IAAO 102 EXAM WITH COMPLETE SOLUTIONS(100Q&A)

IAAO 102 EXAM 2024-2026 WITH
COMPLETE SOLUTIONS(100Q&A)

Components of the capitalization process are ________, net
operating income, and capitalization rate. - CORRECT ANSWER
✔️ Value

Components of the capitalization process are value, ________,
and capitalization rate. - CORRECT ANSWER ✔️ Net Operating
Income

Components of the capitalization process are value, net operating
income, and ________. - CORRECT ANSWER ✔️ Capitalization
Rate

Value is created by the expectation of benefits to be derives in the
future. - CORRECT ANSWER ✔️ Anticipation

This is the underlying principle which provides the basis of the
income capitalization approach. - CORRECT ANSWER ✔️
Anticipation

Investor's expectations of changes in income levels, the expenses
required to ensure income, and probable increases or decreases
in property that must be addressed and forecast. - CORRECT
ANSWER ✔️ Change

An excess of one type of facility will decrease the value of all such
facilities. - CORRECT ANSWER ✔️ Competition

Underlying principle for all 3 approaches to value. - CORRECT
ANSWER ✔️ Substitution

,The prices, rents, and rates-of-return of property tend to be set by
the current prices, rents, and rates-of-return for equally desirable
properties - CORRECT ANSWER ✔️ Substitution

This principle is market-oriented and provides the basis for
estimating rents and expenses and selecting the proper discount
rate or capitalization rate for the subject property. - CORRECT
ANSWER ✔️ Substitution

Among types and locations of income-producing properties, may
increase or decrease value. - CORRECT ANSWER ✔️ Balance

The value of a component of real estate can be measured by its
amount in the net operating income because net operating
income can be capitalized into value. - CORRECT ANSWER ✔️
Contribution

The amount of products that producers are willing to sell under
various conditions during a given period. - CORRECT ANSWER
✔️ Supply

The amount of product a buyer is willing and able to buy during
some period, given the choices available to them. - CORRECT
ANSWER ✔️ Demand

One of the three approaches to value in which the appraiser
derives a value indication by converting anticipated benefits
through ownership of income-producing property is the ________
approach. - CORRECT ANSWER ✔️ Income

Competition among sellers may lead to a/an ________, which
reduces prices and profits. - CORRECT ANSWER ✔️ Oversupply

, Competition among buyers may lead to ________, which
increases prices and profits to sellers. - CORRECT ANSWER ✔️
Shortage

The ________ rate reflects the return of the investment in the
wasting asset. - CORRECT ANSWER ✔️ Recapture

"Safety of the investment" is one of the factors in what? -
CORRECT ANSWER ✔️ The nine factors influencing investor
decisions.

"Liquidity of the investment" is one of the factors in what? -
CORRECT ANSWER ✔️ The nine factors influencing investor
decisions.

"Size of the investment is one of the factors in what? - CORRECT
ANSWER ✔️ The nine factors influencing investor decisions.

"Use as collateral" is one of the factors in what? - CORRECT
ANSWER ✔️ The nine factors influencing investor decisions.

"Time" is one of the factors in what? - CORRECT ANSWER ✔️
The nine factors influencing investor decisions.

"Management" is one of the factors in what? - CORRECT
ANSWER ✔️ The nine factors influencing investor decisions.

"Appreciation" is one of the factors in what? - CORRECT
ANSWER ✔️ The nine factors influencing investor decisions.