REAL ESTATE FINANCING LATEST EXAM 2025 | ALL
QUESTIONS AND WELL DETAILED ANSWERS |
ALREADY GRADED A+||NEWEST VERSION 2025/26
The face amount of a bond is the: -CORRECTANSWER Value of the bond at maturity
Which of the following are debt investments? -CORRECTANSWER Bonds
An investor who is interested in the amount of money an investment will produce is
primarily concerned about the investment's: -CORRECTANSWER Yield
One way an investor can minimize the likelihood of suffering serious losses on her
investments is to: -CORRECTANSWER Focus on investments with a high rate of return
Generally, the longer the loan term: -CORRECTANSWER The higher the risk of loss
A lender received a return on a mortgage loan in a form of: -CORRECTANSWER
Interest
Gina bought her house 5 yrs ago for $250000. She's decided to move to the country, so
she puts the house up for sale. Todd buys it for $375000. Gina's profit on the sale is the
result of : -CORRECTANSWER Appreciation
,Which of these types of investments has the slowest rate of capital turnover? -
CORRECTANSWER Real estate
Jenny has saved up $4000 over the past yr and she'd like to invest the money. She's
uncertain about the stability of her job, however, and she wants quick access to her
money in the event that she's laid off. -CORRECTANSWER Liquidity
To protect the yields they expect from their loans, mortgage lenders sometimes charge
a penalty for: -CORRECTANSWER Prepayment
The original principal amount of a mortgage loan is the: -CORRECTANSWER Amount
of the lender's investment
Someone who buys an asset or a property interest in an asset is making a/an: -
CORRECTANSWER Ownership investment
Mortgage loans are pooled together and sold on the secondary market as: -
CORRECTANSWER Mortgage backed securities
Which of the following is NOT true of market interest rates? -CORRECTANSWER High
market interest rates encourage refinancing
,Stocks and bonds are traded in specialized markets that are regulated by the: -
CORRECTANSWER Securities and Exchange Commission
Mortgage lenders screen loan applicants to evaluate the: -CORRECTANSWER Risk of
default
Risk of loss
Interest rate risk
A mortgage lender's risk of loss relates to: -CORRECTANSWER The likelihood that the
borrower will default on the loan
An investor invests money in expectation of a return on the investment. Depending on
the type of investment, the return may be anything of the following except: -
CORRECTANSWER Depreciation
A certificate of indebtedness issued by a governmental body or a corporation is a: -
CORRECTANSWER Bond
Which of the following statements about securities is true? -CORRECTANSWER
Securities give the holder a property interest or a right to payment
The federal government's actions in raising revenue, spending money, and managing
debt are referred to as: -CORRECTANSWER Fiscal policy
, A federal deficit occurs when, in a given year, the federal government: -
CORRECTANSWER Spends more than it receives in revenue
An unmarried homeowner may deduct mortgage interest on a loan to purchase a first or
second residence, up to a loan amount of: -CORRECTANSWER $1,000,000
Which of the following is a type of deduction that an owner of income-producing
property can take, but a homeowner can't? -CORRECTANSWER Depreciation
deduction
The Federal Reserve System was created through the: -CORRECTANSWER Federal
Reserve Act of 1913 and 1916
How many members of the Federal Reserve Board are there? -CORRECTANSWER 7
Frequent and widespread bank panics led to the creation of the: -CORRECTANSWER
Federal Deposit Insurance Corporation
Which of the following is NOT a tool the Federal Reserve System may use to influence
the economy? -CORRECTANSWER Tax rates
QUESTIONS AND WELL DETAILED ANSWERS |
ALREADY GRADED A+||NEWEST VERSION 2025/26
The face amount of a bond is the: -CORRECTANSWER Value of the bond at maturity
Which of the following are debt investments? -CORRECTANSWER Bonds
An investor who is interested in the amount of money an investment will produce is
primarily concerned about the investment's: -CORRECTANSWER Yield
One way an investor can minimize the likelihood of suffering serious losses on her
investments is to: -CORRECTANSWER Focus on investments with a high rate of return
Generally, the longer the loan term: -CORRECTANSWER The higher the risk of loss
A lender received a return on a mortgage loan in a form of: -CORRECTANSWER
Interest
Gina bought her house 5 yrs ago for $250000. She's decided to move to the country, so
she puts the house up for sale. Todd buys it for $375000. Gina's profit on the sale is the
result of : -CORRECTANSWER Appreciation
,Which of these types of investments has the slowest rate of capital turnover? -
CORRECTANSWER Real estate
Jenny has saved up $4000 over the past yr and she'd like to invest the money. She's
uncertain about the stability of her job, however, and she wants quick access to her
money in the event that she's laid off. -CORRECTANSWER Liquidity
To protect the yields they expect from their loans, mortgage lenders sometimes charge
a penalty for: -CORRECTANSWER Prepayment
The original principal amount of a mortgage loan is the: -CORRECTANSWER Amount
of the lender's investment
Someone who buys an asset or a property interest in an asset is making a/an: -
CORRECTANSWER Ownership investment
Mortgage loans are pooled together and sold on the secondary market as: -
CORRECTANSWER Mortgage backed securities
Which of the following is NOT true of market interest rates? -CORRECTANSWER High
market interest rates encourage refinancing
,Stocks and bonds are traded in specialized markets that are regulated by the: -
CORRECTANSWER Securities and Exchange Commission
Mortgage lenders screen loan applicants to evaluate the: -CORRECTANSWER Risk of
default
Risk of loss
Interest rate risk
A mortgage lender's risk of loss relates to: -CORRECTANSWER The likelihood that the
borrower will default on the loan
An investor invests money in expectation of a return on the investment. Depending on
the type of investment, the return may be anything of the following except: -
CORRECTANSWER Depreciation
A certificate of indebtedness issued by a governmental body or a corporation is a: -
CORRECTANSWER Bond
Which of the following statements about securities is true? -CORRECTANSWER
Securities give the holder a property interest or a right to payment
The federal government's actions in raising revenue, spending money, and managing
debt are referred to as: -CORRECTANSWER Fiscal policy
, A federal deficit occurs when, in a given year, the federal government: -
CORRECTANSWER Spends more than it receives in revenue
An unmarried homeowner may deduct mortgage interest on a loan to purchase a first or
second residence, up to a loan amount of: -CORRECTANSWER $1,000,000
Which of the following is a type of deduction that an owner of income-producing
property can take, but a homeowner can't? -CORRECTANSWER Depreciation
deduction
The Federal Reserve System was created through the: -CORRECTANSWER Federal
Reserve Act of 1913 and 1916
How many members of the Federal Reserve Board are there? -CORRECTANSWER 7
Frequent and widespread bank panics led to the creation of the: -CORRECTANSWER
Federal Deposit Insurance Corporation
Which of the following is NOT a tool the Federal Reserve System may use to influence
the economy? -CORRECTANSWER Tax rates
