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.   Less than $50,000
C.   It's impossible to tell. Historically, property values have not followed a consistent pattern.
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 not growing fast enough.
B.   The community will not grow.
C.   The community's economic stability is guaranteed.
D.   The community is potentially put at risk.
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.   Loans are widely available
B.   Demand is greater than supply
C.   Supply is greater than demand
D.   Supply and demand are equal
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.   American Taxpayer Relief Act of 2012
C.   Mortgage Forgiveness Debt Relief Act of 2007
D.   Homeowner Affordability and Stability Plan
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.   High but stabilized unemployment and a high number of foreclosures
C.   Properties selling for more than their appraised value, many buyers in the market, and lots of new construction
D.   Unemployment increasing, prices falling, and foreclosures on the rise
Question #7
Which of the following items directly influences real estate demand?
A.   Construction costs
B.   Conversions to residential properties
C.   Loan availability
D.   Construction of new homes
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.   Properties selling for more than they're worth, many buyers in the market, and lots of new construction
C.   High but stabilized unemployment and a high number of foreclosures
D.   Increases in hiring, employment, and public confidence, and lots of buyers in the market

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