GMAT COMPREHENSIVE STUDY
GUIDE:HIGH-YIELD PRACTICE
QUESTIONS AND ANSWERS
2025|2026||ALREADY GRADED A++
Adjustable-Rate Mortgage (ARM) - CORRECT ANSWERS - A loan with
an interest rate that changes periodically in keeping with a current index, such
as one-year treasury bills.
Agreement of Sale - CORRECT ANSWERS - A contract where a seller
agrees to sell and a buyer agrees to buy, under specific terms and conditions
spelled out in writing and signed by both parties.
Amortization - CORRECT ANSWERS - Paying off debt with installments,
where the installments can be either a series of equal payments or, more
commonly, a calculated schedule of payments that includes accumulation of
interest. This calculation process is also often used to determine usage and
depreciation on assets.
Annual Percentage Rate (A.P.R.) - CORRECT ANSWERS - The interest
percentage of a loan, including all finance charges and other payments and
credits, averaged over the course of a year.
Appraisal - CORRECT ANSWERS - A process of evaluating, estimating or
determining the value of property or assets. This term is often used when
discussing property values and asset evaluation. In addition, a "performance
appraisal" is a common term for regular overviews of an employee's work in a
company, which frequently impact salary and bonuses.
Blanket Mortgage - CORRECT ANSWERS - A mortgage or trust deed that
covers more than one lot or parcel of real property, and often an entire
,subdivision. As individual lots are sold, a partial re-conveyance or release from
the blanket mortgage is usually obtained.
Certificate of Title - CORRECT ANSWERS - A document issued by a title
company, registrar, or attorney stating that the ownership of a piece of property
is vested as stated on the document.
Closing - CORRECT ANSWERS - The process of executing legally binding
documents, such as deeds and mortgages commonly associated with the
purchase of real estate and borrowing money to assist in the purchase. Also
known as "escrow" or "settlement."
Deed - CORRECT ANSWERS - A formal written agreement by which title
to real property is transferred from one owner to another.
Easement Rights - CORRECT ANSWERS - A right-of-way granted to a
person, organization, or government authorizing access to or over the owner's
land.
Equity - CORRECT ANSWERS - Ownership in a corporation in the form of
common or preferred stock. It also refers to total assets minus total liabilities, in
which case it is referred to as shareholder's equity, net worth or book value.
Escrow - CORRECT ANSWERS - Funds paid by one party to another to
hold until the occurrence of an event, after which the funds are released to a
designated individual.
Federal Housing Administration (FHA) Guarantee - CORRECT ANSWERS -
An insurance contract in which FHA insures that the named lender will recover
a specific percentage of the loan amount from the insurer in the event that the
loan goes bad.
,Fee Simple - CORRECT ANSWERS - Unrestricted ownership of property,
in which the owner has complete control, though the property is still subject to
taxes.
Fixed-Rate Mortgage - CORRECT ANSWERS - A loan that carries an
unchangeable interest rate over its entire term, typically a period of 15-30 years.
Foreclosure - CORRECT ANSWERS - A proceeding to take away all rights,
title, and interest of the owner of property in order to sell the property to satisfy
a lien against it.
Full Disclosure - CORRECT ANSWERS - In real estate, disclosing all the
known facts that may affect the decision of a buyer or tenant.
Homeowner's Insurance - CORRECT ANSWERS - Real estate insurance
protecting against loss caused by fire, some natural causes, vandalism, etc.,
depending on the terms of the policy.
HUD - CORRECT ANSWERS - U.S. Department of Housing and Urban
Development. This federal department is responsible for the major housing
programs in the United States, such as FHA.
Lease - CORRECT ANSWERS - An agreement by which an owner of real
property gives the right of possession to another for a specified period of time
and payment.
Market Value - CORRECT ANSWERS - The price that a home will get on
the market, based on comparisons to similar homes that have sold recently in
the area.
Mortgage - CORRECT ANSWERS - A lien on real property that is given by
the buyer to the lender as a security for money borrowed.
, Mortgage Broker - CORRECT ANSWERS - A person or company who
negotiates mortgages for another person or company in order to receive a
commission.
Mortgage Insurance - CORRECT ANSWERS - Insurance written by an
independent mortgage insurance company that protects the mortgage lender
against loss experienced by a mortgage default.
Negative Amortization - CORRECT ANSWERS - A circumstance that
occurs when a loan payment is less than the principal and interest due on a loan.
Private Mortgage Insurance/P.M.I. - CORRECT ANSWERS - Insurance that
is part of a mortgage contract to protect the lender.
Real Estate - CORRECT ANSWERS - Also called "real property," it is land
and anything permanently attached to the land, such as buildings, fences and
items that are attached to the buildings.
Real Estate Broker - CORRECT ANSWERS - A middleman or agent who
purchase and puts up for sale real estate for a company, firm or individual in
order to receive a commission.
Realtor - CORRECT ANSWERS - The term for a professional real estate
broker who is a member of a national association of realtors and who follows its
rules and regulations.
Tax Sale - CORRECT ANSWERS - The auctioning and sale of real estate
for which the owner has not paid property taxes.
Account Manager - CORRECT ANSWERS - The person in charge of
particular customers, departments, or employees.
