TREBS EXAM 6 QUESTIONS AND ANSWERS
Which of the following is chattel?
A. Detached garage
B. Attached satellite dish owned by the seller
C. Washer/Dryer
D. In ground pool
Rationale: The correct answer is C. The definition of chattel is personal property. Only
the washer and dryer are not attached to the real property. - Answer -C. Washer/Dryer
Which of the following allows for unequal shares of ownership?
A. Tenants in common
B. Joint Tenancy
C. Tenancy by the entirety
D. Freehold estates
Rationale: The correct answer is A. Joint tenancy and tenancy by the entirety have
equal shares of ownership. Freehold estates is a general term that describes all three. -
Answer -
What is defined as a social science that studies how individuals, governments, firms,
and nations make choices on allocating scarce resources to satisfy their unlimited
wants?
A. Finance
B. Social studies
C. History
D. Economics
Rationale: The correct answer is D. Economics is the study of the behavior of people in
a given area. - Answer -
What is the Federal Open Market Committee?
A. It is the Fed's monetary policy-making body.
B. It is how the Fed supplies funds to member banks.
C. It is one of the 12 Federal Reserve Banks.
D. It provides general oversight for the Fed.
Rationale: The correct answer is A. FOMC is a group of people who advise the Federal
Reserve System in their policy-making. - Answer -
Which of the following is NOT necessary for money to function well?
A. It must be in U. S. currency.
B. It must be easily measured to determine its actual value.
C. It must not deteriorate quickly.
D. It must be widely accepted by buyers and sellers.
Rationale: The correct answer is A. You can have money in different countries under
their currencies (the pound, the yen, or the euro, for example) as these currencies
, function in their economies. So, the currency does not have to be U.S. currency to
function. - Answer -
Redlining is prohibited by:
A. RESPA
B. TILA
C. CRA
D. HUD
Rationale: The correct answer is C. The Community Reinvestment Act (CRA)
encourages re-investing in the community. Redlining is discrimination against people
and properties in low-income areas and is prohibited by the CRA. - Answer -
This Act ensures that consumers throughout the nation are provided with more helpful
information about the cost of the mortgage settlement and protected from unnecessarily
high settlement charges cause by certain abusive practices.
A. Dodd-Frank Act
B. RESPA
C. TILA
D. Regulation Z
Rationale: The correct answer is B. The key word in this question is" settlement
charges." The correct answer is RESPA (the Real Estate Settlement Procedures Act).
Dodd Frank has to do with consumer protection and TILA and Regulation Z deal with
advertising. - Answer -
The goal of this Act was to reduce fraud by encouraging states to establish minimum
standards for the licensing and registration of state-licensed mortgage loan originators.
A. SAFE Act
B. ECOA
C. Dodd-Frank Act
D. CRA
Rationale: The correct answer is A. The SAFE Act (Safe and Fair Enforcement for
Mortgage Licensing Act) is specifically for the mortgage industry. It basically requires
licensing and servicing agencies to communicate with each other. This is what
Homeland Security Department does for our national security since 9/11. - Answer -
This Act governs the process by which federal agencies develop and issue regulations.
A. APA (Administrative Procedures Act)
B. SAFE Act
C. Dodd-Frank Act
D. CFPB
Rationale: The correct answer is A. The APA requires federal agencies to get public
input before enacting policies. - Answer -
The main purpose of ______________ is to provide financial assistance to low- and
moderate-income buyers by promoting mortgage credit.
A. FNMA
Which of the following is chattel?
A. Detached garage
B. Attached satellite dish owned by the seller
C. Washer/Dryer
D. In ground pool
Rationale: The correct answer is C. The definition of chattel is personal property. Only
the washer and dryer are not attached to the real property. - Answer -C. Washer/Dryer
Which of the following allows for unequal shares of ownership?
A. Tenants in common
B. Joint Tenancy
C. Tenancy by the entirety
D. Freehold estates
Rationale: The correct answer is A. Joint tenancy and tenancy by the entirety have
equal shares of ownership. Freehold estates is a general term that describes all three. -
Answer -
What is defined as a social science that studies how individuals, governments, firms,
and nations make choices on allocating scarce resources to satisfy their unlimited
wants?
A. Finance
B. Social studies
C. History
D. Economics
Rationale: The correct answer is D. Economics is the study of the behavior of people in
a given area. - Answer -
What is the Federal Open Market Committee?
A. It is the Fed's monetary policy-making body.
B. It is how the Fed supplies funds to member banks.
C. It is one of the 12 Federal Reserve Banks.
D. It provides general oversight for the Fed.
Rationale: The correct answer is A. FOMC is a group of people who advise the Federal
Reserve System in their policy-making. - Answer -
Which of the following is NOT necessary for money to function well?
A. It must be in U. S. currency.
B. It must be easily measured to determine its actual value.
C. It must not deteriorate quickly.
D. It must be widely accepted by buyers and sellers.
Rationale: The correct answer is A. You can have money in different countries under
their currencies (the pound, the yen, or the euro, for example) as these currencies
, function in their economies. So, the currency does not have to be U.S. currency to
function. - Answer -
Redlining is prohibited by:
A. RESPA
B. TILA
C. CRA
D. HUD
Rationale: The correct answer is C. The Community Reinvestment Act (CRA)
encourages re-investing in the community. Redlining is discrimination against people
and properties in low-income areas and is prohibited by the CRA. - Answer -
This Act ensures that consumers throughout the nation are provided with more helpful
information about the cost of the mortgage settlement and protected from unnecessarily
high settlement charges cause by certain abusive practices.
A. Dodd-Frank Act
B. RESPA
C. TILA
D. Regulation Z
Rationale: The correct answer is B. The key word in this question is" settlement
charges." The correct answer is RESPA (the Real Estate Settlement Procedures Act).
Dodd Frank has to do with consumer protection and TILA and Regulation Z deal with
advertising. - Answer -
The goal of this Act was to reduce fraud by encouraging states to establish minimum
standards for the licensing and registration of state-licensed mortgage loan originators.
A. SAFE Act
B. ECOA
C. Dodd-Frank Act
D. CRA
Rationale: The correct answer is A. The SAFE Act (Safe and Fair Enforcement for
Mortgage Licensing Act) is specifically for the mortgage industry. It basically requires
licensing and servicing agencies to communicate with each other. This is what
Homeland Security Department does for our national security since 9/11. - Answer -
This Act governs the process by which federal agencies develop and issue regulations.
A. APA (Administrative Procedures Act)
B. SAFE Act
C. Dodd-Frank Act
D. CFPB
Rationale: The correct answer is A. The APA requires federal agencies to get public
input before enacting policies. - Answer -
The main purpose of ______________ is to provide financial assistance to low- and
moderate-income buyers by promoting mortgage credit.
A. FNMA
