Chapter 2

Question 1

Moral principles that govern a person’s or group’s behavior are known as ..?

A. Ethics
B. Laws
C. Rules
D. Beliefs

Answer 1

A. Ethics

Question 2

Ethics tends to proceed law….?

A. T
B. F

Answer 2

A. T (True)

Question 3

Blockbusting is also known as panic selling…..?

A. T
B. F

Answer 3

A. T (True)

Question 4

Steering is commonly associated with…..?

A. Appraisers
B. Lenders
C. Sellers
D. Buyers

Answer 4

D. Buyers

Question 5

Which of the following is considered an illegal action under the fir housing laws…..?

A. Sterring
B. blockbusting
C. Redlining
D. All of the above

Answer 5

D. All of the above

Question 6

Discrimination in advertising is covered under the Civil Rights Act of 1968..?

A. T
B. F

Answer 6

A. T (True)

Question 7

A long-term physical or mental impairment, or condition, that substantially limits a person’s major activities is known as a/an….?

A. Disability
B. Ailment
C. Injury
D. Detriment

Answer 7

A. Disability

Question 8

A federal law protecting the rights of individuals with physical or mental impairments is knowns as the…..?

A. Civil Rights Act of 1866
B. Civil Rights Act of 1964
C. Civil Rights Act of 1968
D. Americans with Disabillites Act

Answer 8

D. Americans with Disabilities Act

Question 9

Public accommodations for handicapped individuals is required under the ……?

A. Executive Order 11603
B. Civil Rights Act of 1964
C. American with Disabilities Act
D. Civil Rights Act of 1968

Answer 9

C. American with Disabilities Act

Question 10

Which of the following is prohibited discrimination in housing whenever federal funds were involved…..?

A. Executive Order 11603
B. Civil Rights Act of 1866
C. Americans with Disabilities Act
D. Civil Rights Act of 1977

Answer 10

A. Executive Order 11603

Question 11

Familial status became a protected class under the ….?

A. Civil Rights Act of 1866
B. 1988 Fair Housing Amendment Act
C. Civil Rights Act of 1964
D. ADA

Answer 11

B. 1988 Fair Housing Amendment Act

Question 12

A landlord is not allowed to charge an increased security deposit for a tenant with a service animal…?

A. T
B. F

Answer 12

B. A. True

Question 13

Any licensed real estate broker or agent can call themselves a Realtor…..?

A. T
B. F

Answer 13

B. False

Question 14

In order to be considered a senior living residence, at least 80% of the units must be occupied by persons….. years or older?

A. 51
B. 55
C. 64
D. 75

Answer 14

B. 55

Question 15

A federal legislation including the imposition of civil and punitive damages for anti-trust activities is known as the …?

A. Sherman Anti-Trust Act
B. Corporate Anti -Trust Act
C. Business Anti-Trust Act
D. RESPA

Answer 15

A. Sherman Anti-Trust Act

Question 16

Money, or other things of value, that a real estate agent receives on behalf of the principal or any other person involved in a transaction are known as ….?

A. Escrow funds
B. Agent funds
C. Trust funds
D. Fiduciary funds

Answer 16

C. Trust funds

Question 17

The illegal mixing of personal funds with money held in trust on behalf of a client is known as…?

A. Escrow
B. Novation
C. Consideration
D. Commingling

Answer 17

D. Commingling

Question 18

The federal law requires the disclosure to borrowers of settlement (closing) procedures and costs by means of a pamphlet and forms prescribed by the United States Department of Housing and Urban Development (HUD)….?

A. Fannie Mae
B. RESPA
C. Sherman Anti-Trust Act
D. Full Disclosure Act

Answer 18

B. RESPA

Question 19

The Sherman Anti-Trust prohibits which of the following ….?

A. Price fixing
B. Market allocation
C. Group boycotting
D. All of the above

Answer 19

D. All of the above

Question 20

The unlawful appropriation of another’s property or funds is known as ….?

A. Conversion
B. Escrow
C. Rescission
D. Novation

Answer 20

A. Conversion

Question 21

The Fair Employment Housing Act is also known as the Rumford Fair Housing Act….?

A. T
B. F

Answer 21

B. False

Question 22

Which of the following is considered a support or service animal….?

