THE CE SHOP FINAL LATEST
EXAM PROCTOR
Why is debt reduction recommended when preparing to obtain
financing?
Builds discipline
Improves credit score
Increases loan-to-value ratio
Lowers your cash reserves - ANSWERS-Improves credit score
Debt reduction improves credit scores. It also improves the debt-to-
income ratio of the borrower.
Which agency is responsible for administering and regulating real estate
licenses in Maryland?
Maryland Real Estate Commission
The Department of Labor
U.S. Department of Education
U.S. Department of Labor - ANSWERS-Maryland Real Estate
Commission
END OF
PAGE
1
, THE CE SHOP FINAL LATEST
EXAM PROCTOR
What does the rectangular survey system use as the basis for legal
descriptions?
Principal meridians, base lines, and sections
Reference to a subdivision plat
Reference to degrees latitude and longitude
The beginning point of a boundary line as identified by a surveyor -
ANSWERS-Principal meridians, base lines, and sections
When banks have lots of funds available for lending, what tends to
happen to interest rates?
Rates decrease.
Rates fluctuate, both up and down.
Rates increase.
Rates stay the same. - ANSWERS-Rates decrease.
A negotiable instrument must contain an order to pay or a ________.
END OF
PAGE
2
, THE CE SHOP FINAL LATEST
EXAM PROCTOR
Flexible sum of money
Hand written signature
Notary stamp
Promise to pay - ANSWERS-Promise to pay
What type of agency exists because of the actions and behavior of the
parties?
Action agency
Behavioral agency
Express agency
Implied agency - ANSWERS-Implied agency
Which entity ensures that contractors perform their work according to
code by inspecting their job sites?
City hall
The attorney general
END OF
PAGE
3
, THE CE SHOP FINAL LATEST
EXAM PROCTOR
The building department
The secretary of state - ANSWERS-The building department
The secondary mortgage market is comprised of
_________________________.
FNMA, GNMA, FHLMC, & lending institutions that buy loans from
other lenders
Lending institutions that lend directly to consumers
Savings and loans, thrifts, and credit unions
The VA and the FHA - ANSWERS-FNMA, GNMA, FHLMC, and
lending institutions that buy loans from other lenders
The secondary market is where loans are resold.
What is the highest penalty an unlicensed individual practicing real
estate may be fined for more than two offenses?
$10,000 per violation
END OF
PAGE
4
EXAM PROCTOR
Why is debt reduction recommended when preparing to obtain
financing?
Builds discipline
Improves credit score
Increases loan-to-value ratio
Lowers your cash reserves - ANSWERS-Improves credit score
Debt reduction improves credit scores. It also improves the debt-to-
income ratio of the borrower.
Which agency is responsible for administering and regulating real estate
licenses in Maryland?
Maryland Real Estate Commission
The Department of Labor
U.S. Department of Education
U.S. Department of Labor - ANSWERS-Maryland Real Estate
Commission
END OF
PAGE
1
, THE CE SHOP FINAL LATEST
EXAM PROCTOR
What does the rectangular survey system use as the basis for legal
descriptions?
Principal meridians, base lines, and sections
Reference to a subdivision plat
Reference to degrees latitude and longitude
The beginning point of a boundary line as identified by a surveyor -
ANSWERS-Principal meridians, base lines, and sections
When banks have lots of funds available for lending, what tends to
happen to interest rates?
Rates decrease.
Rates fluctuate, both up and down.
Rates increase.
Rates stay the same. - ANSWERS-Rates decrease.
A negotiable instrument must contain an order to pay or a ________.
END OF
PAGE
2
, THE CE SHOP FINAL LATEST
EXAM PROCTOR
Flexible sum of money
Hand written signature
Notary stamp
Promise to pay - ANSWERS-Promise to pay
What type of agency exists because of the actions and behavior of the
parties?
Action agency
Behavioral agency
Express agency
Implied agency - ANSWERS-Implied agency
Which entity ensures that contractors perform their work according to
code by inspecting their job sites?
City hall
The attorney general
END OF
PAGE
3
, THE CE SHOP FINAL LATEST
EXAM PROCTOR
The building department
The secretary of state - ANSWERS-The building department
The secondary mortgage market is comprised of
_________________________.
FNMA, GNMA, FHLMC, & lending institutions that buy loans from
other lenders
Lending institutions that lend directly to consumers
Savings and loans, thrifts, and credit unions
The VA and the FHA - ANSWERS-FNMA, GNMA, FHLMC, and
lending institutions that buy loans from other lenders
The secondary market is where loans are resold.
What is the highest penalty an unlicensed individual practicing real
estate may be fined for more than two offenses?
$10,000 per violation
END OF
PAGE
4
