RECA Fundamentals Exam Questions
And Verified Answers
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1. Which of the following is NOT a RECA educational resource for industry
professionals? CORRECT ANSWER Spatial Information System (Spin 2)
2. Which entity has the authority to amend the Real Estate Act CORRECT ANSWER Provincial
Legislature
3. Which of the following measures the change in a cost of a fixed basket of
goods and services purchased by families over a period of time CORRECT ANSWER Consumer
Price Index
(CPI)
4. Which of the following will occur to the supply of a good when there is a
change in quantity supplied due to a price increase? CORRECT ANSWER an increase in quantity
supplied
5. Microeconics CORRECT ANSWER studies the basic theories of supply and demand as it
relates to individuals, households and
f
irms
6. Resource Markets CORRECT ANSWER facilitate the exchange of factors of production
7. What causes the quantity demanded to shift? CORRECT ANSWER change in tastes,
expectations, and number
of consumers
8. benefits of economic growth CORRECT ANSWER depletion of natural resources
9. Real Property Report CORRECT ANSWER document produced by Alberta Land Surveyor
10. Which of the following is not a non-price determinant of demand CORRECT ANSWER cost of
production
,11. What type of economy does Canada have? CORRECT ANSWER mixed economy
12. Benefits of RECAS trust assurance and practice review program CORRECT ANSWER -
effective record
keeping and administrative procedures- education and advice in relation to brokerage trust
accounting- identifies and resolves potential problems regarding brokerage trust accounting
requirements
13. Responsibilities of RECA CORRECT ANSWER - Handling professional conduct review-
establishing industry standards of practice- issuing authorization to trade in real estate
14. Four factors of production CORRECT ANSWER land, labor, capital, entrepreneurship
15. RECA provides the following annual reports CORRECT ANSWER - financial reports- industry
statistics- reports for the previous year
16. The structure of real estate in Alberta includes; CORRECT ANSWER - local real estate boards-
alberta real estate association- canadian real estate association
RECA Fundamentals Exam
Study online at https CORRECT ANSWER//quizlet.com/_90izf2
17. Referral definition CORRECT ANSWER The act of recommending or directing a person for
service to another person or
business- brokerage is responsible for paying and receiving remuneration in connection to trade
18. RECAS professional conduct review Objects CORRECT ANSWER - gather all relevant
information- treat parties fairly-gather information efficiently
19. Amendments to the Act CORRECT ANSWER - can be made by provincial legislature with
recommendations by the Minister
of Service Alberta
20. Amendments to the rules CORRECT ANSWER The rules contain the day to day activities-
council has the authority to create and amend
21. Executive Director can suspend license CORRECT ANSWER - determines the length of
suspension- serves the decision on the industry professional- will consider the evidence when
making the decision
, 22. Whats includes in written service agreements? CORRECT ANSWER - the services to be
provided by the
brokerage- the responsibilities of each party to the agreement- the names of the parties to the
agreement
23. failure to immediately notify Executive Director of changes to information
provided in support of license results in CORRECT ANSWER CORRECT ANSWER - Exec. Director
may refer the matter for a professional
conduct review- Exec. Director may suspend industry professionals license- Exec. director may
cancel the industry professionals license
24. How long is license valid if not registered with brokerage? CORRECT ANSWER 36 months
25. Levels of Disclosure CORRECT ANSWER 1. other party represented by another brokerage
2. other party not represented
3. other party represented by same brokerage
26. Designated Agency vs Common law CORRECT ANSWER Designated Agency- relationship
with individual instead of brokerage- conflict of interest only if agent has an interest in property
Common Law- agency relationship exists
RECA Fundamentals Exam
Study online at https CORRECT ANSWER//quizlet.com/_90izf2- conflict of interest extends to
whole brokerage- must be disclosed
27. Inducement vs incentives CORRECT ANSWER - Inducement is client specific- incentives must
be offered by brokerage to everyone
28. If industry professional withdraws from profession during disciplinary pro
ceedings CORRECT ANSWER - RECA issues a news release- all disciplinary proceedings
terminated- lifetime ban from all industry professions governed by RECA
29. Advisory Notes CORRECT ANSWER Technical breach of legislation- ex. forgetting brokerage
name on marketing
30. Letters of Reprimand CORRECT ANSWER - where cases of conduct deserving sanction is less
