RealestateU Texas
Real Estate
Finance Exam
Questions and
Complete Solutions
Denning [Date] [Course title]
,The economy generally grows when which of the following occurs...?
There is an increase in the money supply
There is a decrease in the money supply
When the money supply remains even
A decrease in the population - Answer: There is an increase in the money supply
Money that is easily obtainable is considered...?
M1
M2
M3
M4 - Answer: M1
The supply of less liquid money is considered...?
M1
M2
M3
M4 - Answer: M2
The supply of money which is the least liquid is considered...?
M1
M2
M3
M4 - Answer: M3
As the cost of borrowing money increases, the amount of lending activity will...?
,Increase
Decrease
Remain the same
The cost of borrowing money is not related to lending activity - Answer: Decrease
To pledge a thing as security without the necessity of giving up possession of it means to...?
Record
Acknowledge
Notarize
Hypothecate - Answer: Hypothecate
Which of the following serves as evidence of a debt...?
Promissory note
Collateral
Title
Credit - Answer: Promissory note
The right to obtain full ownership of property is known as...?
Equitable title
Legal title
Secure title
Full title - Answer: Equitable title
James needed to obtain financing to purchase a new house. What will most likely be used as collateral
for James' loan...?
, The house James purchased
James' car
James' bank account
James' old house - Answer: The house James purchased
Two or more consecutive quarters of negative growth is known as a...?
Regression
Rebound
Recovery
Recession - Answer: Recession
The minimum interest rate set by the Federal Reserve for lending to other banks is known as the...?
Subprime rate
Discount rate
Starter rate
Prime lending rate - Answer: Discount rate
The Truth in Lending Act is also known as...?
Regulation X
TARP
RESPA
Regulation Z - Answer: Regulation Z
This refers to a type of loan granted to individuals with poor credit histories (often below 600), who, as a
result of their deficient credit ratings, would not be able to qualify for conventional mortgages...?
Real Estate
Finance Exam
Questions and
Complete Solutions
Denning [Date] [Course title]
,The economy generally grows when which of the following occurs...?
There is an increase in the money supply
There is a decrease in the money supply
When the money supply remains even
A decrease in the population - Answer: There is an increase in the money supply
Money that is easily obtainable is considered...?
M1
M2
M3
M4 - Answer: M1
The supply of less liquid money is considered...?
M1
M2
M3
M4 - Answer: M2
The supply of money which is the least liquid is considered...?
M1
M2
M3
M4 - Answer: M3
As the cost of borrowing money increases, the amount of lending activity will...?
,Increase
Decrease
Remain the same
The cost of borrowing money is not related to lending activity - Answer: Decrease
To pledge a thing as security without the necessity of giving up possession of it means to...?
Record
Acknowledge
Notarize
Hypothecate - Answer: Hypothecate
Which of the following serves as evidence of a debt...?
Promissory note
Collateral
Title
Credit - Answer: Promissory note
The right to obtain full ownership of property is known as...?
Equitable title
Legal title
Secure title
Full title - Answer: Equitable title
James needed to obtain financing to purchase a new house. What will most likely be used as collateral
for James' loan...?
, The house James purchased
James' car
James' bank account
James' old house - Answer: The house James purchased
Two or more consecutive quarters of negative growth is known as a...?
Regression
Rebound
Recovery
Recession - Answer: Recession
The minimum interest rate set by the Federal Reserve for lending to other banks is known as the...?
Subprime rate
Discount rate
Starter rate
Prime lending rate - Answer: Discount rate
The Truth in Lending Act is also known as...?
Regulation X
TARP
RESPA
Regulation Z - Answer: Regulation Z
This refers to a type of loan granted to individuals with poor credit histories (often below 600), who, as a
result of their deficient credit ratings, would not be able to qualify for conventional mortgages...?
