Unit 1

Question 1

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

Answer 1

real estate appraiser

Question 2

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

Answer 2

prices tend to drop

Question 3

What factors tend to affect supply in the real estate market?

Answer 3

Government controls and financial policies

Question 4

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

Answer 4

wage levels and employment opportunities

Question 5

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

Answer 5

specializations within the real estate industry

Question 6

A REALTOR is

Answer 6

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

Question 7

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 towns’ housing market?

Answer 7

Houses will become more expensive.

Question 8

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 this licensee’s profession?

Answer 8

Real estate counselor

Question 9

The term REALTOR refers to

Answer 9

A member of the National Association of REALTORS

Question 10

Schools are considered part of which real estate classification?

Answer 10

Special- purpose

Question 11

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

Answer 11

Price tends to fall

Question 12

The term appraisal is defined as the

Answer 12

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

Question 13

The Federal Reserve Board

Answer 13

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

Question 14

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

a. development
b. residential
c. agricultural
d. industrial

Answer 14

developmental

Question 15

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

a. population
b. demographics
c. wage levels
d. zoning ordinances

Answer 15

zoning ordinances

Question 16

All of these affect how quickly the forces of supply and demand work EXCEPT

a. a property’s specific geographic location
b. immobility of a property
c. degree of standardization of the property’s price
d. uniqueness of the property

Answer 16

degree of standardization of the property’s price

Question 17

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

Answer 17

a home inspector

Question 18

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

Answer 18

rise

Question 19

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

Answer 19

a property manager

Question 20

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

Answer 20

demographics