed, and the mortgage loan proceeds are disbursed by the lender. - ANS
Closing
The primary determinants of real estate values are supply and _____. - ANS Demand
_____ is something of value that can be pledged as security for repayment of a loan. - ANS
Collateral
K
Servicing includes which of the following activities? - ANS Maintaining records of payment
C
The monetary policies of the _____affects interest rates and the availability of funds. - ANS
Federal Reserve
LO
An excess supply of money in the market results in monetary _____. - ANS Inflation
Which agency insures deposits in banks and thrift institutions for up to $250,000? - ANS The
Federal Deposit Insurance Corporation
YC
The _____ is the interest rate a reserve bank charges eligible financial institutions to borrow
funds on a short-term basis. - ANS Discount rate
Raising taxes and increasing borrowing are two ways at the treasury level to: - ANS Raise
funds to pay for government spending
D
The Fed uses three primary monetary policy tools to influence the cost and availability of credit:
open market operations, the discount rate, and _____. - ANS Reserve requirements
U
When the costs of production and services increase, causing manufacturing prices to rise, it is
called _____. - ANS Cost-push inflation
ST
Which of the following transactions is exempt from RESPA? - ANS Temporary loans
Under the _____, the use of certain terms in an advertisement triggers the need for full
disclosure of lending terms. - ANS Truth in Lending Act
The Dodd-Frank Wall Street Reform and Consumer Protection Act established the _____. -
ANS Consumer Financial Protection Bureau
How can Sylvia ensure that Victor is properly licensed as an RMLO? - ANS She can look him
up in the NMLSR
, The secondary mortgage market was designed to provide greater liquidity to the residential real
estate market, primarily by _____. - ANS The sale of mortgage loans as investments
The secondary market exists for the purchase and sale of existing ____________ to investors. -
ANS mortgages
The FHFA placed Fannie Mae and Freddie Mac in ____________ in 2008. - ANS
conservatorship
____________ established Farmer Mac in 1987. - ANS congress
K
Fannie Mae operates exclusively in the ____________ market - ANS secondary
C
A ____________ represents the money earned on an investment - ANS yield
____________ and ____________ are government-sponsored enterprises - ANS fannie
LO
mae, freddie mac
The secondary market is designed to provide greater ____________ to the residential real
estate market. - ANS liquidity
YC
Farmer Mac is regulated, ____________, and ____________ by the Farm Credit Administration
through its Office of Secondary Market Oversight. - ANS examined, supervised
When funds are withdrawn from one arena and moved to another, the process is known as
____________. - ANS disintermediation
D
A loan that is originated to adhere to Fannie Mae and Freddie Mac requirements for purchase is
known as a ____________ loan. - ANS conforming
U
With few exceptions, the law requires that the VA be paid a(n) ____________ on guaranteed
loans. - ANS funding fee
ST
Home Equity Conversion Mortgages (HECM) allow ____________ to convert the equity in their
home to cash. - ANS seniors
VA loans are made by a ____________, such as a mortgage company, savings and loan, or a
bank. - ANS lender
____________ income is the amount of money that is left over each month after all of the
borrower's major expenses are paid - including housing, taxes, and debt payments. - ANS
residual
C
LO
YC
CHAMPIONS REAL ESTATE
FINANCE EXAM QUESTIONS
D
WITH CORRECT ANSWERS
U
ALL VERIFIED BY AN EXPERT
ST
A+ GRADED (LATEST UPDATE)
,_____ is the consummation of a contractual real estate transaction in which all appropriate
documents are signed, and the mortgage loan proceeds are disbursed by the lender. - ANS
Closing
The primary determinants of real estate values are supply and _____. - ANS Demand
_____ is something of value that can be pledged as security for repayment of a loan. - ANS
Collateral
K
Servicing includes which of the following activities? - ANS Maintaining records of payment
C
The monetary policies of the _____affects interest rates and the availability of funds. - ANS
Federal Reserve
LO
An excess supply of money in the market results in monetary _____. - ANS Inflation
Which agency insures deposits in banks and thrift institutions for up to $250,000? - ANS The
Federal Deposit Insurance Corporation
YC
The _____ is the interest rate a reserve bank charges eligible financial institutions to borrow
funds on a short-term basis. - ANS Discount rate
Raising taxes and increasing borrowing are two ways at the treasury level to: - ANS Raise
funds to pay for government spending
D
The Fed uses three primary monetary policy tools to influence the cost and availability of credit:
open market operations, the discount rate, and _____. - ANS Reserve requirements
U
When the costs of production and services increase, causing manufacturing prices to rise, it is
called _____. - ANS Cost-push inflation
ST
Which of the following transactions is exempt from RESPA? - ANS Temporary loans
Under the _____, the use of certain terms in an advertisement triggers the need for full
disclosure of lending terms. - ANS Truth in Lending Act
The Dodd-Frank Wall Street Reform and Consumer Protection Act established the _____. -
ANS Consumer Financial Protection Bureau
How can Sylvia ensure that Victor is properly licensed as an RMLO? - ANS She can look him
up in the NMLSR
, The secondary mortgage market was designed to provide greater liquidity to the residential real
estate market, primarily by _____. - ANS The sale of mortgage loans as investments
The secondary market exists for the purchase and sale of existing ____________ to investors. -
ANS mortgages
The FHFA placed Fannie Mae and Freddie Mac in ____________ in 2008. - ANS
conservatorship
____________ established Farmer Mac in 1987. - ANS congress
K
Fannie Mae operates exclusively in the ____________ market - ANS secondary
C
A ____________ represents the money earned on an investment - ANS yield
____________ and ____________ are government-sponsored enterprises - ANS fannie
LO
mae, freddie mac
The secondary market is designed to provide greater ____________ to the residential real
estate market. - ANS liquidity
YC
Farmer Mac is regulated, ____________, and ____________ by the Farm Credit Administration
through its Office of Secondary Market Oversight. - ANS examined, supervised
When funds are withdrawn from one arena and moved to another, the process is known as
____________. - ANS disintermediation
D
A loan that is originated to adhere to Fannie Mae and Freddie Mac requirements for purchase is
known as a ____________ loan. - ANS conforming
U
With few exceptions, the law requires that the VA be paid a(n) ____________ on guaranteed
loans. - ANS funding fee
ST
Home Equity Conversion Mortgages (HECM) allow ____________ to convert the equity in their
home to cash. - ANS seniors
VA loans are made by a ____________, such as a mortgage company, savings and loan, or a
bank. - ANS lender
____________ income is the amount of money that is left over each month after all of the
borrower's major expenses are paid - including housing, taxes, and debt payments. - ANS
residual
