Unit 1 Quiz

Question 1

1. A professional opinion of a property’s market value, based on established methods of using trained, professional judgement is performed by a:

A. Real Estate broker
B. Real Estate counselor
C. Real Estate Appraiser
D. home inspector

Answer 1

Answer: C. Real estate appraiser

Question 2

2. 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

Answer 2

Answer: B. Prices tend to drop

Question 3

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

A. Population
B. Demographics
C. Wage levels and employment opportunities
D. Government financial policies

Answer 3

Answer: D. Government financial policies

Question 4

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

Answer: C. Wage levels and employment opportunities

Question 5

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

A. specialization within the real estate industry
B. factors affecting demand
C. non-real estate professionals
D. government regulation of the real estate industry

Answer 5

Answer: A. specialization within the real estate industry

Question 6

6. A REALTOR is:

A. a specially license 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.

Answer 6

Answer: D. A real estate licensee who is a member of the national association of realtors

Question 7

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?

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

Answer 7

Answer: B. Housing will become more expensive

Question 8

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 the licensee’s profession?

A. Real Estate appraiser
B. Real Estate educator
C. Real estate counselor
D. REALTOR

Answer 8

Answer: C. Real estate counselor

Question 9

9. The term REALTOR refers to

A. any real estate licensee
B. a real estate licensee specializing in residential properties
C. a real estate educator
D. a member of the national association of REALTORs

Answer 9

Answer: D. a member of the national association of Realtors.

Question 10

10. Schools are considered part of which real estate classification?

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

Answer 10

Answer: A. special purpose

Question 11

11. When demand for a commodity decreases and supply remains the same.

A. price tends to rise
B. prices is not affected
C. price tends to fall
D. the market becomes stagnant

Answer 11

Answer: C. prices tends to fall

Question 12

12. 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 appraisers professional judgement
C. Transfer of funds in the financing of real estate transactions
D. Process of providing clients with competent independent advice

Answer 12

Answer: B. Method of estimating a property’s market value based on established methods and the appraisers professional judgement

Question 13

13. 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 members banks
D. Establishes real estate appraisal standards

Answer 13

Answer: C. establishes a discount rate of interest for the money it lends to its members banks.

Question 14

14. All of these are categories of the users of real property except:

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

Answer 14

Answer: A. developmental

Question 15

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

Answer: D. Demographics

Question 16

16. Local governments can influence the supply of real estate by

A. Land use controls
B. Zoning ordinances
C. Building costs
D. All of these

Answer 16

Answer: D. All of these

Question 17

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:

A. an educator
B. an home inspector
C. an appraiser
D. a property manager

Answer 17

Answer: B. an home inspector

Question 18

When the supply of a commodity decreases while demand remains the same, price tends to:

A. Drop
B. Not be affected
C. rise
D. go in the direction of the supply

Answer 18

Answer: C. rise

Question 19

19. When responsible for maintaining a client property and maximizing the return on the clients 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

Answer 19

Answer: B. Property manager

Question 20

20. 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 life styles
D. household data

Answer 20

Answer: B. demographics