Real Estate Finance Chapter 1 Quiz With correct Answers

Usury is: - ANSWER-an interest payment in excess of the legally permitted rate. A fiduciary is: - ANSWER-a person who has a financial trust. A bond is a(n): - ANSWER-debt instrument. The highest legal form of property ownership is: - ANSWER-fee simple estate. A payment of principal at the end of a series of smaller periodic mortgage payments that is typically much higher than the previous payments is called a(n): - ANSWER-balloon payment. An underwriter: - ANSWER-makes loans based on assessment of risk. Often in times of war, a decree of the state will issue: - ANSWER-flat money. Prime rate refers to: - ANSWER-the bank's lowest rate. The Truth in Lending Law requires: - ANSWER-lenders to inform borrowers of the total costs of obtaining a loan. Personal property that is included with real estate is called: - ANSWER-chattel.