serious- agent has also received an advisory note
And Verified Answers
m/_90izf2
1. Which of the following is NOT a RECA educational resource for industry
professionals? CORRECT ANSWER Spatial Information System (Spin 2)
2. Which entity has the authority to amend the Real Estate Act CORRECT ANSWER Provincial
Legislature
3. Which of the following measures the change in a cost of a fixed basket of
goods and services purchased by families over a period of time CORRECT ANSWER Consumer
Price Index
(CPI)
4. Which of the following will occur to the supply of a good when there is a
change in quantity supplied due to a price increase? CORRECT ANSWER an increase in quantity
supplied
5. Microeconics CORRECT ANSWER studies the basic theories of supply and demand as it
relates to individuals, households and
f
irms
6. Resource Markets CORRECT ANSWER facilitate the exchange of factors of production
7. What causes the quantity demanded to shift? CORRECT ANSWER change in tastes,
expectations, and number
of consumers
8. benefits of economic growth CORRECT ANSWER depletion of natural resources
9. Real Property Report CORRECT ANSWER document produced by Alberta Land Surveyor
10. Which of the following is not a non-price determinant of demand CORRECT ANSWER cost of
production
,11. What type of economy does Canada have? CORRECT ANSWER mixed economy
12. Benefits of RECAS trust assurance and practice review program CORRECT ANSWER -
effective record
keeping and administrative procedures- education and advice in relation to brokerage trust
accounting- identifies and resolves potential problems regarding brokerage trust accounting
requirements
13. Responsibilities of RECA CORRECT ANSWER - Handling professional conduct review-
establishing industry standards of practice- issuing authorization to trade in real estate
14. Four factors of production CORRECT ANSWER land, labor, capital, entrepreneurship
15. RECA provides the following annual reports CORRECT ANSWER - financial reports- industry
statistics- reports for the previous year
16. The structure of real estate in Alberta includes; CORRECT ANSWER - local real estate boards-
alberta real estate association- canadian real estate association
RECA Fundamentals Exam
Study online at https CORRECT ANSWER//quizlet.com/_90izf2
17. Referral definition CORRECT ANSWER The act of recommending or directing a person for
service to another person or
business- brokerage is responsible for paying and receiving remuneration in connection to trade
18. RECAS professional conduct review Objects CORRECT ANSWER - gather all relevant
information- treat parties fairly-gather information efficiently
19. Amendments to the Act CORRECT ANSWER - can be made by provincial legislature with
recommendations by the Minister
of Service Alberta
20. Amendments to the rules CORRECT ANSWER The rules contain the day to day activities-
council has the authority to create and amend
21. Executive Director can suspend license CORRECT ANSWER - determines the length of
suspension- serves the decision on the industry professional- will consider the evidence when
making the decision
, 22. Whats includes in written service agreements? CORRECT ANSWER - the services to be
provided by the
brokerage- the responsibilities of each party to the agreement- the names of the parties to the
agreement
23. failure to immediately notify Executive Director of changes to information
provided in support of license results in CORRECT ANSWER CORRECT ANSWER - Exec. Director
may refer the matter for a professional
conduct review- Exec. Director may suspend industry professionals license- Exec. director may
cancel the industry professionals license
24. How long is license valid if not registered with brokerage? CORRECT ANSWER 36 months
25. Levels of Disclosure CORRECT ANSWER 1. other party represented by another brokerage
2. other party not represented
3. other party represented by same brokerage
26. Designated Agency vs Common law CORRECT ANSWER Designated Agency- relationship
with individual instead of brokerage- conflict of interest only if agent has an interest in property
Common Law- agency relationship exists
RECA Fundamentals Exam
Study online at https CORRECT ANSWER//quizlet.com/_90izf2- conflict of interest extends to
whole brokerage- must be disclosed
27. Inducement vs incentives CORRECT ANSWER - Inducement is client specific- incentives must
be offered by brokerage to everyone
28. If industry professional withdraws from profession during disciplinary pro
ceedings CORRECT ANSWER - RECA issues a news release- all disciplinary proceedings
terminated- lifetime ban from all industry professions governed by RECA
29. Advisory Notes CORRECT ANSWER Technical breach of legislation- ex. forgetting brokerage
name on marketing
30. Letters of Reprimand CORRECT ANSWER - where cases of conduct deserving sanction is less
serious- agent has also received an advisory note