GUIDE:HIGH-YIELD PRACTICE
QUESTIONS AND ANSWERS
2025|2026||ALREADY GRADED A++
Adjustable-Rate Mortgage (ARM) - CORRECT ANSWERS - A loan with
an interest rate that changes periodically in keeping with a current index, such
as one-year treasury bills.
Agreement of Sale - CORRECT ANSWERS - A contract where a seller
agrees to sell and a buyer agrees to buy, under specific terms and conditions
spelled out in writing and signed by both parties.
Amortization - CORRECT ANSWERS - Paying off debt with installments,
where the installments can be either a series of equal payments or, more
commonly, a calculated schedule of payments that includes accumulation of
interest. This calculation process is also often used to determine usage and
depreciation on assets.
Annual Percentage Rate (A.P.R.) - CORRECT ANSWERS - The interest
percentage of a loan, including all finance charges and other payments and
credits, averaged over the course of a year.
Appraisal - CORRECT ANSWERS - A process of evaluating, estimating or
determining the value of property or assets. This term is often used when
discussing property values and asset evaluation. In addition, a "performance
appraisal" is a common term for regular overviews of an employee's work in a
company, which frequently impact salary and bonuses.
Blanket Mortgage - CORRECT ANSWERS - A mortgage or trust deed that
covers more than one lot or parcel of real property, and often an entire
,subdivision. As individual lots are sold, a partial re-conveyance or release from
the blanket mortgage is usually obtained.
Certificate of Title - CORRECT ANSWERS - A document issued by a title
company, registrar, or attorney stating that the ownership of a piece of property
is vested as stated on the document.
Closing - CORRECT ANSWERS - The process of executing legally binding
documents, such as deeds and mortgages commonly associated with the
purchase of real estate and borrowing money to assist in the purchase. Also
known as "escrow" or "settlement."
Deed - CORRECT ANSWERS - A formal written agreement by which title
to real property is transferred from one owner to another.
Easement Rights - CORRECT ANSWERS - A right-of-way granted to a
person, organization, or government authorizing access to or over the owner's
land.
Equity - CORRECT ANSWERS - Ownership in a corporation in the form of
common or preferred stock. It also refers to total assets minus total liabilities, in
which case it is referred to as shareholder's equity, net worth or book value.
Escrow - CORRECT ANSWERS - Funds paid by one party to another to
hold until the occurrence of an event, after which the funds are released to a
designated individual.
Federal Housing Administration (FHA) Guarantee - CORRECT ANSWERS -
An insurance contract in which FHA insures that the named lender will recover
a specific percentage of the loan amount from the insurer in the event that the
loan goes bad.
,Fee Simple - CORRECT ANSWERS - Unrestricted ownership of property,
in which the owner has complete control, though the property is still subject to
taxes.
Fixed-Rate Mortgage - CORRECT ANSWERS - A loan that carries an
unchangeable interest rate over its entire term, typically a period of 15-30 years.
Foreclosure - CORRECT ANSWERS - A proceeding to take away all rights,
title, and interest of the owner of property in order to sell the property to satisfy
a lien against it.
Full Disclosure - CORRECT ANSWERS - In real estate, disclosing all the
known facts that may affect the decision of a buyer or tenant.
Homeowner's Insurance - CORRECT ANSWERS - Real estate insurance
protecting against loss caused by fire, some natural causes, vandalism, etc.,
depending on the terms of the policy.
HUD - CORRECT ANSWERS - U.S. Department of Housing and Urban
Development. This federal department is responsible for the major housing
programs in the United States, such as FHA.
Lease - CORRECT ANSWERS - An agreement by which an owner of real
property gives the right of possession to another for a specified period of time
and payment.
Market Value - CORRECT ANSWERS - The price that a home will get on
the market, based on comparisons to similar homes that have sold recently in
the area.
Mortgage - CORRECT ANSWERS - A lien on real property that is given by
the buyer to the lender as a security for money borrowed.
, Mortgage Broker - CORRECT ANSWERS - A person or company who
negotiates mortgages for another person or company in order to receive a
commission.
Mortgage Insurance - CORRECT ANSWERS - Insurance written by an
independent mortgage insurance company that protects the mortgage lender
against loss experienced by a mortgage default.
Negative Amortization - CORRECT ANSWERS - A circumstance that
occurs when a loan payment is less than the principal and interest due on a loan.
Private Mortgage Insurance/P.M.I. - CORRECT ANSWERS - Insurance that
is part of a mortgage contract to protect the lender.
Real Estate - CORRECT ANSWERS - Also called "real property," it is land
and anything permanently attached to the land, such as buildings, fences and
items that are attached to the buildings.
Real Estate Broker - CORRECT ANSWERS - A middleman or agent who
purchase and puts up for sale real estate for a company, firm or individual in
order to receive a commission.
Realtor - CORRECT ANSWERS - The term for a professional real estate
broker who is a member of a national association of realtors and who follows its
rules and regulations.
Tax Sale - CORRECT ANSWERS - The auctioning and sale of real estate
for which the owner has not paid property taxes.
Account Manager - CORRECT ANSWERS - The person in charge of
particular customers, departments, or employees.
