IAAO 102 Test Questions with Correct
Answers
Surplus Produtivity
Allows us to capitalize land income into an indication of value
Return ON
Overall Yield or Discount
Return OF
Wasting Asset or Recapture
Leverage
The borrowing of funds in hopes of earning a greater return than the cost of the borrowed
funds
Positive Leverage
This is achieved when funds are invested in property, which has a higher rate of return than
the cost of borrowed funds
Negative Leverage
This occurs when the cost of the borrowed funds equals the return on the property investment
Neutral Leverage
This occurs when the cost of the borrowed funds equals the return on the property investment
Chattel Mortgage
A mortgage on personal property
Answers
Surplus Produtivity
Allows us to capitalize land income into an indication of value
Return ON
Overall Yield or Discount
Return OF
Wasting Asset or Recapture
Leverage
The borrowing of funds in hopes of earning a greater return than the cost of the borrowed
funds
Positive Leverage
This is achieved when funds are invested in property, which has a higher rate of return than
the cost of borrowed funds
Negative Leverage
This occurs when the cost of the borrowed funds equals the return on the property investment
Neutral Leverage
This occurs when the cost of the borrowed funds equals the return on the property investment
Chattel Mortgage
A mortgage on personal property