1|Page
CERTIFIED GENERAL APPRAISER EXAMINATION
COMPLETE VERIFIED QUESTIONS AND DETAILED
SOLUTIONS LATEST UPDATE THIS YEAR JUST
RELEASED
REAL ESTATE MARKETS
A. ARE NATIONAL IN SCOPE
B. DO NOT MEET THE CRITERIA FOR A PERFECT
MARKET
C. ARE CENTRALIZED IN NATURE
D. CONSIST OF USED PROPERTY ONLY
E. ARE PREVALENT IN FORMER COMMUNIST
COUNTRIES - Answer-B
THE FEDERAL DISCOUNT RATE, WHICH IS THE
INTEREST RATE THAT BANKS PAY ON THE FUNDS
THEY BORROW FROM THE FEDERAL RESERVE, IS
MOST CLOSELY LINKED TO
A. THE INFLATION RATE
B. THE PRIME RATE
C. LONG-TERM YIELD RATES
D. INTEREST RATES ON 30-YEAR BONDS
,2|Page
E. MINICIPAL BOND RATES - Answer-B
CREDIT-REGULATING DEVICES USED BY THE
FEDERAL RESERVE INCLUDE
A. MORAL SUASION
B. RESERVE REQUIREMENTS
C. THE FEDERAL DISCOUNT RATE
D. THE FEDERAL OPEN MARKET COMMITTEE
E. ALL OF THE ABOVE - Answer-E
MONETARY POLICY HELPS CONTROL INFLATION BY
A. REGULATING THE MONEY SUPPLY
B. ENCOURAGING RENT CONTROL
C. REDUCING TAXES
D. REFUSING TO BALANCE THE BUDGET
E. USING A NONCALENDAR YEAR - Answer-A
THE SECONDARY MORTGAGE MARKET IS WHERE
A. MORTGAGE BANKERS ORIGINATE MORTGAGE
LOANS
B. SECOND MORTGAGES ARE ORIGINATED
,3|Page
C. EXISTING MORTGAGES ARE BOUGHT AND SOLD
D. THE FNMA AND GNMA MAKE MORTGAGE LOANS
E. THE RTC SEARCHES FOR BUYERS OF SAVINGS
AND LOAN ASSOCIATIONS - Answer-C
WHEN INFLATION IS EXPECTED TO BE HIGH,
INVESTORS TEN TO AVOID
A. EQUITY INVESTMENTS
B. LONG-TERM FIXED-INCOME INVESTMENTS
C. SHOR-TERM INVESTMENTS
D. MONEY MARKET INSTRUMENTS
E. TANGIBLES - Answer-B
MORTGAGE FINANCING AFFECTS
A. EQUITY DIVIDENDS FROM REAL ESTATE
B. EQUITY YIELDS FROM REAL ESTATE
C. MONETARY POLICY
D. FISCAL POLICY
E. BOTH A AND B - Answer-E
, 4|Page
A $1,5000,000 LOAN IS ISSUED WITH 5 DISCOUNT
POINTS. THE LOAN BEARS AN 8% INTEREST RATE
AND HAS A 9% MORTGAGE CONSTANT, WITH
ANNUAL PAYMENTS.
THE ORIGINAL ANNUAL PAYMENT WAS
A. LESS THAN $120,000
B. $120,000
C. $135,000
D. MORE THAN $150,000
E. NONE OF THE ABOVE - Answer-C
THE FACT THAT RENTS TEND TO BE SET BY THE
MARKET FOR EQUALLY DESIRABLE SPACE
REFLECTS THE PRINCIPLE OF
A. BALANCE
B. SUBSTITUTION
C. EXTERNALITIES
D. SUPPLY AND DEMAND
E. CONFORMITY - Answer-B
CERTIFIED GENERAL APPRAISER EXAMINATION
COMPLETE VERIFIED QUESTIONS AND DETAILED
SOLUTIONS LATEST UPDATE THIS YEAR JUST
RELEASED
REAL ESTATE MARKETS
A. ARE NATIONAL IN SCOPE
B. DO NOT MEET THE CRITERIA FOR A PERFECT
MARKET
C. ARE CENTRALIZED IN NATURE
D. CONSIST OF USED PROPERTY ONLY
E. ARE PREVALENT IN FORMER COMMUNIST
COUNTRIES - Answer-B
THE FEDERAL DISCOUNT RATE, WHICH IS THE
INTEREST RATE THAT BANKS PAY ON THE FUNDS
THEY BORROW FROM THE FEDERAL RESERVE, IS
MOST CLOSELY LINKED TO
A. THE INFLATION RATE
B. THE PRIME RATE
C. LONG-TERM YIELD RATES
D. INTEREST RATES ON 30-YEAR BONDS
,2|Page
E. MINICIPAL BOND RATES - Answer-B
CREDIT-REGULATING DEVICES USED BY THE
FEDERAL RESERVE INCLUDE
A. MORAL SUASION
B. RESERVE REQUIREMENTS
C. THE FEDERAL DISCOUNT RATE
D. THE FEDERAL OPEN MARKET COMMITTEE
E. ALL OF THE ABOVE - Answer-E
MONETARY POLICY HELPS CONTROL INFLATION BY
A. REGULATING THE MONEY SUPPLY
B. ENCOURAGING RENT CONTROL
C. REDUCING TAXES
D. REFUSING TO BALANCE THE BUDGET
E. USING A NONCALENDAR YEAR - Answer-A
THE SECONDARY MORTGAGE MARKET IS WHERE
A. MORTGAGE BANKERS ORIGINATE MORTGAGE
LOANS
B. SECOND MORTGAGES ARE ORIGINATED
,3|Page
C. EXISTING MORTGAGES ARE BOUGHT AND SOLD
D. THE FNMA AND GNMA MAKE MORTGAGE LOANS
E. THE RTC SEARCHES FOR BUYERS OF SAVINGS
AND LOAN ASSOCIATIONS - Answer-C
WHEN INFLATION IS EXPECTED TO BE HIGH,
INVESTORS TEN TO AVOID
A. EQUITY INVESTMENTS
B. LONG-TERM FIXED-INCOME INVESTMENTS
C. SHOR-TERM INVESTMENTS
D. MONEY MARKET INSTRUMENTS
E. TANGIBLES - Answer-B
MORTGAGE FINANCING AFFECTS
A. EQUITY DIVIDENDS FROM REAL ESTATE
B. EQUITY YIELDS FROM REAL ESTATE
C. MONETARY POLICY
D. FISCAL POLICY
E. BOTH A AND B - Answer-E
, 4|Page
A $1,5000,000 LOAN IS ISSUED WITH 5 DISCOUNT
POINTS. THE LOAN BEARS AN 8% INTEREST RATE
AND HAS A 9% MORTGAGE CONSTANT, WITH
ANNUAL PAYMENTS.
THE ORIGINAL ANNUAL PAYMENT WAS
A. LESS THAN $120,000
B. $120,000
C. $135,000
D. MORE THAN $150,000
E. NONE OF THE ABOVE - Answer-C
THE FACT THAT RENTS TEND TO BE SET BY THE
MARKET FOR EQUALLY DESIRABLE SPACE
REFLECTS THE PRINCIPLE OF
A. BALANCE
B. SUBSTITUTION
C. EXTERNALITIES
D. SUPPLY AND DEMAND
E. CONFORMITY - Answer-B
