REAL ESTATE FINANCE MIDTERM [2026] |
DETAILED SOLUTIONS | UPDATED ACTUAL |
• real estate finance is basically a manifestation of our -✓✓ANSWER: credit
system economy
• disintermediation occurs when -✓✓ANSWER: savings withdrawals exceed
savings deposits
• a fundamental aspect of real estate finance is the ability of borrowers to remain
in possession and control of their property. This is defined as -✓✓ANSWER:
hypothecation
• the fact that a 1,500 sqft. house sells for $300,000 in LA,$85,000 in fresno, &
$45,000 in el centro Is based on the property's fixity and its being subject to the
economies of which of the following markets? -✓✓ANSWER: local
• the real estate cycle begins anew when -✓✓ANSWER: demand exceeds supply
• Reliance on borrowed capital more than on equity funds would be known as the
use of -✓✓ANSWER: leverage
• the demographics of a real estate cycle would probably include all of the
following inputs except the population's -✓✓ANSWER: religion
• one way to increase a property's value without adding any physical
improvements is to -✓✓ANSWER: rezone it
, • lenders having a cash surplus in a low demand area would most likely -
✓✓ANSWER: purchase loans in the secondary market
• from an economic theory point of view, money can best be described as a -
✓✓ANSWER: standard of value
• the federal reserve is currently responsible for all of the following operations
except -✓✓ANSWER: printing money
• the federal reserve is -✓✓ANSWER: a central banking system
• when the federal reserve raises its members reserve requirements, it is acting
to -✓✓ANSWER: decrease financial activities
• which agency is responsible for handling the assets of failed savings institutions?
-✓✓ANSWER: FDIC (federal deposit insurance corporation)
• deposits in banks and thrifts are insured by the -✓✓ANSWER: FDIC (federal
deposit insurance corporation)
• the california department of real estate -✓✓ANSWER: investigates complaints
against licensees.
DETAILED SOLUTIONS | UPDATED ACTUAL |
• real estate finance is basically a manifestation of our -✓✓ANSWER: credit
system economy
• disintermediation occurs when -✓✓ANSWER: savings withdrawals exceed
savings deposits
• a fundamental aspect of real estate finance is the ability of borrowers to remain
in possession and control of their property. This is defined as -✓✓ANSWER:
hypothecation
• the fact that a 1,500 sqft. house sells for $300,000 in LA,$85,000 in fresno, &
$45,000 in el centro Is based on the property's fixity and its being subject to the
economies of which of the following markets? -✓✓ANSWER: local
• the real estate cycle begins anew when -✓✓ANSWER: demand exceeds supply
• Reliance on borrowed capital more than on equity funds would be known as the
use of -✓✓ANSWER: leverage
• the demographics of a real estate cycle would probably include all of the
following inputs except the population's -✓✓ANSWER: religion
• one way to increase a property's value without adding any physical
improvements is to -✓✓ANSWER: rezone it
, • lenders having a cash surplus in a low demand area would most likely -
✓✓ANSWER: purchase loans in the secondary market
• from an economic theory point of view, money can best be described as a -
✓✓ANSWER: standard of value
• the federal reserve is currently responsible for all of the following operations
except -✓✓ANSWER: printing money
• the federal reserve is -✓✓ANSWER: a central banking system
• when the federal reserve raises its members reserve requirements, it is acting
to -✓✓ANSWER: decrease financial activities
• which agency is responsible for handling the assets of failed savings institutions?
-✓✓ANSWER: FDIC (federal deposit insurance corporation)
• deposits in banks and thrifts are insured by the -✓✓ANSWER: FDIC (federal
deposit insurance corporation)
• the california department of real estate -✓✓ANSWER: investigates complaints
against licensees.
