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Real Estate Finance 1-7 Quiz

Total questions: 20

Worksheet time: 10mins

Name
Class
Date
1.

When the supply of real estate exceeds the demand for real estate, prices:

a)

Decrease

b)

Increase

c)

Stagnate

d)

Are Not Affected

2.

Tax exemptions are offered for all of the following EXCEPT:

a)

Vacation Homes

b)

Homestead Property

c)

Seniors

d)

Disabled

3.

How does the Federal Deposit Insurance Corporation (FDIC) preserve public confidence in the banking system?

a)

by insuring bank deposits

b)

by forgiving debts

c)

by improving consumer credit scores

d)

by pre-qualifying consumers for loans

4.

What program supports the purchase of land by veterans in Texas?

a)

Texas Veterans Land Board Program

b)

Texas Agricultural Money Program

c)

Texas Farm Program

d)

Texas Farmer Mac Program

5.

Who is prohibited by RESPA from accepting fees for making referrals?

a)

Lenders

b)

RE Agents

c)

Title Agents

d)

All Choices are correct

6.

What is the Truth in Lending Act intended to ensure?

a)

that consumers are able to compare credit terms

b)

that credit terminology is unique to each lender

c)

that a lawyer is required to explain credit terms

d)

that creditors use a different expression of rates for each loan

7.

The type of mortgage originator that brings borrowers and lenders together, but who has NO money to lend is the:

a)

mortgage broker

b)

mortgage banker

8.

Jack owns ABC Mortgage Company. Jack's primary job is to originate loans for his company and earn fees associated with the origination. ABC Mortgage Company's loans are sold shortly after closing and they re-invest the money into another loan origination. Jack is a(n) ______.

a)

mortgage banker

b)

mortgage broker

9.

What is a registered company that owns and operates commercial real estate on behalf of investors called?

a)

REIT

b)

REMT

10.

In a title theory state, which document is used as the security instrument for the note?

a)

deed of trust

b)

general warranty deed

c)

mortgage

d)

promissory note

11.

The contract that spells out the agreement of the loan terms between the borrower and the lender is the:

a)

promissory note

b)

deed of trust

12.

Texas is a

a)

Lien Theory State

b)

Title Theory State

13.

FHA and VA are

a)

Conventional Loans

b)

Government Loans

14.

Which one of the following definitions best describes a tax deduction?

a)

a reduction in the taxable amount of a taxpayer’s income

b)

a dollar-for-dollar reduction in a taxpayer’s tax liabilities

15.

Which mortgage group provides mortgage financing by using their own funds?

a)

mortgage bankers

b)

mortgage brokers

16.

Melissa, a sales agent, has noticed an increase in buyer phone calls and an increase in house prices. She also read in the paper that new construction was up 10%. What can this increase in housing be attributed to?

a)

Increase Demand

b)

Increase Supply

17.

Which of these types of loans can always be sold on the secondary mortgage market?

a)

conforming loans

b)

non-conforming loans

18.

What is a mortgage broker?

a)

an individual who brings together borrowers and lenders to create mortgages

b)

an individual who helps consumers get mortgage loans

19.

Which statement best describes the relationship between the primary and secondary mortgage markets?

a)

The secondary market stabilizes the primary market by replenishing funds.

b)

The primary market props up the secondary market by purchasing notes.

20.

Which government agency has the following three tools for influencing monetary policy: setting the discount rate, setting reserve requirements, and open-market operations?

a)

Federal Reserve

b)

Treasury Department