CA Real Estate Finance Course » 2021 » Sec 2 Unit 1 Exam

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Question #1
What would likely happen to the real estate market if there were no lenders?
A.   Construction of new homes would increase.
B.   Homeownership would increase.
C.   Nothing would happen.
D.   New construction and home purchases would greatly decrease.
Question #2
Real estate professionals keep a multitude of other professionals busy during the buying and selling process. Which of these professionals or entities are most active during the construction phase of real estate?
A.   Lenders
B.   Appraisers
C.   General contractors
D.   Title companies
Question #3
During which phase of the real estate cycle is local government most directly involved?
A.   Construction
B.   Moving
C.   Planning
D.   Living
Question #4
How do mortgage lenders acquire income?
A.   Loan interest and refinancing
B.   Mortgage packaging on the secondary market
C.   Loan interest and mortgage packages sold on the secondary market
D.   Loan refinancing
Question #5
Which of the following is the best example of the economic principal of leveraging, as it applies to a real estate transaction?
A.   Making a down payment
B.   Completing the loan process
C.   Purchasing title insurance
D.   Making the loan payments
Question #6
What effect do low interest rates have on borrowing?
A.   Makes it harder to borrow
B.   Makes borrowing impossible for most consumers
C.   Makes borrowing less expensive
D.   Makes borrowing more expensive
Question #7
Which of the following entities support lenders in having adequate cash flow available?
A.   Local banks and credit unions
B.   The Federal Reserve and secondary mortgage markets
C.   Private investors and overseas investors
D.   The Federal Reserve and local banks
Question #8
Tonia is buying a new home. She has a down payment of $30,000 and will obtain a $250,000 mortgage from a local bank to make up the remainder of the purchase price. What is this an example of?
A.   Disintermediation
B.   Leasing
C.   Leveraging
D.   Levying

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