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Flashcards in Unit 1 Quiz Deck (20)
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1
Q
  1. A professional opinion of a property’s market value, based on established methods of using trained, professional judgement is performed by a:

A. Real Estate broker
B. Real Estate counselor
C. Real Estate Appraiser
D. home inspector

A

Answer: C. Real estate appraiser

2
Q
  1. In general, when the supply of a certain commodity increases:

A. Prices tend to rise.
B. Prices tend to drop
C. Demand tends to rise
D. Demand is unchanged

A

Answer: B. Prices tend to drop

3
Q
  1. Which of these factors tends to affect supply in the real estate market?

A. Population
B. Demographics
C. Wage levels and employment opportunities
D. Government financial policies

A

Answer: D. Government financial policies

4
Q
  1. Which factor MOST likely influences the demand for real estate?

A. Labor force
B. Construction costs
C. Wage levels and employment opportunities
D. Government financial policies

A

Answer: C. Wage levels and employment opportunities

5
Q
  1. Property management, leasing, appraisal, financing, and development are all examples of:

A. specialization within the real estate industry
B. factors affecting demand
C. non-real estate professionals
D. government regulation of the real estate industry

A

Answer: A. specialization within the real estate industry

6
Q
  1. A REALTOR is:

A. a specially license real estate broker
B. any real estate broker who assists buyers sellers, landlords or tenants in any real estate transaction.
C. a member of the national association of real estate brokers who specializes in residential properties
D. a real estate licensee who is a member of the national association of REALTORS.

A

Answer: D. A real estate licensee who is a member of the national association of realtors

7
Q
  1. A major manufacturer of automobiles announces that it will relocate one of its factories, along with 2,000 employees, to a small town. What effect will this announcement MOST likely have on the small towns housing market?

A. Housing will become less expensive
B. Housing will become more expensive
C. The announcement involves an issue of demographics, not supply and demand issue; housing prices will stay about the same
D. The announcement involves an industrial property; residential housing will not be affected.

A

Answer: B. Housing will become more expensive

8
Q
  1. A licensee who has several years of experience in the industry decided to retire from actively marketing properties. Now this licensee helps clients. choose among the various alternatives involved in purchasing, using, or investing in property. What is the licensee’s profession?

A. Real Estate appraiser
B. Real Estate educator
C. Real estate counselor
D. REALTOR

A

Answer: C. Real estate counselor

9
Q
  1. The term REALTOR refers to

A. any real estate licensee
B. a real estate licensee specializing in residential properties
C. a real estate educator
D. a member of the national association of REALTORs

A

Answer: D. a member of the national association of Realtors.

10
Q
  1. Schools are considered part of which real estate classification?

A. Special purpose
B. Industrial
C. Commercial
D. Government-held

A

Answer: A. special purpose

11
Q
  1. When demand for a commodity decreases and supply remains the same.

A. price tends to rise
B. prices is not affected
C. price tends to fall
D. the market becomes stagnant

A

Answer: C. prices tends to fall

12
Q
  1. The term appraisal is defined as the:

A. process of splitting a single property into smaller parcels
B. Method of estimating a property’s market value based on established methods and the appraisers professional judgement
C. Transfer of funds in the financing of real estate transactions
D. Process of providing clients with competent independent advice

A

Answer: B. Method of estimating a property’s market value based on established methods and the appraisers professional judgement

13
Q
  1. The Federal reserve board

A. monitors the federal housing administration
B. monitors nationwide construction costs
C. establishes a discount rate of interest for the money it lends to its members banks
D. Establishes real estate appraisal standards

A

Answer: C. establishes a discount rate of interest for the money it lends to its members banks.

14
Q
  1. All of these are categories of the users of real property except:

A. Developmental
B. Residential
C. Agricultural
D. Industrial

A

Answer: A. developmental

15
Q
  1. All of these would affect overall demand in the real estate market except:

A. Population
B. Demographics
C. Wage levels
D. Zoning ordinances

A

Answer: D. Demographics

16
Q
  1. Local governments can influence the supply of real estate by

A. Land use controls
B. Zoning ordinances
C. Building costs
D. All of these

A

Answer: D. All of these

17
Q
  1. A real estate professional who performs a visual survey of a property’s structure and systems and prepares an analytical report for a purchaser or an owner is acting as:

A. an educator
B. an home inspector
C. an appraiser
D. a property manager

A

Answer: B. an home inspector

18
Q

When the supply of a commodity decreases while demand remains the same, price tends to:

A. Drop
B. Not be affected
C. rise
D. go in the direction of the supply

A

Answer: C. rise

19
Q
  1. When responsible for maintaining a client property and maximizing the return on the clients investment, a real estate licensee is serving as

A. A rental agent
B. a property manager
C. a building maintenance specialist
D. an investment counselor

A

Answer: B. Property manager

20
Q
  1. Detailed information about the age, education, behavior, and other characteristics of members of a population group is called

A. population analysis
B. demographics
C. family life styles
D. household data

A

Answer: B. demographics