NATIONAL REAL ESTATE EXAM PREP
EXAM WITH QUESTIONS AND CORRECT
ANSWERS RATED A+
Which of the following buys loans in the secondary market?
A) Ginnie Mae
B) FSA
C) FCC
D) Fannie Mae Correct Answer D) Fannie Mae
What could the Federal Reserve do to increase the supply of
money?
A) Pay the President of the United States less money making
more available for other people.
B) Sell treasury notes
C) Buy treasury notes
D) Print more money Correct Answer C) Buy treasury notes
The "discount rate" refers to
A) the interest rate charged by the Federal Reserve to member
banks for short term loans
,B) The interest rate charged by banks to each other for short term
loans.
C) The amount a lender charges to sell a loan
D) The bargain rates available to buy notes from the Federal
Reserve. Correct Answer A) the interest rate charged by the
Federal Reserve to member banks for short term loans
The Veterans Affairs (VA)
A) borrows money from veterans
B) insures certain loans
C) guarantees certain loans
D) buys loans on the secondary market Correct Answer C)
guarantees certain loans
A loan which is described "amortized over 30 years, due in 10
years" would be a(n)
A) fully amortized loan
B) adjustable rate mortgage
C) balloon payment loan
D) interest only loan Correct Answer C) balloon payment loan
Among other things the Federal Reserve:
A) regulates the supply of money in the United States
,B) regulates the demand for money in the United States
C) sets the allowable interest rates on home loans
D) investigates allegations of counterfeiting Correct Answer A)
regulates the supply of money in the United States
Which of the following could result in negative amortization?
A) A fully amortized loan.
B) A baloon payment loan.
C) An ARM with a payment cap.
D) An interest only a.k.a straight loan. Correct Answer C) An ARM
with a payment cap.
An "FHA loan" is a loan that is:
A) issued by the Federal Housing Administration.
B) issued by the Federal Housing Agency.
C) insured by the FHA.
D) bought on the secondary market by the FHA. Correct Answer
C) insured by the FHA.
Jason borrowed $385,000 to buy a $450,000 house. What is his
LTV ratio?
A) It depends on the interest rate of the loan.
B) 117%
, C) 85%
D) It depends on the type of loan. Correct Answer C) 85%
The "tandem plan" is a joint effort implemented by:
A) Fannie Mae and Ginnie Mae
B) Fannie Mae and Freddie Mac
C) Fannie Mae and FHA
D) FHA and VA Correct Answer A) Fannie Mae and Ginnie Mae
Which of the following is true about a reverse mortgage?
A) It is a slang term for a loan with negative amortization.
B) It is often an excellent choice for a first time homebuyer.
C) The principal and interest on the loan are not due until the
borrower sells the house securing the loan or dies.
D) It is not available unless the borrower is at least 75 years old.
Correct Answer C) The principal and interest on the loan are not
due until the borrower sells the house securing the loan or dies.
A family's apartment lease has expired, but their landlord has told
them that they may remain on the premises until a sale of the
building is closed. They will be charged their normal monthly
rental during this period. The estate held by the family is called
a(n)
A) year to year holdover.
EXAM WITH QUESTIONS AND CORRECT
ANSWERS RATED A+
Which of the following buys loans in the secondary market?
A) Ginnie Mae
B) FSA
C) FCC
D) Fannie Mae Correct Answer D) Fannie Mae
What could the Federal Reserve do to increase the supply of
money?
A) Pay the President of the United States less money making
more available for other people.
B) Sell treasury notes
C) Buy treasury notes
D) Print more money Correct Answer C) Buy treasury notes
The "discount rate" refers to
A) the interest rate charged by the Federal Reserve to member
banks for short term loans
,B) The interest rate charged by banks to each other for short term
loans.
C) The amount a lender charges to sell a loan
D) The bargain rates available to buy notes from the Federal
Reserve. Correct Answer A) the interest rate charged by the
Federal Reserve to member banks for short term loans
The Veterans Affairs (VA)
A) borrows money from veterans
B) insures certain loans
C) guarantees certain loans
D) buys loans on the secondary market Correct Answer C)
guarantees certain loans
A loan which is described "amortized over 30 years, due in 10
years" would be a(n)
A) fully amortized loan
B) adjustable rate mortgage
C) balloon payment loan
D) interest only loan Correct Answer C) balloon payment loan
Among other things the Federal Reserve:
A) regulates the supply of money in the United States
,B) regulates the demand for money in the United States
C) sets the allowable interest rates on home loans
D) investigates allegations of counterfeiting Correct Answer A)
regulates the supply of money in the United States
Which of the following could result in negative amortization?
A) A fully amortized loan.
B) A baloon payment loan.
C) An ARM with a payment cap.
D) An interest only a.k.a straight loan. Correct Answer C) An ARM
with a payment cap.
An "FHA loan" is a loan that is:
A) issued by the Federal Housing Administration.
B) issued by the Federal Housing Agency.
C) insured by the FHA.
D) bought on the secondary market by the FHA. Correct Answer
C) insured by the FHA.
Jason borrowed $385,000 to buy a $450,000 house. What is his
LTV ratio?
A) It depends on the interest rate of the loan.
B) 117%
, C) 85%
D) It depends on the type of loan. Correct Answer C) 85%
The "tandem plan" is a joint effort implemented by:
A) Fannie Mae and Ginnie Mae
B) Fannie Mae and Freddie Mac
C) Fannie Mae and FHA
D) FHA and VA Correct Answer A) Fannie Mae and Ginnie Mae
Which of the following is true about a reverse mortgage?
A) It is a slang term for a loan with negative amortization.
B) It is often an excellent choice for a first time homebuyer.
C) The principal and interest on the loan are not due until the
borrower sells the house securing the loan or dies.
D) It is not available unless the borrower is at least 75 years old.
Correct Answer C) The principal and interest on the loan are not
due until the borrower sells the house securing the loan or dies.
A family's apartment lease has expired, but their landlord has told
them that they may remain on the premises until a sale of the
building is closed. They will be charged their normal monthly
rental during this period. The estate held by the family is called
a(n)
A) year to year holdover.
