CHAMPIONS REAL ESTATE FINANCE EXAM QUESTIONS WITH CORRECT ANSWERS ALL VERIFIED BY AN EXPERT A+ GRADED (LATEST UPDATE)

K
C
LO
YC
CHAMPIONS REAL ESTATE
FINANCE EXAM QUESTIONS
D


WITH CORRECT ANSWERS
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ALL VERIFIED BY AN EXPERT
ST




A+ GRADED (LATEST UPDATE)

,_____ is the consummation of a contractual real estate transaction in which all appropriate
documents are signed, and the mortgage loan proceeds are disbursed by the lender. - ANS
Closing

The primary determinants of real estate values are supply and _____. - ANS Demand

_____ is something of value that can be pledged as security for repayment of a loan. - ANS
Collateral




K
Servicing includes which of the following activities? - ANS Maintaining records of payment




C
The monetary policies of the _____affects interest rates and the availability of funds. - ANS
Federal Reserve




LO
An excess supply of money in the market results in monetary _____. - ANS Inflation

Which agency insures deposits in banks and thrift institutions for up to $250,000? - ANS The
Federal Deposit Insurance Corporation
YC
The _____ is the interest rate a reserve bank charges eligible financial institutions to borrow
funds on a short-term basis. - ANS Discount rate

Raising taxes and increasing borrowing are two ways at the treasury level to: - ANS Raise
funds to pay for government spending
D

The Fed uses three primary monetary policy tools to influence the cost and availability of credit:
open market operations, the discount rate, and _____. - ANS Reserve requirements
U


When the costs of production and services increase, causing manufacturing prices to rise, it is
called _____. - ANS Cost-push inflation
ST




Which of the following transactions is exempt from RESPA? - ANS Temporary loans

Under the _____, the use of certain terms in an advertisement triggers the need for full
disclosure of lending terms. - ANS Truth in Lending Act

The Dodd-Frank Wall Street Reform and Consumer Protection Act established the _____. -
ANS Consumer Financial Protection Bureau

How can Sylvia ensure that Victor is properly licensed as an RMLO? - ANS She can look him
up in the NMLSR

, The secondary mortgage market was designed to provide greater liquidity to the residential real
estate market, primarily by _____. - ANS The sale of mortgage loans as investments

The secondary market exists for the purchase and sale of existing ____________ to investors. -
ANS mortgages

The FHFA placed Fannie Mae and Freddie Mac in ____________ in 2008. - ANS
conservatorship

____________ established Farmer Mac in 1987. - ANS congress




K
Fannie Mae operates exclusively in the ____________ market - ANS secondary




C
A ____________ represents the money earned on an investment - ANS yield

____________ and ____________ are government-sponsored enterprises - ANS fannie




LO
mae, freddie mac

The secondary market is designed to provide greater ____________ to the residential real
estate market. - ANS liquidity
YC
Farmer Mac is regulated, ____________, and ____________ by the Farm Credit Administration
through its Office of Secondary Market Oversight. - ANS examined, supervised

When funds are withdrawn from one arena and moved to another, the process is known as
____________. - ANS disintermediation
D

A loan that is originated to adhere to Fannie Mae and Freddie Mac requirements for purchase is
known as a ____________ loan. - ANS conforming
U


With few exceptions, the law requires that the VA be paid a(n) ____________ on guaranteed
loans. - ANS funding fee
ST




Home Equity Conversion Mortgages (HECM) allow ____________ to convert the equity in their
home to cash. - ANS seniors

VA loans are made by a ____________, such as a mortgage company, savings and loan, or a
bank. - ANS lender

____________ income is the amount of money that is left over each month after all of the
borrower's major expenses are paid - including housing, taxes, and debt payments. - ANS
residual