RECA Fundamentals Exam Questions swith
Correct Answers
Which of the following is NOT a RECA educational resource for industry professionals?
Correct Answer Spatial Information System (Spin 2)
Which entity has the authority to amend the Real Estate Act Correct Answer Provincial
Legislature
Which of the following measures the change in a cost of a fixed basket of goods and
services purchased by families over a period of time Correct Answer Consumer Price
Index (CPI)
Which of the following will occur to the supply of a good when there is a change in
quantity supplied due to a price increase? Correct Answer an increase in quantity
supplied
Microeconics Correct Answer studies the basic theories of supply and demand as it
relates to individuals, households and firms
Resource Markets Correct Answer facilitate the exchange of factors of production
What causes the quantity demanded to shift? Correct Answer change in tastes,
expectations, and number of consumers
benefits of economic growth Correct Answer depletion of natural resources
Real Property Report Correct Answer document produced by Alberta Land Surveyor
Which of the following is not a non-price determinant of demand Correct Answer cost of
production
What type of economy does Canada have? Correct Answer mixed economy
Benefits of RECAS trust assurance and practice review program Correct Answer -
effective record keeping and administrative procedures
- education and advice in relation to brokerage trust accounting
- identifies and resolves potential problems regarding brokerage trust accounting
requirements
Responsibilities of RECA Correct Answer - Handling professional conduct review
- establishing industry standards of practice
- issuing authorization to trade in real estate
, Four factors of production Correct Answer land, labor, capital, entrepreneurship
RECA provides the following annual reports Correct Answer - financial reports
- industry statistics
- reports for the previous year
The structure of real estate in Alberta includes; Correct Answer - local real estate
boards
- alberta real estate association
- canadian real estate association
Referral definition Correct Answer The act of recommending or directing a person for
service to another person or business
- brokerage is responsible for paying and receiving remuneration in connection to trade
RECAS professional conduct review Objects Correct Answer - gather all relevant
information
- treat parties fairly
-gather information efficiently
Amendments to the Act Correct Answer - can be made by provincial legislature with
recommendations by the Minister of Service Alberta
Amendments to the rules Correct Answer The rules contain the day to day activities
- council has the authority to create and amend
Executive Director can suspend license Correct Answer - determines the length of
suspension
- serves the decision on the industry professional
- will consider the evidence when making the decision
Whats includes in written service agreements? Correct Answer - the services to be
provided by the brokerage
- the responsibilities of each party to the agreement
- the names of the parties to the agreement
failure to immediately notify Executive Director of changes to information provided in
support of license results in: Correct Answer - Exec. Director may refer the matter for a
professional conduct review
- Exec. Director may suspend industry professionals license
- Exec. director may cancel the industry professionals license
How long is license valid if not registered with brokerage? Correct Answer 36 months
Levels of Disclosure Correct Answer 1. other party represented by another brokerage
2. other party not represented
Correct Answers
Which of the following is NOT a RECA educational resource for industry professionals?
Correct Answer Spatial Information System (Spin 2)
Which entity has the authority to amend the Real Estate Act Correct Answer Provincial
Legislature
Which of the following measures the change in a cost of a fixed basket of goods and
services purchased by families over a period of time Correct Answer Consumer Price
Index (CPI)
Which of the following will occur to the supply of a good when there is a change in
quantity supplied due to a price increase? Correct Answer an increase in quantity
supplied
Microeconics Correct Answer studies the basic theories of supply and demand as it
relates to individuals, households and firms
Resource Markets Correct Answer facilitate the exchange of factors of production
What causes the quantity demanded to shift? Correct Answer change in tastes,
expectations, and number of consumers
benefits of economic growth Correct Answer depletion of natural resources
Real Property Report Correct Answer document produced by Alberta Land Surveyor
Which of the following is not a non-price determinant of demand Correct Answer cost of
production
What type of economy does Canada have? Correct Answer mixed economy
Benefits of RECAS trust assurance and practice review program Correct Answer -
effective record keeping and administrative procedures
- education and advice in relation to brokerage trust accounting
- identifies and resolves potential problems regarding brokerage trust accounting
requirements
Responsibilities of RECA Correct Answer - Handling professional conduct review
- establishing industry standards of practice
- issuing authorization to trade in real estate
, Four factors of production Correct Answer land, labor, capital, entrepreneurship
RECA provides the following annual reports Correct Answer - financial reports
- industry statistics
- reports for the previous year
The structure of real estate in Alberta includes; Correct Answer - local real estate
boards
- alberta real estate association
- canadian real estate association
Referral definition Correct Answer The act of recommending or directing a person for
service to another person or business
- brokerage is responsible for paying and receiving remuneration in connection to trade
RECAS professional conduct review Objects Correct Answer - gather all relevant
information
- treat parties fairly
-gather information efficiently
Amendments to the Act Correct Answer - can be made by provincial legislature with
recommendations by the Minister of Service Alberta
Amendments to the rules Correct Answer The rules contain the day to day activities
- council has the authority to create and amend
Executive Director can suspend license Correct Answer - determines the length of
suspension
- serves the decision on the industry professional
- will consider the evidence when making the decision
Whats includes in written service agreements? Correct Answer - the services to be
provided by the brokerage
- the responsibilities of each party to the agreement
- the names of the parties to the agreement
failure to immediately notify Executive Director of changes to information provided in
support of license results in: Correct Answer - Exec. Director may refer the matter for a
professional conduct review
- Exec. Director may suspend industry professionals license
- Exec. director may cancel the industry professionals license
How long is license valid if not registered with brokerage? Correct Answer 36 months
Levels of Disclosure Correct Answer 1. other party represented by another brokerage
2. other party not represented
