Real Estate Finance I Exam Questions & Answers 100% Accurate

When the supply of real estate exceeds the demand for real estate, what happens to price? - ANSWER-decreases What do lenders NOT consider when qualifying a buyer for a loan? - ANSWER-number of children Which of the following statements about property tax exemptions is TRUE? - ANSWER-they decrease the value on which the owner will be taxed The Fed has at its disposal three tools for implementing its monetary policy by influencing the money supply. Which are? - ANSWER-the reserve requirement, the discount rate, and open-market operations What is the central bank of the United States? - ANSWER-Federal Reserve Who is responsible for borrowing money necessary to run the federal government? - ANSWER-The US Treasury Which act, passed in 1932, gave the savings and loan companies the authority to offer 20-year, fixed rate, fully amortized loans for the first time? - ANSWER-The Federal Home Loan Bank The Federal Reserve can influence the supply of money by changing the discount rate. What do lenders tend to do when they raise the discount rate? - ANSWER-Lend less money Which agency performs a critical and far-reaching role in enhancing national security by implementing economic sanctions against foreign threats to the US? - ANSWER-The Treasury Department