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

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Question #1
Robert and Jill purchased a single-family home in the suburbs for $50,000 nearly 40 years ago. Considering historical property value fluctuations, what is the likely value of the property today?
A.   Close to $50,000
B.   It's impossible to tell. Historically, property values have not followed a consistent pattern.
C.   Less than $50,000
D.   More than $50,000
Question #2
A multibillion dollar online retail distributor has decided to set up operations in Ashland. The population of Ashland is 22,000. What is the potential impact to the area?
A.   The community is potentially put at risk.
B.   The community is not growing fast enough.
C.   The community will not grow.
D.   The community's economic stability is guaranteed.
Question #3
Which generation financed their homes due to also having other debt obligations?
A.   Echo Boomers
B.   Millennials
C.   Baby Boomers
D.   Generation X
Question #4
Which of the following best describes a seller’s market?
A.   Supply and demand are equal
B.   Demand is greater than supply
C.   Supply is greater than demand
D.   Loans are widely available
Question #5
Which act temporarily removed the requirement that taxpayers whose homes were sold as a result of a foreclosure had to include the loan write-off amount as taxable income?
A.   Taxpayer Relief Act of 1997
B.   Homeowner Affordability and Stability Plan
C.   American Taxpayer Relief Act of 2012
D.   Mortgage Forgiveness Debt Relief Act of 2007
Question #6
Which of the following best describes the state of the market during the over supply phase of the real estate cycle?
A.   High but stabilized unemployment and a high number of foreclosures
B.   Properties selling for more than their appraised value, many buyers in the market, and lots of new construction
C.   Increases in hiring, employment, public confidence, and lots of buyers in the market
D.   Unemployment increasing, prices falling, and foreclosures on the rise
Question #7
Which of the following items directly influences real estate demand?
A.   Conversions to residential properties
B.   Construction of new homes
C.   Loan availability
D.   Construction costs
Question #8
Which of the following best describes the state of the market during the recession phase of the real estate cycle?
A.   Increases in hiring, employment, and public confidence, and lots of buyers in the market
B.   High but stabilized unemployment and a high number of foreclosures
C.   Unemployment increasing, prices falling, and foreclosures on the rise
D.   Properties selling for more than they're worth, many buyers in the market, and lots of new construction

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