Section 15 TF Quiz

Question 1

The entire property including building structures and the land are calculated into depreciation.

Answer 1

A. True
[A] B. False

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[Section 15A, Slide 44]; Land is durable and is not calculated into depreciation formulas.

Question 2

There is a relationship between supply, demand and price. The more real estate that is available, the less demand there is for each individual parcel. Prices in turn go up.

Answer 2

A. True
[A] B. False

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[Section 15A, Slide 64]; Prices in turn go down.

Question 3

The definition of Situs involves a buyer’s preferences for a certain area.

Answer 3

[A] A. True
B. False

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[Section 15B, Slide 34]

Question 4

There is an inverse relationship between price of real estate and demand. This means the higher the price, the less the demand. The better, or lower the price, the more demand.

Answer 4

[A] A. True
B. False

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[Section 15B, Slide 5]

Question 5

Demand for Real Estate is inverse to price. As the price comes down demand rises. As the price rises the demand goes down.

Answer 5

[A] A. True
B. False

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[Section 15A, Slide 64]

Question 6

Real estate is generally quick to respond to changes in supply and demand.

Answer 6

A. True
[A] B. False

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[Section 15A, Slide 60]; Real estate is generally slow to respond to changes in supply and demand.

Question 7

A physical characteristic of real estate is the fact that real estate is immobile. Simply put, it doesn’t move.

Answer 7

[A] A. True
B. False

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[Section 15A, Slides 28 & 29]

Question 8

When the mortgage credit market tightens up, less are able to qualify for a mortgage, increasing demand for houses.

Answer 8

A. True
[A] B. False

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[Section 15B, Slide 11]; It decreases demand for housing.

Question 9

A buyer’s market exists when there are more buyers (demand) than available real estate for sale.

Answer 9

A. True
[A] B. False

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[Section 15B, Slide 36]; A seller’s market exists when there are more buyers (demand) than available real estate for sale.

Question 10

Non-homogeneous means that no two parcels are exactly alike.

Answer 10

[A] A. True
B. False

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[Section 15A, Slide 48]