BASIC APPRAISAL PRINCIPLES 120 EXAM
QUESTIONS & CORRECT ANSWERS LATEST 2025
The first appraiser organizations were formed in the - ANSWER-1930s
The ________ is responsible for establishing criteria for individuals to become real
property appraisers. - ANSWER-Appraiser Qualifications Board. The AQB is
responsible for issuing qualifications for individuals to become credentialed real
property appraisers. The revised its criteria most recently, effective May 1, 2018.
Which statement about price, cost, and value is TRUE? - ANSWER-Price and value
can be the same in some situations.
A purchaser bought a property for $176,000, put 10% down and borrowed the
rest at 6.5% interest for 25 years. The lender charged 1.75 points at the closing.
How much was paid for the points? - ANSWER-Problem 3. $176,000 X .90 =
$158,400 mortgage. $158,400 X .0175 =$2,772.
The primary purpose of USPAP is to protect - ANSWER-Public Trust. The Structure
and Purpose of TAF. Public trust is the focus of USPAP.
The principle of highest and best use applies to - ANSWER-both vacant land and
improved property
The federal financial institutions regulatory agencies directly involved in fair
lending include all of the following EXCEPT - ANSWER-Fannie Mae
,The appraisal standards and qualification criteria promulgated by the boards of
The Appraisal Foundation achieves legal authority by adoption, citation or
implementation by - ANSWER-Governmental Agencies
Which would NOT be considered factors in supply analysis? - ANSWER-
employment rates. Supply Analysis. Employment rates are a measure of demand
analysis.
The distances that a boundary runs at a prescribed angle is called - ANSWER-
Bounds
"The right held by the lessee to use and occupy real estate for a stated term and
under the conditions specified in the lease" is the definition of - ANSWER-
leasehold estate
The Federal Reserve can influence the level of economic activity by - ANSWER-
regulating the availability of money and the rate of interest
The four elements of value are desire, _________, scarcity, and ________. -
ANSWER-utility, effective purchasing power
Which agency is charged with monitoring coastal habitats? - ANSWER-NOAA. The
National Oceanic and Atmospheric Administration is an American scientific
agency within the United States Department of Commerce that focuses on the
conditions of the oceans, major waterways, and the atmosphere.
The interest rate that banks charge when lending money to their highest rated
customers is called the __________ rate. - ANSWER-Prime
, An appraisal is best described as - ANSWER-an opinion of value. An appraisal is no
more or no less than an opinion developed by an appraiser. As an opinion, an
appraisal is not to be construed as a guarantee or a very precise number.
In USPAP, the word "Ethics" is defined - ANSWER-Nowhere. ETHICS RULE. It is not
defined anywhere in USPAP.
What is a corporation or trust that functions like a mutual fund for real estate, by
combining the capital of many investors to acquire real estate? - ANSWER-REIT
In property measurement, a chain contains 100 links, which measures _______
feet. - ANSWER-Metes. A chain is 66 feet long.
The principle of supply and demand states that the price of a commodity, good, or
service varies __________, but not necessarily _____________, with demand. -
ANSWER-directly, proportionately. Principle of Supply and Demand. That's the
way it works.
Fannie Mae (1938), Ginnie Mae (1968), and Freddie Mac (1970). - ANSWER-Ginnie
Mae specifically deals with non-conventional loans such as FHA loans, VA loans,
and USDA loans, also known as government-insured loans. ... Freddie Mac
purchases home mortgage loans from smaller banks and lenders whereas
typically, Fannie Mae purchases home mortgage loans from commercial banks, or
big banks.
As the term is used in the definition of appraiser, _________ generally means a
mental state that does not favor one side over another. - ANSWER-impartial. As
QUESTIONS & CORRECT ANSWERS LATEST 2025
The first appraiser organizations were formed in the - ANSWER-1930s
The ________ is responsible for establishing criteria for individuals to become real
property appraisers. - ANSWER-Appraiser Qualifications Board. The AQB is
responsible for issuing qualifications for individuals to become credentialed real
property appraisers. The revised its criteria most recently, effective May 1, 2018.
Which statement about price, cost, and value is TRUE? - ANSWER-Price and value
can be the same in some situations.
A purchaser bought a property for $176,000, put 10% down and borrowed the
rest at 6.5% interest for 25 years. The lender charged 1.75 points at the closing.
How much was paid for the points? - ANSWER-Problem 3. $176,000 X .90 =
$158,400 mortgage. $158,400 X .0175 =$2,772.
The primary purpose of USPAP is to protect - ANSWER-Public Trust. The Structure
and Purpose of TAF. Public trust is the focus of USPAP.
The principle of highest and best use applies to - ANSWER-both vacant land and
improved property
The federal financial institutions regulatory agencies directly involved in fair
lending include all of the following EXCEPT - ANSWER-Fannie Mae
,The appraisal standards and qualification criteria promulgated by the boards of
The Appraisal Foundation achieves legal authority by adoption, citation or
implementation by - ANSWER-Governmental Agencies
Which would NOT be considered factors in supply analysis? - ANSWER-
employment rates. Supply Analysis. Employment rates are a measure of demand
analysis.
The distances that a boundary runs at a prescribed angle is called - ANSWER-
Bounds
"The right held by the lessee to use and occupy real estate for a stated term and
under the conditions specified in the lease" is the definition of - ANSWER-
leasehold estate
The Federal Reserve can influence the level of economic activity by - ANSWER-
regulating the availability of money and the rate of interest
The four elements of value are desire, _________, scarcity, and ________. -
ANSWER-utility, effective purchasing power
Which agency is charged with monitoring coastal habitats? - ANSWER-NOAA. The
National Oceanic and Atmospheric Administration is an American scientific
agency within the United States Department of Commerce that focuses on the
conditions of the oceans, major waterways, and the atmosphere.
The interest rate that banks charge when lending money to their highest rated
customers is called the __________ rate. - ANSWER-Prime
, An appraisal is best described as - ANSWER-an opinion of value. An appraisal is no
more or no less than an opinion developed by an appraiser. As an opinion, an
appraisal is not to be construed as a guarantee or a very precise number.
In USPAP, the word "Ethics" is defined - ANSWER-Nowhere. ETHICS RULE. It is not
defined anywhere in USPAP.
What is a corporation or trust that functions like a mutual fund for real estate, by
combining the capital of many investors to acquire real estate? - ANSWER-REIT
In property measurement, a chain contains 100 links, which measures _______
feet. - ANSWER-Metes. A chain is 66 feet long.
The principle of supply and demand states that the price of a commodity, good, or
service varies __________, but not necessarily _____________, with demand. -
ANSWER-directly, proportionately. Principle of Supply and Demand. That's the
way it works.
Fannie Mae (1938), Ginnie Mae (1968), and Freddie Mac (1970). - ANSWER-Ginnie
Mae specifically deals with non-conventional loans such as FHA loans, VA loans,
and USDA loans, also known as government-insured loans. ... Freddie Mac
purchases home mortgage loans from smaller banks and lenders whereas
typically, Fannie Mae purchases home mortgage loans from commercial banks, or
big banks.
As the term is used in the definition of appraiser, _________ generally means a
mental state that does not favor one side over another. - ANSWER-impartial. As
