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.   More than $50,000
D.   Less 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 not growing fast enough.
B.   The community will not grow.
C.   The community is potentially put at risk.
D.   The community's economic stability is guaranteed.
Question #3
Which generation financed their homes due to also having other debt obligations?
A.   Millennials
B.   Echo Boomers
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.   Supply is greater than demand
C.   Loans are widely available
D.   Demand is greater than supply
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.   Mortgage Forgiveness Debt Relief Act of 2007
D.   American Taxpayer Relief Act of 2012
Question #6
Which of the following best describes the state of the market during the over supply phase of the real estate cycle?
A.   Increases in hiring, employment, public confidence, and lots of buyers in the market
B.   Properties selling for more than their appraised value, many buyers in the market, and lots of new construction
C.   Unemployment increasing, prices falling, and foreclosures on the rise
D.   High but stabilized unemployment and a high number of foreclosures
Question #7
Which of the following items directly influences real estate demand?
A.   Construction of new homes
B.   Construction costs
C.   Loan availability
D.   Conversions to residential properties
Question #8
Which of the following best describes the state of the market during the recession phase of the real estate cycle?
A.   Unemployment increasing, prices falling, and foreclosures on the rise
B.   High but stabilized unemployment and a high number of foreclosures
C.   Properties selling for more than they're worth, many buyers in the market, and lots of new construction
D.   Increases in hiring, employment, and public confidence, and lots of buyers in the market

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