Rights in real estate are:
(a) possible
(b) absolute
(c) expensive
(d) not absolute
Heavy government borrowing tends to:
(a) decrease interest rates
(b) stabilize interest rates
(c) increase interest rates
(d) is not a problem
Individual building and housing standards include all of the following except:
(a) minimum housing construction codes
(b) airport safety procedures
(c) zoning requirement
(d) subdivision requirements
An environmental impact report studies four major areas or aspects. These are the
economic, social, biological, and:
(a) planning aspects
(b) private cost aspects
(c) private benefit aspects
(d) physical aspects
Which of the following is true about the business property market?
(a) buyers are usually not sophisticated
(b) Leasing Terms are not important
(c) buyer or seller may be a financial institution
(d) there is limited need for appraisers
The Euclid v Amber Realty was decided in:
(a) 1934
(b) 1926
(c) 1910
(d) 1954
A contract where the tenant agrees to pay all of the operating expenses is a:
(a) gross lease
(b) net lease
(c) percentage lease
(d) residual lease
The most profitable use:
(a) is a consideration in a highest and best use study
(b) is not a consideration in a highest and best use study
(c) is always allowed by zoning
(d) none of the above
The Fed attempts to control money supply by using:
(a) changes in reserve requirements
(b) closed-market operations
(c) spending less money
(d) increase taxes
Once a commercial construction project has started, construction tends to continue,
even if the demand for the additional supply has declined. This is called the:
(a) lender effect
(b) GDP effect
(c) streamline effect
(d) pipeline effect
Obtaining government approvals for real estate development is:
(a) a timely and difficult process
(b) has been streamlined by most government agencies
(c) of no major concern to most developers
(d) none of the above
A regressive tax:
(a)increases in rate as the value of the taxable item increases
(b) remains the same no matter what
(c) stays level
(d) declines in rate as the value of the item being taxed increases
Depreciation is:
(a) cost recovery
(b) cash flow consideration for net operating income
(c) not a consideration for investors
(d) none of the above
In general, the demand for goods and services frequently exceeds the supply.
(a) True
(b) False
Inclusionary zoning is a type of regulation that:
(a) helps promote affordable housing
(b) promotes larger houses
(c) enforces integration
(d) private land-use control
Net Operating Income less Annual Debt Service Equals:
(a) Net Operating Income
(b) Gross Operating Income
(c) Before-Tax Cash Flow
(d) none of the above
Efficiency of production:
(a) is not a consideration in input-output study
(b) does not encourage export production
(c) is not a consideration in community development
(d) a path to economic growth
Forces for neighborhood change include:
(a) physical forces
(b) political forces
(c) economic forces
(d) all of the above
Demand for housing includes all of the following except:
(a) effective income
(b) population
(c) tastes and life styles
(d) wants
Local real estate trends can differ from national trends:
(a) almost never
(b) depending on the local market
(c) always differ
(d) never differ
When there are many knowledgeable buyers and sellers, and neither party has control,
what label is the most correct?
(a) perfect market
(b) imperfect market
(c) mixed economy
(d) command economy
Investors in business properties create a more perfect market by being:
(a) highly knowledgeable about the product
(b) involved in more expensive property with few participants
(c) less apt to use expert attorneys
(d) less concerned with zoning requirements
In today’s economy, manufacturers and wholesalers no longer need to be as close to
their retail store accounts as in past decades. Which of the following has given
manufacturers and wholesalers their greatest flexibility in selecting a location?
(a) changes in financial markets
(b) changes in transportation systems
(c) changes in marketing processes
(d) changes in sales techniques
If people are optimistic about the future, investment and spending will usually increase.
(a) true
(b) false
The value and use of a property is most heavily influenced by:
(a) location
(b) sewer lines
(c) construction cost
(d) site characteristics
In the short run, real estate cycles tend to be most influenced by changes in:
(a) mortgage interest rates
(b) death rates
(c) age brackets
(d) cost of construction
According to studies, government regulations could increase the cost of development
by:
(a) 20 to 40 percent
(b) 10 to 20 percent
(c) 5 to 10 percent
(d) up to 50 percent
Money includes all of the following EXECPT:
(a) medium of exchange
(b) a store of value
(c) a standard of deferred payment
(d) monopoly
Real estate professionals can provide the following services except:
(a) help parties close real estate transaction
(b) advise clients
(c) clearly identify property lines
(d) provide market information
Which of the following is an example of a “Big Box” Trend in retailing?
(a) Regional Shopping Center
(b) Community Shopping Center
(c) Large stand alone stores
(d) Strip Centers
The amount of credit available is a _________________ consideration.
(a) supply
(b) demand
(c) willingness
(d) none of the above
The profit motive includes taking risks:
(a) true
(b) false
All of the following can directly influence the supply for real estate, EXCEPT:
(a) population change
(b) demolition rates
(c) rates of construction
(d) government actions
Microeconomics is the study of:
(a) change
(b) individual units within the economy
(c) national economy
(d) growth
State health codes focus on:
(a) the physical division of land
(b) zoning
(c) sewage disposal
(d) landscaping requirement