FINANCE CHP1

Question 1

When there are more home buyers than there are homes for sale, its is a
a. buyer’s market
b. conveyance of deed
c. equal market
d. seller’s market

Answer 1

d. sellers market

Question 2

____ factors are NOT a force influencing housing cycles
a. economic
b. social
c. structure
d. supply

Answer 2

c. structure

Question 3

The federal government influences the money supply through
a. fiscal and monetary policy
b. physical and social factors
c. rules of equilibrium
d. supply and demand

Answer 3

a. fiscal and monetary policy

Question 4

The Treasury Department is NOT responsible for
a. federal spending
b. managing the federal deficit
c. tax collection
d. regulating commercial banks

Answer 4

d, regulating commercial banks

Question 5

Under the Truth in Lending Act a consumer refinancing a home has ___day(s) to change his mind after closing
a. 0
b. 1
c. 3
d. 5

Answer 5

c. 3

Question 6

How many Federal Reserve Banks are there?
a. 6
b. 8
c. 12
d. 14

Answer 6

c. 12

Question 7

Tools used by the Fed to implement monetary policy include
a. Congressional Acts
b. discount rates and reserve requirements
c. fiscal assertiveness
d. prime rates and subprime rates

Answer 7

b. discount rates and reserve requirements

Question 8

The federal regulation prohibiting discrimination in the lending process is
a. the Equal Credit Opportunity Act
b. the Fair Housing Act
c. redlining
d. the Truth in Lending Act

Answer 8

a. the Equal Credit Opportunity Act

Question 9

The Real Estate Settlement and Procedures Act (RESPA) covers buying
a. first home
b. share of a shopping center
c. small restaurant
d. storage warehouse

Answer 9

a. first home

Question 10

Under the Truth in Lending Act, a consumer selling a home and buying another to live in has __ day(s) to change their mind
a. 0
b. 1
c. 3
d. 5

Answer 10

a. 0

Question 11

The document given to the buyer within three business days after completing a loan application is the
a. disclosure of APR
b. Good faith Agreement
c. Loan Estimate
d. Truth in Lending Act

Answer 11

c. Loan Estimate

Question 12

The process of inflating the sale price of a property with a fraudulent second mortgage is considered
a. customer service
b. good selling skills
c. mortgage fraud
d. a way to increase your commission

Answer 12

c. mortgage fraud

Question 13

Selling your home due to a death in your immediate household most likely is a(n) ___ factor
a. economic
b. governmental
c. physical
d. social

Answer 13

d. social

Question 14

The U.S Treasury is responsible for__ policy
a. economic
b. fiscal
c. monetary
d. social

Answer 14

b. fiscal

Question 15

receiving a cash incentive for referring a buyer to a lender is a violation of
a. the Fair Housing Act
b. Regulation Z
c. RESPA
d. the Truth in Lending Act

Answer 15

c. RESPA

Question 16

The relationship between the cost of money and the total amount financed is the
a. APR
b. cost of goods sold
c. interest rate
d. prime rate

Answer 16

a. APR

Question 17

The amount a commercial bank must keep on deposit is known as
a. equilibrium
b. monetary policy
c. reserve requirements
d. supply and demand

Answer 17

c. reserve requirements

Question 18

Which is FALSE under the Equal Credit Oppourtunity Act
a. all income declared can count towards buying a home
b. homebuyers may not be discriminated against due to sex
c. homebuyers receiving public assistance may qualify for a loan
d. Lenders cannot deny a homebuyer’s application when income is not ongoing and/or verifiable

Answer 18

d. Lenders cannot deny a homebuyer’s application when income is not ongoing and?or verifiable

Question 19

When housing prices fall due to the relocation of a major employer, it is an example of a(n) ___ factor
a. economic
b. governmental
c. physical
d. social

Answer 19

a. economic

Question 20

Members of the Federal Reserve Board of Governors are appointed of terms of
a. 1 year
b. 4 years
c. 10 years
d. 14 years

Answer 20

d. 14 years