A. Personal pet
B. Seeing -eye dog
C. Adopted pet
D. All of the above

Answer 22

B. Seeing-eye-dog

Question 23

Real Estate Brokers are required to maintain records of each transaction for at least how many years….?

A. 1
B. 2
C. 3
D. 4

Answer 23

C. 3

Question 24

This federal law prohibits all discrimination on the basis of race only……?

A. Civil Rights Act of 1866
B. Civil Rights Act of 1964
C. Civil Rights Act of 1968
D. Civil Rights Act of 1974

Answer 24

A. Civil Rights Act of 1866

Question 25

This federal law prohibits discrimination on the basis of race, sex, color, national origin, or gender in any housing program receiving federal money....? A. Civil Rights Act of 1866 B. Civil Rights Act of 1964 C. Civil Rights Act of 1968 D. Civil Rights Act of 1974

Answer 25

B. Civil Rights Act of 1964

Question 26

This federal law prohibits discrimination in the sale, rental, financing, or appraisal of housing on the basis of race, color, religion, gender, national origin, handicap, or familial status....? A. Civil Rights Act of 1866 B. Civil Rights Act of 1964 C. Civil Rights Act of 1968 D. Civil Rights Act of 1974

Answer 26

C. Civil Rights Act of 1968

Question 27

This court cased determined it was unconstitutional to refuse to sell a house on the basis of race…? A Roe v. Wade B Brown v. Board of Education C Plessy v. Ferguson D Jones v. Mayer

Answer 27

D. Jones V Mayer

Question 28

Using racial, ethnic, or religious criteria in suggesting, recommending, and/or influencing individuals regarding locations for the purchase or rental of a single family residence or rental dwelling is known as…? A Steering B Blockbusting C Redlining D Testing

Answer 28

A. Steering

Question 29

The use of prejudice to instill fear, or panic, in order to motivate individuals in a particular area or neighborhood to sell or dispose of their property because of the entrance, or potential entry, of a protected class is known as…? A Steering B Blockbusting C Redlining D Testing

Answer 29

B Blockbusting

Question 30

The refusal to lend money within a specific area for various reasons is known as…? A Steering B Blockbusting C Redlining D Testing

Answer 30

C Redlining

Question 31

What was the Civil Rights Act of 1866?

Answer 31

A federal law that prohibits all discrimination on the basis of race.

Question 32

What was the Civil Rights Act of 1964?

Answer 32

A law that prohibited discrimination on the basis of race, color, national origin, or gender in any housing program receiving federal money.

Question 33

What is the Fair Housing Act of 1968?

Answer 33

A federal Prohibition on discrimination in sale, rental, financing, or appraisal of housing on the basis of race, color, religion, gender, national origin, handicap, or familial status.

Question 34

What is Steering?

Answer 34

Using racial, ethnic, or religious criteria in suggesting, recommending, and/or influencing individuals regarding locations for the purchase or rental of a single family residence or rental dwelling.

Question 35

What is Redlining?

Answer 35

The refusal to lend money within a specific area for various reasons.

Question 36

What is Blockbusting?

Answer 36

The use of prejudice to instill fear, or panic (also known as panic selling), in order to motivate individuals in a particular area or neighborhood to sell or dispose of their property because of the entrance, or potential entry, of a protected class.

Question 37

What is the American with Disabilities Act (ADA)

Answer 37

A federal law protecting the rights of individuals with physical or mental impariments.

Question 38

What is Disability?

Answer 38

A long-term physical or mental impairment, or condition, that substantially limits a person’s major activities.

Question 39

What is Sherman Anti- Trust Act?

Answer 39

Federal legislation including imposition of civil and punitive damages for anti-trust activities.

Question 40

What is the Real Estate Settlement Procedures Act (RESPA)?

Answer 40

A consumer protection statute, first passed in 1974. The purpose of RESPA are: 1) To help consumers become better shoppers for settlement services and 2) To eliminate kickbacks and referral fees that unnecessarily increase the costs of certain settlement services.

Question 41

What are Trust Funds?

Answer 41

Money, or other things of value, that a real estate agent receives on behalf of the principal or any other person involved in a transaction.

Question 42

What does "Commingling" mean?

Answer 42

To mingle or mix, for example, a client’s funds in the broker’s personal or general account.

Question 43

What is a conversion?

Answer 43

The unlawful appropriation of another’s property or funds.