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.   Nothing would happen.
B.   Homeownership would increase.
C.   Construction of new homes would increase.
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.   General contractors
C.   Title companies
D.   Appraisers
Question #3
During which phase of the real estate cycle is local government most directly involved?
A.   Planning
B.   Living
C.   Moving
D.   Construction
Question #4
How do mortgage lenders acquire income?
A.   Mortgage packaging on the secondary market
B.   Loan refinancing
C.   Loan interest and refinancing
D.   Loan interest and mortgage packages sold on the secondary market
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.   Purchasing title insurance
B.   Completing the loan process
C.   Making a down payment
D.   Making the loan payments
Question #6
What effect do low interest rates have on borrowing?
A.   Makes borrowing impossible for most consumers
B.   Makes borrowing more expensive
C.   Makes borrowing less expensive
D.   Makes it harder to borrow
Question #7
Which of the following entities support lenders in having adequate cash flow available?
A.   The Federal Reserve and secondary mortgage markets
B.   Local banks and credit unions
C.   The Federal Reserve and local banks
D.   Private investors and overseas investors
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.   Leasing
B.   Leveraging
C.   Disintermediation
D.   Levying

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