TYPE: M

1. Office buildings and retail space are examples of

*a. commercial real estate.

b. special-use real estate.

c. residential property.

d. industrial property.

2. A person who advises a real estate client who is making a purchase to use or invest in real estate is called a(n)

a. educator.

b. mortgage broker.

*c. counselor.

d. subdivider.

3. All of the following factors will tend to affect demand for real estate EXCEPT

*a. transfer taxes.

b. employment levels.

c. wage rates.

d. demographics.

4. When the population of a town suddenly increases, which of the following is MOST LIKELY to occur?

a. Rental rates fall due to increased competition.

b. Demand for housing decreases.

c. New housing starts will decrease.

*d. Real estate prices will increase.

5. Property management, appraisal, financing, and development are all

a. specializations directly linked to state and federal government financial policies.

*b. separate professions within the real estate industry.

c. real estate brokerage professions.

d. demographic factors that affect demand for real property in a commercial market.

6. The parsimony principle means that a theory

*a.generates testable hypotheses.

b.has many practical applications.

c.is concise and simple.

d.is inaccurate or invalid.

7. "Your theory is otherwise strong, but it is weak in its heuristic value." This suggests that the theory is

a.too complicated to be understood.

*b.disconfirmed by obtained data.

c.unable to generate many testable hypotheses.

d.too closely tied to data.

TYPE: T

Adjustable-rate mortgage (ARM)

A loan characterized by a fluctuating interest rate, usually one tied to a bank or savings and loan association cost-of-funds.

Amortized loan

A loan in which the principal as well as the interest is payable in monthly or other periodic installments over the term of the loan.

Balloon payment

A final payment of a mortgage loan that is considerably larger than the required periodic payments because the loan amount was not fully amortized.

Blanket loan

A mortgage covering more than one parcel of real estate, providing for each parcel’s partial release from the mortgage lien upon repayment of a definite portion of the debt.

Buydown

A financing technique used to reduce the monthly payments for the first few years of a loan. Funds in the form of discount points are given to the lender by the builder or seller to buy down or lower the effective interest rate paid by the buyer, thus reducing the monthly payments for a set time.

Certificate of reasonable value (CRV)

A form indicating the appraised value of a property being financed with a VA loan.

Community Reinvestment Act of 1977 (CRA)

Under the act, financial institutions are expected to meet the deposit and credit needs of their communities; participate and invest in local community development and rehabilitation projects; and participate in loan programs for housing, small businesses, and small farms.

Computerized loan origination (CLO)

An electronic network for handling loan applications through remote computer terminals linked to various lenders’ computers.

Construction loan

A short-term loan usually made during the construction phase of a building project.

Conventional loan

A loan that requires no insurance or guarantee.

TYPE: F

George Washington was the first president of the United States.

21.5 million originalVolkwagen Beetles were produced between 1938 and 1945.

Color Television was first introduced in 1953, but did not gain popularity until the mid 1960s.

You are required to add the eggs to most boxed cake mixes because of market research showing that housewives felt less guilt about taking the shortcut of using boxed mix if they added their own eggs.

In the United States, the average age at marriage for women is 26.9. For men, it is 28.9.

A large grouping (“herd”) of cats is called a clowder.

Pregnant women are advised not to eat many common foods during pregnancy, including hot dogs, sushi, deli meat, and soft-serve ice cream.

North Dakota is the U.S.’s 39th state, admitted to the union on November 2, 1889.

Diamond is the best known thermal conductor (heat transfer) among naturally occurring substances.

The first artificial Christmas trees were made from dyed goose feathers.

Misspell is one of the 100 most often misspelled words in the English language.