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unit 1: intro to the real estate business > Multiple Choice > Flashcards

Multiple Choice Flashcards

1
Q

Office buildings and retail space are examples of…

A) Commercial real estate
B) Special use real estate
C) Residential property
D) Industrial property

A

Commercial real estate

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2
Q

A married couple filing a joint tax return can exclude up to $500,000 of profit on the sale of their principal residence from…

A) Estate tax
B) Liquidity
C) Capital gains tax
D) Depreciation

A

Capital gains tax

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3
Q

All of these factors will tend to affect demand for real estate EXCEPT…

A) Construction and material costs
B) Employment levels
C) Wage rates
D) Demographics

A

Construction and material costs

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4
Q

When the population of a town suddenly increases, which of these is MOST likely to occur?

A) Rental rates will fall due to increased competition
B) Demand for housing will decrease
C) New housing starts will decrease
D) Real estate prices will increase

A

Real estate prices will increase

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5
Q

The idea that no two parcels of land are exactly alike called…

A) Immobility
B) Subdivision
C) Uniqueness
D) Location

A

Uniqueness

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5
Q

Property management, leasing, appraisal, financing, and development are all examples of…

A) Specializations directly linked to state and federal government financial policies
B) Separate professions within the real estate industry
C) Real estate brokerage professions
D) Demographic factors that affect demand for real property in a commercial market

A

Separate professions within the real estate industry

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6
Q

The factors that can affect the demand for real estate include…

A) Demographics
B) Labor force
C) Construction costs
D) Government controls

A

Demographics

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7
Q

A property owner who does not want to deal with the everyday tasks of managing a rental property can hire…

A) A property manager
B) An appraiser
C) A transactional broker
D) A property attorney

A

A property manager

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8
Q

When the supply of a certain commodity decreases while demand remains the same, the price of that commodity will tend to…

A) Remain the same
B) Increase
C) Decrease slightly
D) Decrease significantly

A

Increase

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9
Q

A factor that affects the supply of real estate but is not usually under government control is…

A) The Federal Reserve Board’s discount rate
B) A shortage of skilled labor or building materials
C) Land-use controls, such as zoning
D) Federal environmental regulations

A

A shortage of skilled labor or building materials

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10
Q

A professional opinion of a property’s market value, based on established methods and using trained, professional judgment, is performed by a…

A) Real estate broker
B) Real estate counselor
C) Real estate appraiser
D) Home inspector

A

Real estate appraiser

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11
Q

In general, when the supply of a certain commodity increases,

A) Prices tend to rise
B) Prices tend to drop
C) Demand tends to rise
D) Demand is unchanged

A

Prices tend to drop

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12
Q

Which of these factors tends to affect supply in the real estate market?

A) Population
B) Demographics
C) Employment and wage levels
D) Government controls and financial policies

A

Government controls and financial policies

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13
Q

Which factor MOST likely influences the demand for real estate?

A) Labor force
B) Construction costs
C) Wage levels and employment opportunities
D) Government financial policies

A

Wage levels and employment opportunities

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14
Q

A REALTOR® is

A) A specially licensed real estate broker
B) Any real estate broker who assists buyers, sellers, landlords, or tenants in any real estate transaction
C) A member of the National Association of Real Estate Brokers who specializes in residential properties
D) A real estate licensee who is a member of the National Association of REALTORS®

A

A real estate licensee who is a member of the National Association of REALTORS®

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15
Q

A major manufacturer of automobiles announces that it will relocate one of its factories, along with 2,000 employees, to a small town. What effect will this announcement MOST likely have on the small town’s housing market?

A) Housing will become less expensive
B) Housing will become more expensive
C) The announcement involves an issue of demographics, not a supply and demand issue; housing prices will stay about the same.
D) The announcement involves an industrial property; residential housing will not be affected.

A

Housing will become more expensive

16
Q

A licensee who has several years of experience in the industry decided to retire from actively marketing properties. Now this licensee helps clients choose among the various alternatives involved in purchasing, using, or investing in property. What is the licensee’s profession?

A) Real estate appraiser
B) Real estate educator
C) Real estate counselor
D) REALTOR®

A

Real estate counselor

17
Q

Schools are considered part of which real estate classification?

A) Special purpose
B) Industrial
C) Commercial
D) Government-held

A

Special purpose

18
Q

When demand for a commodity decreases and supply remains the same,

A) Price tends to rise
B) Price is not affected
C) Price tends to fall
D) The market becomes stagnant

A

Price tends to fall

19
Q

The term appraisal is defined as the

A) Process of splitting a single property into smaller parcels
B) Method of estimating a property’s market value based on established methods and the appraiser’s professional judgment
C) Transfer of funds in the financing of real estate transactions
D) Process of providing clients with competent independent advice

A

Method of estimating a property’s market value based on established methods and the appraiser’s professional judgment

20
Q

The Federal Reserve Board

A) Monitors the Federal Housing Administration
B) Monitors nationwide construction costs
C) Establishes a discount rate of interest for the money it lends to its member banks
D) Establishes real estate appraisal standards

A

Establishes a discount rate of interest for the money it lends to its member banks

21
Q

All of these are categories of the uses of real property EXCEPT

A) Developmental
B) Residential
C) Agricultural
D) Industrial

A

Developmental

22
Q

All of these would affect overall demand in the real estate market EXCEPT

A) Population
B) Demographics
C) Wage levels
D) Zoning ordinances

A

Zoning ordinances

23
Q

Local government can influence the supply and demand of real estate by

A) Land-use controls
B) Zoning ordinances
C) Building codes
D) All of the above

A

All of the above

24
Q

A licensed real estate professional who performs a visual survey of a property’s structure and systems and prepares an analytical report for a purchaser or owner is acting as

A) An educator
B) A home inspector
C) An appraiser
D) A property manager

A

A home inspector

25
Q

When the supply of a commodity decreases while demand remains the same, prices tend to

A) Drop
B) Not be affected
C) Rise
D) Go in the direction of supply

A

Rise

26
Q

When responsible for maintaining a client’s property and maximizing the return on the client’s investment, a real estate licensee is serving as

A) A rental agent
B) A property manager
C) A building maintenance specialist
D) An investment counselor

A

A property manager

27
Q

Detailed information about the age, education, behavior, and other characteristics of members of a population group is called

A) Population analysis
B) Demographics
C) Family lifestyles
D) Household data

A

Demographics

28
Q

Realtors must…

A) Subscribe to a code of ethics
B) Be licensed as managing brokers
C) Have a bachelor’s degree
D) Be at least 25 years old

A

Subscribe to a code of ethics

unit 1: intro to the real estate business (3 decks)

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