FIN 3070 TEST 1 QUESTIONS WITH COMPLETE
ANSWERS 100% SOLVED
1) When viewed as a tangible asset, real estate can be defined as the land and its
permanent improvements. Improvements on the land include
A) fences.
B) walkways.
C) sewer systems.
D) streets. - ANSWER A
2) All of the following are examples of an improvement on the land except
A) fences.
B) building.
C) walls.
D) streets. - ANSWER D
3) Real estate is defined as land and its permanent improvements. Which of the
following is an example of an improvement to the land?
A) fence
B) building
C) sewer system
D) personal property - ANSWER C
,4) Real estate consists of the physical structures and infrastructure that accompany the
land. All of the following are examples of an improvement tothe land except
A) walkways.
B) building.
C) sewer system.
D) streets. - ANSWER B
5) Real estate is property, which can be either a tangible or an intangible asset. Which of
the following would be considered an intangible asset?
A) land
B) building
C) mortgage
D) fence - ANSWER C
6) Which of the following would be considered a tangible asset?
A) land
B) lease agreement
C) mortgage
D) listed REIT - ANSWER A
,7) If we desire to classify land by its use, land that does not include any improvements to
the land would be categorized as
A) "raw" or undeveloped land.
B) building site.
C) developed land.
D) property infrastructure. - ANSWER A
8) The size of a single-family residential lot is typically
A) less than one acre.
B) between one and two acres.
C) between two and three acres.
D) greater than three acres. - ANSWER A
9) As of 2015, the single largest asset category in the net worth portfolios of households
is
A) government and corporate bonds.
B) stocks and mutual fund shares.
C) consumer durable goods.
D) housing. - ANSWER D
10) Real estate values derive from the interaction of three different sectors in the
economy. Which of the following sectors serves to allocate financial resources among
, households and firms requiring funds?
A) user market
B) capital market
C) government
D) property market - ANSWER B
11) The demand for real estate derives from the need that market participants (e.g.,
owner occupants, tenants, renters) have for shelter and convenient access to other
locations. This competition for physical location and space occurs in the
A) user market.
B) capital market.
C) government sector.
D) property market. - ANSWER A
12) The expected stream of rental income is capitalized into value by converting
expected future cash flows into present value through a process called
A) amortization.
B) discounting.
C) compounding.
D) accounting. - ANSWER B
13) Capital markets can be divided into four main categories: private equity, public
ANSWERS 100% SOLVED
1) When viewed as a tangible asset, real estate can be defined as the land and its
permanent improvements. Improvements on the land include
A) fences.
B) walkways.
C) sewer systems.
D) streets. - ANSWER A
2) All of the following are examples of an improvement on the land except
A) fences.
B) building.
C) walls.
D) streets. - ANSWER D
3) Real estate is defined as land and its permanent improvements. Which of the
following is an example of an improvement to the land?
A) fence
B) building
C) sewer system
D) personal property - ANSWER C
,4) Real estate consists of the physical structures and infrastructure that accompany the
land. All of the following are examples of an improvement tothe land except
A) walkways.
B) building.
C) sewer system.
D) streets. - ANSWER B
5) Real estate is property, which can be either a tangible or an intangible asset. Which of
the following would be considered an intangible asset?
A) land
B) building
C) mortgage
D) fence - ANSWER C
6) Which of the following would be considered a tangible asset?
A) land
B) lease agreement
C) mortgage
D) listed REIT - ANSWER A
,7) If we desire to classify land by its use, land that does not include any improvements to
the land would be categorized as
A) "raw" or undeveloped land.
B) building site.
C) developed land.
D) property infrastructure. - ANSWER A
8) The size of a single-family residential lot is typically
A) less than one acre.
B) between one and two acres.
C) between two and three acres.
D) greater than three acres. - ANSWER A
9) As of 2015, the single largest asset category in the net worth portfolios of households
is
A) government and corporate bonds.
B) stocks and mutual fund shares.
C) consumer durable goods.
D) housing. - ANSWER D
10) Real estate values derive from the interaction of three different sectors in the
economy. Which of the following sectors serves to allocate financial resources among
, households and firms requiring funds?
A) user market
B) capital market
C) government
D) property market - ANSWER B
11) The demand for real estate derives from the need that market participants (e.g.,
owner occupants, tenants, renters) have for shelter and convenient access to other
locations. This competition for physical location and space occurs in the
A) user market.
B) capital market.
C) government sector.
D) property market. - ANSWER A
12) The expected stream of rental income is capitalized into value by converting
expected future cash flows into present value through a process called
A) amortization.
B) discounting.
C) compounding.
D) accounting. - ANSWER B
13) Capital markets can be divided into four main categories: private equity, public
