CE SHOP UNIT 3 EXAM QUESTIONS
WITH CORRECT ANSWERS
Buy into a few leads services to generate business - Answer-downcycle don't
Break away from your sphere of influence and explore new territory. - Answer-
Downcycle don't
Supply is high and demand is low - Answer-Buyer's market
Both supply and demand are low - Answer-Stagnant market
Supply is low and demand is high - Answer-Seller's Market
Local lenders may sell loans they have issued to national institutions as a way to
generate more money to make additional loans. TF - Answer-True
The secondary market may act as a balancing mechanism by making money available
in hot local markets and providing a safe avenue for cold local markets to unload excess
funds. TF - Answer-True
Secondary mortgage market players purchase securities from investors, then package
and resell them to local lenders. TF - Answer-False
Selling mortgage-backed securities provides national institutions in the secondary
market with additional funds to continue purchasing loans from local lenders. TF -
Answer-True
In the secondary market, how are mortgages grouped together and sold? - Answer-
Mortgage-backed securities
The construction of what type of structures is one of the largest indicators on the
country's economy - Answer-New homes
During which phase of the real estate cycle is local government most directly involved? -
Answer-Planning
When does a seller's market occur? - Answer-when supply is low and demand is high
Which professionals are most utilized by the buyer prior to closing? - Answer-Lenders,
title companies, appraisers and home inspectors
When both supply and demand increase, what tends to happen to prices? - Answer-
Stay the same
WITH CORRECT ANSWERS
Buy into a few leads services to generate business - Answer-downcycle don't
Break away from your sphere of influence and explore new territory. - Answer-
Downcycle don't
Supply is high and demand is low - Answer-Buyer's market
Both supply and demand are low - Answer-Stagnant market
Supply is low and demand is high - Answer-Seller's Market
Local lenders may sell loans they have issued to national institutions as a way to
generate more money to make additional loans. TF - Answer-True
The secondary market may act as a balancing mechanism by making money available
in hot local markets and providing a safe avenue for cold local markets to unload excess
funds. TF - Answer-True
Secondary mortgage market players purchase securities from investors, then package
and resell them to local lenders. TF - Answer-False
Selling mortgage-backed securities provides national institutions in the secondary
market with additional funds to continue purchasing loans from local lenders. TF -
Answer-True
In the secondary market, how are mortgages grouped together and sold? - Answer-
Mortgage-backed securities
The construction of what type of structures is one of the largest indicators on the
country's economy - Answer-New homes
During which phase of the real estate cycle is local government most directly involved? -
Answer-Planning
When does a seller's market occur? - Answer-when supply is low and demand is high
Which professionals are most utilized by the buyer prior to closing? - Answer-Lenders,
title companies, appraisers and home inspectors
When both supply and demand increase, what tends to happen to prices? - Answer-
Stay the same
