Real Estate Principles Exam A+ Grade Assured Complete Solutions And Verified Answers

REAL ESTATE EXAM
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Exam Solution
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Real Estate Final (test bank) 2026 A+ GRADE ASSURED
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COMPLETE SOLUTIONS AND VERIFIED ANSWERS (21A ms ms ms ms ms




D0)




QUESTION 1 ms




1. When viewed as a tangible asset, real estate can be defined as the land and its per
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manent improvements. Improvements on the land include
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A. fences
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B. walkways
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C. sewer systems
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D. streets
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ANSWER

Fences



QUESTION 2 ms




. Real estate is property, which can be either a tangible or an intangible asset. Which
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of the following would be considered an intangible asset?
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A. Land
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B. Building
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C. Mortgage
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D. Fence
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ANSWER

Mortgage



QUESTION 3 ms




If we desire to classify land by its use, land that does not include any improvements t
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o the land would be categorized as:
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A. "Raw" land
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B. Building site
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,C. Developed land
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D. Property infrastructure
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ANSWER

Raw land ms




QUESTION 4 ms




. The size of a single family residential lot is typically:
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A. less than one acre
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B. between one and two acres
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C. between two and three acres
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D. greater than three acres
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ANSWER

Less than one acre
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QUESTION 5 ms




As of 2011, the single largest asset category in the net worth portfolios of households
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is:
A. government and corporate bonds
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B. stocks and mutual fund shares
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C. consumer durable goods
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D. housing'
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ANSWER

Housing



QUESTION 6 ms




Real estate values derive from the interaction of three different sectors in the econom
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y. Which of the following sectors serves to allocate financial resources among househo
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lds and firms requiring funds?
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A. User market
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B. Capital market
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C. Government
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D. Property market
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ANSWER

Capital market ms




QUESTION 7 ms

,The demand for real estate derives from the need that market participants (e.g., owne
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r occupants, tenants, renters) have for shelter and convenient access to other location
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s. This competition for physical location and space occurs in the:
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A. User Market
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B. Capital Market
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C. Government Sector
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D. Property Market
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ANSWER

User market ms




QUESTION 8 ms




The expected stream of rental income is capitalized into value by converting expected
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future cash flows into present value through a process called:
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A. amortization
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B. discounting
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C. compounding
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D. accounting
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ANSWER

Discounting



QUESTION 9 ms




Capital markets can be divided into four main categories: private equity, public equity
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, private debt, and public debt. An example of a real estate asset that trades in the pri
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vate equity market is:
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A. real property
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B. home mortgages
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C. equity REITs
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D. mortgage backed securities
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ANSWER

Real property ms




QUESTION 10 ms




Primarily through land use controls and property tax policy, which of the following br
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anches of government has the largest influence on real estate values?
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A. Local government
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B. State government
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C. National government
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D. Foreign government
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, ANSWER

Local government
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QUESTION 11 ms




Each property has unique features, whether it is its age, the building design of its stru
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ctures, or its location. As such, real estate markets consist of assets that are considere
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d:
A. homogeneous
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B. heterogeneous
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C. substitutes
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D. complements
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ANSWER

Heterogeneous



QUESTION 12 ms




Consistently the investment target of pension funds, publicly traded real estate compa
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nies, and real estate funds, large commercial properties valued well over $10 million
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are often referred to as:
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A. segmented property
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B. investment-grade property
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C. speculative-grade property
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D. immobile property
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ANSWER

investment grade property ms ms




QUESTION 13 ms




by the third quarter of 2011, U.S. households had accumulated $6.2 trillion in housing
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equity, which represents about 11 percent of their net worth. What proportion of U.S.
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households own their home?
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A. one-third
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B. one-half
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C. two-thirds
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D. three-fourths
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ANSWER

Two- thirds ms




QUESTION 14 ms