FLORIDA REAL ESTATE CLASS FINAL EXAM
2025| BRAND NEW ACTUAL EXAM WITH 100%
VERIFIED QUESTIONS AND CORRECT
SOLUTIONS| GUARANTEED VALUE PACK| ACE
YOUR GRADES.
1. which tract of land has a perimeter of 834.84 linear feet?
A. 100.00' x 834.84'
B. 100.00' x 417.42'
C. 200.84' x 215.84'
D. 208.71' x 208.71' - correct answer - D. (208.71 + 208.71 +
208.71 + 208.71 = 834.84)
2. Before Tax Cash Flow is what? - correct answer - net operating
income minus debt service
3. "Current market value less mortgage debt" describes what
term? - correct answer - equity
4. Which is NOT a benefit of investing in real estate?
A. depreciation allowance that reduces taxable income
B. hedge against inflation
C. liquidity
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D. positive leverage - correct answer - liquidity
5. Which type of risk is associated with the loss of purchasing
power due to an unexpected increase in inflation?
A. business
B. interest rate
C. liquidity
D. purchasing power - correct answer - Purchasing Power
6. Positive Leverage
A. increases the return on equity from using debt financing
B. is selling an investment property at a profit
C. is the difference between a high interest rate and a lower
interest rate
D. is the difference between a high rate of return on RE and a
lower return on other types of investments - correct answer -
increases the return on equity from using debt financing
7. The use of leverage
A. has no effect on the yield on investment
B. may increase or decrease the yield on investment
C. Will decrease the yield on investment
D. will increase the yield on investment - correct answer - MAY
increase or decrease the yield on investment
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8. Regarding the RE market, which statement is TRUE?
A. Govt regulations have little influence on the market
B. The market is influenced by the immobility of RE
C. the market is not influenced by the physical characteristics of
land
D. The market is quick to respond to changes in supply and
demand - correct answer - The market is influenced by the
immobility of RE
9. Regarding the RE market, which statement is FALSE? The
market is
A. Influence by the immobility of land
B. regulated by FREC and the DBPR
C. segmented into submarkets
D. slow to adjust to changes in supply and demand - correct
answer - B. regulated by FREC and the DBPR
10. The price of RE increases. Which will likely occur?
A. RE rental rates will increase
B. RE sales will not be affected.
C. The demand for RE will increase
D. The interest rate will decrease - correct answer - A. RE
rental rates will increase
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11. Which variable influences the supply of new real estate?
A. availability and cost of construction financing
B. income of consumers
C. mortgage credit
D. population - correct answer - A. availability and cost of
construction financing
12. There is an excess supply of housing in a RE market. The
area can best be described as
A. builder's market
B. buyer's market
C. broker's market
D. seller's market - correct answer - B. buyers market
13. The planning commission does NOT have delegated final
authority for
A. sign control
B. site plan approval
C. subdivision plan approval
D. zoning variances - correct answer - D. zoning variances
14. Which would be classified as a service industry?
A. branch office or credit union
B. coffee roasting plant
C. computer manufacturing plant